accountant

[clueless]

Hi everyone!

I am planning to set up a limited company as working full time as a locum now- was just wondering if it makes any difference on what kind of accountant you get eg. accountants specializing within the pharmacy world oppose to one that doesn't. - this is all new to me

[johnep]

Reason for setting up as a limited co is to reduce tax. You pay yourself the minimum wage and take rest as dividends which are taxed below PAYE.

I would suggest using the specialist accts who advertise evert week in the PJ.

Accounting requirements are much more severe than trading as sole trader.
johnep

[Fleegle]

Reason for setting up as a limited co is to reduce tax. You pay yourself the minimum wage and take rest as dividends which are taxed below PAYE.

I would suggest using the specialist accts who advertise evert week in the PJ.

Accounting requirements are much more severe than trading as sole trader.
johnep

Exactly. Unless you plan to become an employer, or think you might go into so much debt that you could lose your house, a limited company may not be worth the effort. Sole trading as a locum generally works for you better, in my opinion. The difference between tax on dividends against a straight return with allowance claims is key. Suggest you talk to a couple of accountants and take it from there.

Remember, however, that your turnover as a company which employs one person will be so low, by accountants' comparisons, that they can, and do, charge you the earth for not very much.

Fleeg.

[clueless]

yeah, I realize that as I didn't really want to go through all the hassle of setting up a limited company. However, I am going to be locuming in a hospital next month and got told I must be a limited company- which Im a little confused about.

Ill hopefully be able to speak to an accountant sometime this week about it and see what he says. Thanks!!

[johnep]

Probable something to do with liability as damages against you could in theory be a million or more. I would think that what they really meant was that you should have limited liabiility cover, available from PDA who could advise you.
johnep

[clueless]

I already have pda insurance cover, so it's definitely not that. I asked them today and the agency just said thats the only way I will get paid.

Spoke to some accountant companies today and they're so expensive, but told I am better off being a limited company.

[johnep]

If hospitals will only pay Ltd cos, the wonder how oddjob men gardeners etc are paid.
johnep

[DavidS]

If hospitals will only pay Ltd cos, the wonder how oddjob men gardeners etc are paid.
johnep

Doubt all the costs of running a Ltd would be worth it for just one job. Tell them to employ you for the period of the "locum" or you can't do it as they can't pay you.

[johnep]

When I was made redundant in the 80s, I worked as a 'supply' teacher at a local school. They treated me as an employee and deducted PAYE. I seem to remember claiming that back some time later.
johnep

[clueless]

If hospitals will only pay Ltd cos, the wonder how oddjob men gardeners etc are paid.
johnep

?what does that mean??

I am getting a really good rate for doing it plus its a block booking can't get myself to say no to it!