Re: Thinking about going "limited", need advice...

On 29 Jan 2006 13:11:13 -0800, "Troy Steadman"
<troysteadman@xxxxxxxxxxx> wrote:

>Simon Earl wrote:
>> Hi,
>>
>> I'm thinking about going down the Ltd Co route for a new busienss
>> venture. The reason is partly for protection, but more
>> importantly for tax reasons. I am told that one can take income
>> from the company in the form of "dividends". Could anyone here
>> explain the basis of this method please?
>
>Shareholders in a company withdraw profits as dividends. Profits are
>(simplistically) all Income less all Expenditure and Tax.
>
>> Also, if the company receives a holding deposit on behalf of a
>> customer/tenant/client and provided there are no legal contraints
>> in place, is it possible to then take that deposit from the
>> limited company (as a director) and hold it personally, until the
>> company requires it, without paying tax on that transaction?
>
>"Holding deposit"? If you are holding a deposit you must hold it rather
>than distribute it?
>
>> Finally, what sort of accountancy fees could one expect for a Ltd
>> Co with under £100k p/a turnover, one director + secretary but no
>> PAYE scheme (income taken purely in div's).

I think that might be deeply problematic.

>
>It depends on loads of other considerations. Talk it over with an
>accountant or post more details here, because you aren't making a lot
>of sense.
>

Agreed.

Anyway an accountant will charge according to the work he has to do,
the number of transactions, and the state in which the records are
presented to him.

Think about £2k +/- 1k IME.

DG

.