Setting up as a "Limited company" electronics engineer

[Flyback]

Hi,
Do you know of any good ways to set up as a "Limited company" so that a company can pay me as a "supplier".
Details of any costs etc much appreciated.
I always had others do it for me in the past.

Now an actual company wants me to get a "Limited company" set up.
So they can pay me for PCBs delivered.

 

[Ian Rogers]

Why a limited company? You can just setup as a "sole trader". If they need you to be VAT registered, then set up a little meeting with an accountant ( You'll need one if you go limited ) Mine cost me about £100 for him to set it all up.
Try the sole trader route first as the VAT isn't easy to get at the moment the backlog is so far back, mine took 9 months to get..

You do not need to be VAT registered to trade with bigger companies.

 

[Flyback]

Thanks, is it the tax office you go to to get sole trader status?
Is there a fee when you finish the job, to get out of it?

 

[Nigel Goodwin]

Thanks, is it the tax office you go to to get sole trader status?
Is there a fee when you finish the job, to get out of it?

Why would you want to get out of it?, just continue as a 'sole trader' - as Ian said, there's no requirement to be a Limited Company, and there 'should' be no requirement to be VAT registered either. Generally you have to exceed a certain turnover to be able to become VAT registered, and there's a higher turnover figure that if you exceed you HAVE to become VAT registered.

 

[MaxHeadRoom78]

I am in Canada, I did the registration myself, it was relatively easy, long time ago, so I don't remember too many details, you can then act as an employee of the Co.
The registration office informs you if the name has already been registered locally.

 

[Ian Rogers]

Thanks, is it the tax office you go to to get sole trader status?
Is there a fee when you finish the job, to get out of it?

You can get a business online. All you need to do is register the business and start trading.
I don't think there is any payment if you do it yourself. But as I said, book a visit to a decent accountant and he will tell you exactly what to do.

 

[Flyback]

Thanks, i imagine this is on the gov.uk website?

 

[Ian Rogers]

Pass.. I have an accountant.. Both times I needed to do this, I left it to him. They know what to do and £100 is nothing compared the the hours wasted doing it yourself. If you haven't an accountant it will be dearer

 

[Wp100]

so that a company can pay me as a "supplier".

So they can pay me for PCBs delivered.

It all depends, if its an irregular payment for relatively small amounts eg <£1k any company can pay you direct as a private individual, you do not Have to be a business.
However if its larger amounts on a more regular basis then you need to register as a business otherwise its the tax office that will be after you and your bank might also start asking about sudden large deposits in a priivate account.

Equally you say you are supplying PCBs then assume you must have reasonable costs which you can offset, unless its just the design of the pcbs ?

I always had others do it for me in the past.

That sounds a bit concerning, you really should be on top of what you are putting your name to.

An Accountant is suitable, but generally more for dealing with higher turnover, ask around for recommended qualified bookkeepers who can offer a good service for smaller business like a sole trader with more modest turnover.

You can see here at the .Gov site which states you can earn £1k a year and if you follow their links fuller details of self employment.
https://www.gov.uk/income-tax-rates

However from what you have said, might be worth checking you do not already have other companies etc still "open" that you could use ??