Dawnie
Well-Known Member
I work in a nails and beauty salon on a commision basis.......was told yesterday that each of us have to become a Limited Company! anyone else heard of this .
Cheers
Dawnie xxx
Cheers
Dawnie xxx
Limited Company
- Thread starter Dawnie
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dee
supernatural geek
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i thought you had to have a turnover of 60 k or more to be a ltd company 
there aint much chance of me earning anywhere near that !! pmsl , i dont think its right hun ? i think someone has their wires crossed not unless the inland revenue are changing stuff but i havent heard anything about it
there aint much chance of me earning anywhere near that !! pmsl , i dont think its right hun ? i think someone has their wires crossed not unless the inland revenue are changing stuff but i havent heard anything about it 
Sassy Hassy
Well-Known Member
Anyone can register a Limited company, and it's not related to turnover - even if you're not actually trading. The £60K threshold (or thereabouts) is when you have to register for VAT, although if your accountant says it's advisable you can do it if your turnover is les than this.
I think you need to ask them why they feel you need to do this as it seems rather odd. It sounds as though they want you to go self employed and you can register as a sole trader to do this.
I think you need to ask them why they feel you need to do this as it seems rather odd. It sounds as though they want you to go self employed and you can register as a sole trader to do this.
I know we are in different countries but here in Aus it is not unusual at all to be a Pty Ltd company wehen self employed.
Here Pty Ltd have different tax rates and more often than not, it is more benefical to have one than not.
We have a scheme in Oz called workcover that covers accidents and injuries to employees. Self employed people can be deemed to be employees under this scheme unless they are Pty Ltd. Soi it can cost the employers a lot of money even when someone is suposed to be self employed and is injured in the work place.
Definately speak to a Qualified Accountant and get some advice that is tailored to your needs.
HTH
Here Pty Ltd have different tax rates and more often than not, it is more benefical to have one than not.
We have a scheme in Oz called workcover that covers accidents and injuries to employees. Self employed people can be deemed to be employees under this scheme unless they are Pty Ltd. Soi it can cost the employers a lot of money even when someone is suposed to be self employed and is injured in the work place.
Definately speak to a Qualified Accountant and get some advice that is tailored to your needs.
HTH
oey
Well-Known Member
Who were you told this by and why?
dee
supernatural geek
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thanks hun , i never knew that !! :green:
Cathie!
Well-Known Member
Isn't being a Limited Company to do with limited liability if you were to go bust, personal finances are seperate to business finances....surely this wouldn't be your concern as you don't own the salon, lease, overheads etc, you're a self-employed renter (by the sound of what you're sayng), so I don't see why you would need to be a Ltd Co.
Here's a little bit of info that might be helpful.
Set Up a Limited Company - Small Business Company Formation
Here's a little bit of info that might be helpful.
Set Up a Limited Company - Small Business Company Formation
I think if you are to become a limited company you have to have a Director and a Secretary.
Ruby
Ruby
nailsbydesign
Gadget Geek
You do have to have a director and secretary and hold an annual general meeting every year and you also have to register with Companies house too and send in annual accounts and pay for the privellage!!
poppy2
Well-Known Member
I am an accountant.
You can be a limited company but to do the accounts and the necessary paperwork will cost you quite a bit.
The limited status is often to help protect assets and reduce personal liability. you pay £19% tax on profits for the company. but you have a lot of legal responsibility and you need to be aware of a lot of things like how to pay yourself and get money from the company etc. All the money belongs to the company You can register as self employed and you do pay more tax but it will cost you less in accountancy fees etc.
You need to tell the Inland Revenue you are self employed within three months of becoming self employed or you get fined
You should go and see an accountant to get some advice and most accountants wont charge for first meeting.
Hope this helps
You can be a limited company but to do the accounts and the necessary paperwork will cost you quite a bit.
The limited status is often to help protect assets and reduce personal liability. you pay £19% tax on profits for the company. but you have a lot of legal responsibility and you need to be aware of a lot of things like how to pay yourself and get money from the company etc. All the money belongs to the company You can register as self employed and you do pay more tax but it will cost you less in accountancy fees etc.
You need to tell the Inland Revenue you are self employed within three months of becoming self employed or you get fined
You should go and see an accountant to get some advice and most accountants wont charge for first meeting.
Hope this helps
adelekeegan1
Chatty geek
When I ran the subcontractors payroll for a firm supplying specialist electricians they all had to become Ltd Companies to satisfy the Revenue that they were not employees of the Company. This was because they effectively worked for the Company all the year round though at different client sites. Each subcontractor had to invoice each month for his work done (Though I actually did iit for them.)
It sounds as though you are contracted on the same basis and I assume that you all pay your own NI contributions. The only thing that concerns me is why should be asked to do this now. The legislation has been in force for some years.
IF YOU WORK SELF EMPLOYED, AND WORK FOR THE SAME "BOSS" DAY IN DAY OUT, THEN THAT ISNT CLASSED AS SELF EMPLOYED.........YOU HAVE TO GO TO DIFFERENT PLACE OF WORK EACH DAY OR VARY IT DURING THAT PAY WEEK/MONTH#!!!
HAVE A WORD WITH THE INLAND REVENUE, THEY ARE VERY HELPFUL OR GO ON A 4 HOUR WORK SHOP WITH THEM, AND THEY WILL TEACH YOU THE FINER DETAILS.
I THINK YOU ARE TRYING TO BE HAD-OVER, OR THEY ARE TRYING NOT TO PAY P.AY.E AND SICK PAY ETC
HAVE A WORD WITH THE INLAND REVENUE, THEY ARE VERY HELPFUL OR GO ON A 4 HOUR WORK SHOP WITH THEM, AND THEY WILL TEACH YOU THE FINER DETAILS.
I THINK YOU ARE TRYING TO BE HAD-OVER, OR THEY ARE TRYING NOT TO PAY P.AY.E AND SICK PAY ETC
oey
Well-Known Member
I think we need to clarify if you are renting a room in a salon you dont actually have a boss as you are "your own boss" and purely renting space in side a salon to run your own company.
I know there can be a very fine line in this kind of situation like there is the case the construction industry, so i depends if you are being told what to do or make your own day to day decisions.
I know there can be a very fine line in this kind of situation like there is the case the construction industry, so i depends if you are being told what to do or make your own day to day decisions.
NAVIGATOR
Well-Known Member
It seems that quite a few companies are now using this loop-hole to try and avoid employment regulations in this country.
You say you work in a nails and beauty salon on a commission basis. Do you use your own tools and products or are these supplied by the salon?
If the employee is using the desk, tools and products supplied by the company then in effect they are employed by that company and as such should be on their books and being paid as an employee not a sub-contractor.
As I understand it, the inland revenue is now cracking down on this practice and employers who try to use this to try and get our of paying National Insurance & PAYE for what is effectively their employees are being stung with heavy fines and back-payment of unpaid PAYE.
You say you work in a nails and beauty salon on a commission basis. Do you use your own tools and products or are these supplied by the salon?
If the employee is using the desk, tools and products supplied by the company then in effect they are employed by that company and as such should be on their books and being paid as an employee not a sub-contractor.
As I understand it, the inland revenue is now cracking down on this practice and employers who try to use this to try and get our of paying National Insurance & PAYE for what is effectively their employees are being stung with heavy fines and back-payment of unpaid PAYE.
Susie H
Well-Known Member
DONT DO IT!!!!!!!!!!!!!!!!!!!!!!!!!
Me and Paul did it and you go from needing a book keeper at £300 per year to needing a charted accountant to sign of your books at a cost of £2 to 3 THOUSAND per year. You can not save this sum, by law you must use a charted accountant to do the books for a ltd company.
Me and Paul did it and you go from needing a book keeper at £300 per year to needing a charted accountant to sign of your books at a cost of £2 to 3 THOUSAND per year. You can not save this sum, by law you must use a charted accountant to do the books for a ltd company.
poppy2
Well-Known Member
Hey Susie H
Come and see me/ my company. Sure i can save you some of that money
And the bit about Ltd Companys accounts having to be done by Chartered accountants is not strictly 1005 correct but cant go into it all on here
Come and see me/ my company. Sure i can save you some of that money
And the bit about Ltd Companys accounts having to be done by Chartered accountants is not strictly 1005 correct but cant go into it all on here
Susie H
Well-Known Member
To late for me and mine hun, we got hung out to dry. :cry:
I would never go down that road again, sole trader for me from now on, I understand whats going on that way, but please do share with other geeks, thats one of the best things about this site, some one on here always knows the answer:lol:
