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Need some advice - Tax + Registering as a Company

Discussion in 'BlackHat Lounge' started by supermat007, Nov 3, 2008.

  1. supermat007

    supermat007 Regular Member

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    Im getting tierd of having money come from all over the place and all accounts in my public emails and theres a few other bits.

    So I was thinking of registering as a company just so I can have everything centralized and be taken more seriously and get a few benifits from the networks etc.

    Im in the UK and have no idea where to start. Been doing a bit of looking on the net and found this

    Code:
    http://www.companiesmadesimple.com/Silver_UK_Company_Formation.html
    Does that look right?

    Also how is tax sorted out?

    Is this even a good idea or just a waste of time?

    I'm currently making couple hundred a day from various sources put together. But have some more plans lined up. Wondering if I should do this before I get more involved?

    Thanks guys and girls

    :)
     
  2. jammie

    jammie Jr. VIP Jr. VIP Premium Member

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    I'd take the time and learn accounting yourself.

    Believe me its a kick in the teeth when they take 18 hours minimum and you're paying atleast £200/hour. Thats when everythings in order and nice and neat too ...

    All you need is a memorandum of association and articles of association, and to register with a company registrar (much like a domain). once thats done you're good to go into a bank and setup a business account etc. and use your new, legal entity to make purchases and everything.

    Just remember. You pay tax at the end of the tax year, and its not PAYE. So that car you want, all you petrol etc. are now "business expenses". Thus you're saving 40% straight off ;)

    Just remember to be honest and declare them ...

    oh and i think some weird VAT stuff applies too, can't remember what tho, i'd talk to someone who knows more.

    It's always a wise move having a business though!
     
    • Thanks Thanks x 1
  3. supermat007

    supermat007 Regular Member

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    hmmm yeh.

    Thanks for the tips Jammie

    I know this might sound stupid but I didnt relise there was so much more involved such as the accounting.

    I thought it was..

    register name
    get all details and numbers etc
    sign up to companys using the new details

    then your done!

    hmmm

    Also, i read things like "if company goes bust or in dept etc you not responsible / you are, depending on somethings etc"

    What I dont understand is if your just using it as a front(?) how can you go bust or in dept?

    Anyone here registerd as a company to use for signing up to networks? Any benifits or anything etc?

    Hmm

    Thanks
     
  4. jammie

    jammie Jr. VIP Jr. VIP Premium Member

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    you can buy stuff using company credit etc.then if you can't afford repayments, you go bust, like everyone else. but personal items won't be taken don't worry.

    Like if you bought a factory and it was £30,000 a month or something and you weren't making that much to cover it, you'd go broke eventually.

    Of course, in IM its different as theres usually alot less expenses. But companies weren't made for IM so they just apply to everything really.

    Accounts have to be submitted if your a LTD, and have to be made public if you eventually go into a PLC. They are a pain in the tits according to my friend who had a business.

    But because of them, you save *ALOT* of money. But if you can do a quick SAGE course in accounting on a night time at your local college or something for £200, i'd do it.

    I can do the basics, but they get really really complicated later on. There are alot of "tricks" aswell, but they get even harder!

    Look into balance sheets and profit & loss accounts, theres a few online that should give you an idea of what needs to be done etc.
     
  5. oldenstylehats

    oldenstylehats Elite Member Premium Member

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    Preface: I'm only vaguely familiar with UK corporate law and finance ...

    ... but unless book-keeping in the UK is vastly different than book-keeping in the US or you are not making enough money to justify the expense, it is always best practice to work with a certified public accountant.

    If you do decide to incorporate, I'd get free consultations with a few local accountants and lawyers. These consultations will consist of you telling them what your needs are. As with all sectors, there are predatory accountants and there are good accountants. Find one that is within your budget and feels right to you. By "feels right," I mean that you should avoid dealing with individuals or corporations who try and hard sell you or who speak to you condescendingly. This is a common experience for new business owners as the remuneration for small accounts is minimal at best and in many cases you'll be dealing with account managers (professional sounding name for a salesman) who eat off commissions and not the accounting team themselves.

    Luckily, small accounts are the bread and butter of many smaller accounting firms and they are often willing to scale their rates based on your needs. It should also be noted that unless your operating at a high volume and have a large number of transactions, invoices, expenses, etc that you need to account for, you can generally get away with seeing your accountant once every month or even every other month. These meetings are generally very brief and consist of you bringing in a folder of receipts and invoices, saying, "Hello," relaying any concerns or peculiarities, shaking his/her hand, and leaving.

    While, as jammie said, one can certainly learn the basics of accounting through books or night classes, there is a reason why accountants get the education that they do and are tested to the extent that they are; real accounting is complicated. Beyond being able to call many extremely successful accountants my personal friends, I've also had a lot of experience in both starting and growing new businesses. When I first started, I wanted to do everything myself for a lot of different reasons, not least of which was the cost. What I quickly discovered after taking the leap was that accountants tend to pay for themselves in one or two events over the course of any given year. Even if you get a BA (or equivalent) in accounting, in 9/10 cases you won't be as familiar with business accounting as a working accountant with 3-4 years of experience under his/her belt.

    I could talk about this topic for hours, but I guess what I'm trying to say is that I would never go into a new business venture (again) without first protecting myself by bringing the proper people on board. If you don't do it now and you end up staying in business for 5 or 10 years, you probably will then. There are people that will disagree with me and that's fine, but developing strong, long-term relationships with experts is a significant part of doing ANY kind of business successfully.

    </rant>