A limited company service with unlimited support for you

Transcription

1 A limited company service with unlimited support for you

2 Why form your own limited company? Hundreds of contractors form limited companies every day and at Danbro we ve helped more than our fair share of them, so you can be sure you re in safe hands. You should consider these reasons why you might want to join them in forming your own company. 1. For financial reasons By setting up a limited company, you will be running your own business, giving you complete control over your finances. It can also often be a more tax efficient solution for your needs, giving you the freedom to choose how much you pay yourself, plus the option of receiving dividends as a shareholder. 2. For security The finances of your limited company are separate from your personal finances, so your own liability is limited and your personal assets are safe. 3. For better business Limited company status with a trading name offers you an extra level of credibility when doing business. You even have flexibility over claiming expenses for such things as office costs, entertainment and IT equipment. 4. For flexibility Trading through a limited company also gives you options when claiming expenses, raising finance or making investment decisions.

3 Why choose Danbro? Total peace of mind Your finances are in safe hands with Danbro. We are fully audited and approved by some of the industry s most reputable independent bodies, and our team of 40 accountants and tax advisors are regulated by the Chartered Institute of Management Accountants (CIMA). Outstanding value We offer tailored services to suit the needs of your business, however our most popular service plans are Plan One, Plan Two and Plan Three. Prices start from just 85* per month and you can see full details of each plan on page 5. The personal touch You ll be given your very own personal accountant, who will be assigned to assist you in looking after your company s finances. That way, you ll always deal with the same person someone who knows you and knows your company. Service guarantee We are committed to the service we provide, however, in the unlikely event that we are responsible for missing an important filing deadline we ll refund a full month s fee. Getting started If you re still reading at this point, you must have decided that incorporation is the right option for you. So, congratulations, you re just a few simple steps away. In fact, we can usually incorporate your company within 24 hours. 1. Choose a name for your company. Within reason, this can be whatever you like. Although, it shouldn t contain any offensive or sensitive words. You can check on Companies House Webcheck to see if your chosen name already exists and whether it s too similar to another name and falls into the same as category. 2. Appoint your directors. There should be at least one and it can be you. Legally, a director should be 16 or over, not an undischarged bankrupt or disqualified from acting as a director. 3. Make sure you have a registered office. This is somewhere important documents can be delivered. It can be your home address or Danbro s, if you like. 4. We ll register your company with HMRC for PAYE, Corporation Tax and VAT (if required). Specialists Our specialism in the area of IR35 means you can have confidence in our expertise and our IPSE accreditation gives you the reassurance that we know the industry inside out. Danbro will take care of all the formalities, all the paperwork and all the hassle. Tax saving By choosing Plan Two or Plan Three, you will have unrivalled support to help reduce your tax bill. From an initial tax planning review through to a personal tax service, our aim is always to save you money. *prices subject to VAT

4 What you need to know Being a limited company director brings with it certain responsibilities. It s very different frombeing an employee, so there are certain things you need to be aware of. A limited company is a separate legal entity, which exists in its own right, and is subject to rules and regulations under company law. For tax purposes, each year a company will pay corporation tax on its profit. The profit of a company is the total amount of sales income earned less any business expenses incurred; usually calculated on a yearly basis. All the cash held in the company bank account legally belongs to the company. You as director (and employee) of the company, are responsible for managing the company affairs. The company will pay you a salary for acting in this capacity. As a director of a UK limited company, you will be legally obliged to complete a personal tax return each year. Danbro can assist you with this return. In calculating your personal tax liability, you may have to pay additional income tax on your dividend income. Under company law, as a director you are responsible for ensuring that the company maintains accurate accounting records to enable preparation of financial statements, as well as other returns for HMRC. Danbro will assist you with the preparation of these, but this assistance does not relieve you of the responsibilities as we are seen to be acting upon your instructions. You as the owner (shareholder) of the company will receive dividend income from the company s taxed profits. The frequency and amount of this dividend income is decided by the company s director(s). For tax purposes, the salary you receive will be subject to income tax and national insurance contributions. The dividend income you receive whilst not subject to national insurance contributions, will be subject to income tax once it exceeds 2,000. IR35. What it is and how it affects you As a freelance contractor, operating through your own limited company is a popular and legitimate way to run your business. Whilst IR35 does not prevent you from operating this way, you will need to understand how IR35 affects you. IR35 in a nutshell: IR35 (or Intermediaries Legislation to give it its full title) is tax legislation that applies to all freelance and contractor limited companies. IR35 applies on a contract to contract basis, not your company as a whole. IR35 allows HMRC to view your status as employed rather than self-employed if certain conditions are met. IR35 considers your status by removing your own limited company and if applicable, an agency out of the picture and looks to see if you, as an individual, are deemed to be an employee of your end client. If you work in the public sector, the IR35 status of your assignment will be decided by your end-client. If you are deemed to be employed under IR35, any contract income received is effectively taxed as though it was a salary and you will be unable to claim home to work travel and subsistence costs. If you are uncertain as to the IR35 status of your contract, we would advise you to have a contract review. Please contact your personal accountant who can arrange this for you.

5 A service you can account on... Service Features Plan One 85* Plan Two 105* Plan Three 135* Personal Accountant FreeAgent software licence We know that setting up your own business can be a hectic time. There s a lot to consider, especially when it comes to keeping on top of the admin. That s why working with Danbro can make it all so much easier. We ve devised three service plans, with three small monthly fees, that have everything covered. All you have to do is decide which plan suits you. Alternatively we also offer bespoke service plans to suit your circumstances if needed. Please contact your Danbro new business team for more details. Preparation & submission of Annual Statutory Accounts Preparation & submission of Annual Corporation Tax return Administration of monthly payroll for director Filing of Confirmation Statement** Complimentary Personal Tax return for 1 director*** Preparation & submission of quarterly VAT returns Tax Advice & Planning IR35 Contract Reviews Provision of Registered Office Facility Administration of monthly payroll for 1 additional employee Complimentary FreeAgent online accounting software licence. *All prices are per calendar month and subject to VAT **Companies House fee is not included ***If received before 5th October following the end of the tax year Accountants References (Mortgage, Tenancy, Character & Basic Visa) Bookkeeping Service (including sales invoicing) Monthly Financial Health Check

6 The Cashplus Business Account A new approach to Business Banking We ve partnered with Advanced Payment Solutions Ltd to offer you their Business Current Account designed specifically for small businesses and start-ups. Take time to assess your assets Financial Planning The Cashplus Business Account is the low cost alternative to High Street Business Banking. With UK based customer service, as well as 24/7 mobile and online account access, the account is the ideal low hassle way to manage your business finances. As no credit check is required, the account can be applied for instantly online, with the Account Number and Sort Code being available at the end of the application process for successfully verified customers. Simply apply online in minutes in order to enjoy the following benefits: No monthly fees Just one low annual fee of 69 No charge for inbound transfers or outbound Direct Debits No charge for paying in cash at 13,000 locations nationwide - including the Post Office No charge to use the card that comes with the account for purchases in the UK 24/7 Account servicing via telephone, online and mobile app UK customer support Monday to Friday 8am to 8pm and Saturday 9am to 4pm Applying through us will guarantee that you are tracked as one of our clients, which will ensure that your application is processed as smoothly as possible. As long as your ID and address are verified during the online application process, you will receive your Account Number and Sort Code instantly. Alternatively you might be asked to provide paper documents prior to your account details being provided. P P P P Simple online application Instant online decision Account details available to accepted applicants in minutes No credit check required to apply Danbro Financial Planning Danbro Financial Planning offers specialist independent financial advice to limited company directors. Our aim is to guide you through the maze of financial services and products to help you achieve your personal goals. We use cutting-edge award winning software to enable you to view all your investments, pensions and bank accounts in one place through your PC, laptop, tablet, smart phone or other mobile device anywhere, anytime. So whether you want to protect your family or business, start a new pension or review your current retirement plans, save for a rainy day, invest a lump sum or you need a mortgage, Danbro Financial Services is here to help. Pension Planning Relevant Life Policies (tax-efficient life cover for directors) Business Protection Family Protection Critical Illness Cover Income Protection Private Medical Insurance Personal savings and investments Investments for companies Mortgages Subject to terms and conditions. Accounts available to applicants aged 18+ years and being resident in the UK and/or businesses being based in the UK. Cashplus is issued by APS Financial Ltd (AFL) pursuant to license by MasterCard International Incorporated. AFL is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. Cards are serviced by Advanced Payment Solutions Ltd (APS) which operates the card on behalf of AFL. AFL & APS registered address is 6th Floor, One London Wall, London EC2Y 5EB. Registered in England and Wales under company numbers & respectively. Credit facilities are provided by APS and are subject to approval with account remaining in good standing and continuing to meet APS' credit criteria. APS is authorised and regulated by the Financial Conduct Authority for consumer credit activities (Registration No ). To arrange a full financial review please contact Danbro Financial Planning on or chris.james@danbro.co.uk * Danbro Financial Planning Limited is an appointed representative of the Sense Network Limited, which is authorised and regulated by the Financial Conduct Authority.

7 Make sure you re fully covered Now that you are operating your own business you will need to consider whether you need, or are indeed required, to take out any business insurance. You should review your new contract as many agencies/direct clients have a mandatory requirement for professional indemnity insurance and most will insist on cover for employers liability insurance and public liability insurance. Protect your business for 25 per month* Danbro can provide business insurance policies for just 25 per month*. Cover includes: Professional indemnity insurance This provides essential protection should a claim be brought against you, by a client, due to a problem with work you have done. Public liability insurance Comprehensive protection against claims for accidental injury or damage to property. Employers liability insurance Valuable protection against claims arising from employees regarding injury or disease. Protect yourself for per month* As a freelance consultant you will be aware that you no longer have many of the benefits of being an employee to fall back on and a personal accident can have a serious impact on your ability to earn. Personal accident insurance provides cover for accidental bodily injury which results in death, or loss of limbs and eyes, or permanent disability and temporary disability within 24 months of an accident which is not an intentionally self inflicted injury, does not result from illness and which occurs whilst performing occupational duties, including commuting. Danbro can provide personal accident insurance for just per month.* For more information call your Danbro new business team on *Prices include Insurance Premium Tax (IPT). Restrictions apply. FAQs What are my responsibilities as a company director? Basically you must use your skills, experience and judgement to make the company a success. You are responsible for filing returns to Companies House and checking that your tax, VAT and national insurance contributions are recorded, prepared and paid to HMRC on time. Don t worry, your personal accountant will help with all these things. How do I withdraw funds? As a director and employee the company can pay you a salary. As a shareholder you can also be paid a dividend. You decide how much you take unless your contract income falls within IR35, in which case you follow HMRC s deemed salary calculation. Again, your personal accountant will help ensure you maximise your tax efficiency and get the most out of the work you do. Do I need a business bank account? Any money you make belongs to the company not you so, yes, you do need a company bank account for which you will have full control. Our recommended company bank account is Cashplus Business, the low cost alternative to high street business banking. We can help set you up. Or, of course, you can choose your own bank entirely. Where should I have my registered office? Most people use their home address. However, if you don t want your private address made public and don t want important correspondence overlooked, as your accountants, you can use ours. By law you must display the registered address on all company documents, including invoices and your website, if appropriate. Do I need business insurance? Some recruitment agencies and clients will insist that professional indemnity insurance is in place along with employers liability insurance and public liability insurance. We can help ensure that you re covered, so just ask.

8 It pays to be a good colleague For every colleague or friend you recommend to us you could enjoy the benefits of money off your fees* *Terms & conditions apply Head Office: Jubilee House East Beach Lytham St Annes, FY8 5FT 08/1832 MANAGEMENT SYSTEMS 28/03/18