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Limited company services - FAQs

A private limited company (LTD) is “an individual legal entity which is separate from that of its officers” A limited company has its own assets and liabilities, profits and losses. The liabilities are limited to the company – in other words, the owners are protected from financial liability should the company encounter any difficulty. This is different from that of a sole trader or partnership, where the assets and liabilities of the business belong to the individuals.

Forming a LTD company takes a matter of hours (4-6) and this is all you need to accept a contract, Sidekick can take care of this for you with just a suggestion of a name and small amount of personal information.

Sidekick take care of the formation of your Limited Company and the set-up process free of charge.

To accept a role, you will need a LTD Company in place as a minimum, to be paid you will need a Limited Company bank account which Sidekick can arrange for you to be opened instantly over the phone. You may also require Insurance to be in place and we can help with that too. Click here to visit our insurance partner, Kingsbridge.

Not very expensive at all, you not only stand to retain more of your earnings working via a Limited Company in most circumstances, but we offer a fixed monthly fee with no nasty surprises or additional costs. These start at £75 per month.

IR35 is a piece of tax legislation designed to stop “disguised employees” from benefiting from the tax advantages available to limited company contractors. If you pass you are able to draw dividends and claim travel and subsistence expenses. If you fail the IR35 test you incur additional National Insurance and tax costs so it is important that you review your IR35 status for each assignment you enter into. Click here to see our additional IR35 guide or give us a call for more info.

Professional Indemnity Insurance, Employers Liability Insurance and Public Liability Insurance may all be required as part of the terms of your Contract. We would heavily recommend you have insurance in place to protect you and your business should any claims be made against you. Click here to visit our insurance partner for more info.

No. Since the 6th April 2008, it is the choice of the Limited Company Director whether or not to have a Company Secretary. It is no longer a mandatory requirement; most new single person companies don’t have one as there is no work for them.

Yes, although there is always criteria to consider being a contractor doesn’t stop you getting a mortgage. We work alongside professionals who are experts at Contractor Mortgages and can guide you through the process each step of the way, we find if you went to a high street bank directly they may expect at least 2 years’ worth of records for your Limited Company to even consider you, this isn’t the case when contacting a specialist directly.

In short no, the intuitive software we use (FreeAgent) provides an App that enables you to take a picture with your phone and upload straight to your Company records easily. Once we have a clear copy of these you can store the receipt if you want elsewhere or simply chuck it away. We would always advise that you do keep records of expenses (receipts etc) somewhere at home even if it’s just in an envelope/shoebox somewhere out of the way.

Typically, if you went to your existing provider or a high street bank then you would expect a 2-3-week turnaround for an account. With Sidekick and our Partner Cashplus a bank account can be opened in a matter of minutes. Click here to visit the Cashplus website.

Sidekick take care of the formation of your Limited Company and register your business for PAYE & VAT for free! (Some companies charge as much as £100 for each of these).

MTD stands for Making Tax Digital. By 2020, HMRC’s Making Tax Digital (MTD) initiative will mean that businesses and individual taxpayers can access their own tax affairs online via digital tax accounts. At Sidekick, our cloud based software is HMRC and MTD compliant, allowing you to keep on top of accounts and liabilities.

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