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Self-employed or setting up a Limited Company? - Carers UK Forum

Self-employed or setting up a Limited Company?

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Hi,

I'm considering setting up in business (techy geeky stuff like game console repairs, programming, etc) and am wondering which way to go. I've spoken to the Carer's Allowance people and they've given me a rundown of how the system works for self employed carers.

However, if I set up a Limited Company, I'm employed by that company (despite being its MD). So I'm wondering how it works under that scenario. Has anyone here any experience of either approach? I'm trying to find out how much I'd lose, how, and why.

My wife suffers from non-epileptic seizures with some 'interesting' side effects (she can become temporarily violent or aggressive) which doesn't reallly allow her to be employed by anyone. So one approach would be this avenue where she could get back into work by helping me out with the business.

Thanks.
I think that the best thing you can do is call the helpline again.

It'd be okay us trying to advise you but there is a chance that our advice might be wrong (especially with the spending review) at least the staff at the helpline are more aware of all the new stuff and how it'd apply to you
Self Employed, you set up NI by direct debit, should you fall ill, there is no statutory sick pay, signing on is also problamatic. You must ensure a pension is in place, if your turnover is over the set limit then you must register for vat. Simple tax returns via a book keeper. You are liable for all business debts.

Limited company, not viable with 2 people, you need articles of association, a qualified accountant, you can be fined if tax returns are not audited. You will pay NI as employer and as employed. You will have to have pensions by law even if only stakeholder ones. Set up paye, and be responsible if you do not pay it, even for yourself. Vat registered, the list goes on.

Both choices will affect benifits, maybe you could get a start up grant, see your local chamber of commerce, Start self employed and change only when it gets to big to stay that way. Good luck.
TickledPink,


I would think very carefully about going self-employed for the reasons mentioned above.

You will find all the information you are looking for here: Enterprise Allowance scheme and business link

http://www.direct.gov.uk/en/Pensionsand ... G_10027003
http://www.businesslink.gov.uk/bdotg/ac ... 1073858805

Don't forget Carers are supposed to receive special treatment from the jobcentre, if they want to combine work and caring.
Good luck
Self Employed, you set up NI by direct debit, should you fall ill, there is no statutory sick pay, signing on is also problamatic. You must ensure a pension is in place, if your turnover is over the set limit then you must register for vat. Simple tax returns via a book keeper. You are liable for all business debts.

Limited company, not viable with 2 people, you need articles of association, a qualified accountant, you can be fined if tax returns are not audited. You will pay NI as employer and as employed. You will have to have pensions by law even if only stakeholder ones. Set up paye, and be responsible if you do not pay it, even for yourself. Vat registered, the list goes on.

Both choices will affect benifits, maybe you could get a start up grant, see your local chamber of commerce, Start self employed and change only when it gets to big to stay that way. Good luck.
I disagree, setting up a limited company when you only employ yourself or other self-employed contractors as your workers is a doddle as long as you can count 2+2=4 , its a simple paper exercise using standard DIY forms, VAT registration only applies to businesses with substantial turnovers, you have limited liability to £1 if things go belly up, pensions are irrelevant, and a six year old child could do the online company accounts. If there are two of you, make both of you Directors, just retain the majority shareholding and control. There is loads of free advice available, start up grants even. Recent legislation has made companies easy and cheap to set up and run, or close. But remember the standard advice if you are very ambitious: it takes two bankruptcies and a fire to make a successful corporation.