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  1. #1
    Non-Member crunchi's Avatar
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    Thinking about UK Limited company

    Hello i'm thinking about limited company in england and i would like to know something about the taxes from first hand.. What is the VAT rate, how is it whit paypal taxes, adsense taxes..

    Accounting requirements: Can i just make a report in quickbooks online and send it to the government?

    What if you use your business bank account for private things and you're not from UK, i think that's not taxable, or?

    tnx
    and
    regards,
    crunchi

  2. #2
    SitePoint Wizard bronze trophy
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    Quote Originally Posted by crunchi
    Hello i'm thinking about limited company in england and i would like to know something about the taxes from first hand.. What is the VAT rate, how is it whit paypal taxes, adsense taxes..
    VAT is 17.5%. There's no such thing as adsense taxes, paypal taxes - your company (generally) gets taxed the same on everything and anything it earns.

    Accounting requirements: Can i just make a report in quickbooks online and send it to the government?
    If you want, as long as you are a small business. Otherwise you need to be audited.

    What if you use your business bank account for private things and you're not from UK, i think that's not taxable, or?
    You can't just withdraw personal money from a company bank account - remember, if you set up a limited company, you are merely an employee of the company and hence have to collect an official salary or get paid in dividends.

    It sounds like your next stop should be to set up a meeting with an accountant who knows all about company law and accounting. Setting up a limited company is not something you should do lightly - there's a lot of legal responsibility.

  3. #3
    Non-Member crunchi's Avatar
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    what i ment was that my bank account would be setuped to two parts, one part for company things and one part for personal things.. i would need first part only for things that i earn thru company-- webdesign and the second part for adsense checks, paypal earnings...

    regards

  4. #4
    SitePoint Addict Olate's Avatar
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    If you're earning separately from the company you need to register as self employed and then you will be required to fill out a self assessment form each year. Everything you need to know is on http://www.businesslink.gov.uk and you can order a book form of the website. They also provide free advice over the phone/in person should you want to go over it with someone (which is a good idea). HM Revenue & Customs are also very helpful and you can phone and talk to them. See http://www.hmrc.gov.uk

  5. #5
    SitePoint Guru worchyld's Avatar
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    Ask to go to the HM Revenue and Customs business guide classes, there is stuff there on self assessment taxes, company returns, etc.

  6. #6
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    I did this recently and speaking to an accountant is the best way to go. A Ltd is not the best solution for everyone, though it can save you a lot in NI and tax if you are clever.

    I found so far the VAT office are a bit wary. They want me to provide evidence of Uk companies I deal with so they can access my application. Since although we are way over the threshold most of our customers are advertisers based outside the EU. So we would be a net gainer of VAT. i am not fussed either way.

    You can also have the company buy assets from you and so it owes you cash etc. But it can get a bit confusing so an accountant is a must.

    We use Sage for the accounts and Sage Payroll for the...payroll. Both are easy to use once setup...though a little training from our accountant helped a lot.

    Also you should keep your business and personal banking separate...it will just lead to a lot of confusion and probably get you in trouble.


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