Author Topic: Setting up as a "Limited company" Electronics engineer  (Read 47436 times)

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Offline ebastler

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #25 on: March 03, 2024, 06:26:25 pm »
I  confess to not being well up in this financial  stuff [...]
From the above, it looks like being a "ltd company" costs £90 per year? [...]
i reckon one would get more work offers if going "sole trader" or "ltd company". [...]
then do you have to close down the "sole trader" or the "ltd company"....and if so, how much does it cost to close it down.

Pardon me -- but haven't you run your own Ltd. company before, as its director, 12 years ago or so?
 
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Offline FaringdonTopic starter

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #26 on: March 03, 2024, 07:11:08 pm »
Quote
It costs actually nothing - all you need to do is register as self-employed with HMRC ( Tax office). You don't need to register a trading name.
Thanks, if it costs nothing then i will register as a sole trader.
Though some posts here talk of £500-£1000/year accountancy  fees.
And doing VAT returns every quarter. (even if you dont buy anything)
Use of accountancy software which may cost much, and be very hard to use for the non-financially trained.

'Perfection' is the enemy of 'perfectly satisfactory'
 

Online mikeselectricstuff

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #27 on: March 03, 2024, 07:33:55 pm »
Quote
It costs actually nothing - all you need to do is register as self-employed with HMRC ( Tax office). You don't need to register a trading name.
Thanks, if it costs nothing then i will register as a sole trader.
Though some posts here talk of £500-£1000/year accountancy  fees.
And doing VAT returns every quarter. (even if you dont buy anything)
Use of accountancy software which may cost much, and be very hard to use for the non-financially trained.
Freeagent is £165/year, less some introductory deals, and there are some free offers if you're with certain banks ( probably those that charge for business accounts, so likely best avoided)  - I think some accountants also offer it free if you use them, or it's part of their package.
You don't need any significant financial training to use it & can try free for 30 days.
For a simple sole trader setup it is pretty easy , and recent-ish things like 100% Annual Investment allowance allows you to treat equipment purchases the same as consumables so you don't have the hassle of accounting for capital write-downs etc.
« Last Edit: March 03, 2024, 07:35:30 pm by mikeselectricstuff »
Youtube channel:Taking wierd stuff apart. Very apart.
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Online themadhippy

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #28 on: March 03, 2024, 07:40:11 pm »
Quote
Though some posts here talk of £500-£1000/year accountancy  fees.
only if you use an accountant. Its simple enough to do yourself ,just keep a record of everything you've earned and everything you've spent , a spreadsheet makes life simple.One thing to remember is to  keep your records,including receipts/invoices  for at least 6 years.
 
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Offline FaringdonTopic starter

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #29 on: March 04, 2024, 09:13:14 am »
Thanks, OK, supposing i (or anyone) jumps in and becomes a sole trader or a "ltd company".
...Then supposing i can't get the hang of the accountancy software, and the tax people then fine me goodness knows how much etc etc.
I mean already you have (kindly) used a term "financial write down" , which i dont know what it means.
So supposing  i jump in, and find that its just  costing  too much, the accountant wants £5k and if i dont pay him ill get fined £10k etc etc.........how do i then get out of it?, and how much does it cost to get out of it all?
« Last Edit: March 04, 2024, 10:31:07 am by Faringdon »
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Offline jc101

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #30 on: March 04, 2024, 09:28:54 am »
If a Ltd company, the debts are against the company.  So the company either pays up or is declared insolvent and the creditors can go after anything the company has.

If sole trader, you have to pay the debts.  If you can't, you declare yourself insolvent.  This has long term implications (min 5 years), and doesn't mean the debt is written off. 

Best source of info for both, find an account and have a meeting to discuss your situation and what is the optimal solution for you.  They will also cover the risks.  Often accountants will offer the first consultation free, on the presumption you will use their services.  If they charge, pay up and listen to the advice.

Depending on how you get work, in the UK there is also IR35 to consider - you can google that.  Again an accountant will know the gory details.
 
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Offline FaringdonTopic starter

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #31 on: March 04, 2024, 10:33:52 am »
Thanks, yes, "inside or out" is what you get asked constantly.
I dont see how i would be liquidated though, as i wouldnt be buying loads of stuff.....so i wouldnt get in debt.........it would just be for me working for  other people and them paying me...
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Offline jc101

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #32 on: March 04, 2024, 10:35:39 am »
If you are, in effect, only selling your time - talk to an umbrella company. 

Bring that up when to speak with an accountant.
 
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Offline jonpaul

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #33 on: March 04, 2024, 10:52:59 am »
Beware, Regulatory compoliance, product liability, insurance,

Suggest to consult attourney specialized in this area.

j
Jean-Paul  the Internet Dinosaur
 
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Offline FaringdonTopic starter

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #34 on: March 04, 2024, 09:16:45 pm »
Quote
Beware, Regulatory compoliance, product liability, insurance,
Thanks yes good point...though  we are more at the stage of working for a company, than for consumers, so we would expect their insurance etc would cover us, even though we are " sole traders"?
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Offline jc101

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #35 on: March 04, 2024, 09:28:09 pm »
"we" are not sole traders as a single entity, "you" could be a sole trader.  If there is more than one of you, there is the option of an LLP too.

I have to carry, or my Ltd company does, a minimum of £1m professional indemnity insurance.  It's mandated by the clients T&C's.  One wanted £5m, they conceded £1m would do after challenging it.

If you design anything, then professional indemnity insurance is a good thing to have.  If you are simply providing labour to assemble a complete kit of parts given to you, then probably not so much.
 
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Offline ebastler

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #36 on: March 04, 2024, 09:35:52 pm »
If you design anything, then professional indemnity insurance is a good thing to have. 

Liability and warranties can always be defined in the contract. It's a matter of negotiation, I'd say. But as you described, the customer may just not be willing to sign a "best effort, no warranty, all liability rests with the customer" contract.

And even in the best case it will be hard to negotiate away liability in case of neglicence, so some type of indemnity insurance will probably be required.
 
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Offline jonpaul

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Re: Setting up as a "Limited company" Electronics engineer
« Reply #37 on: March 14, 2024, 12:32:43 pm »
Hell again:

The lawyers use a boilerplate and keep def of liab as wide as possible.

  contracts are biased towards the writer eg large firm, customer. We mad eour own T&C exactly to limit liab in any proposal.

 So, depending on the venue and legal advise, an LLC, indicvidaul or small firm has unlimited liabilty for sales or services to anothe firm.


PLEASE CONSULT AN LISCENCED ATTOURNEY AND COMPLIANCE FIRM IN YOUR LOCATION.

THIS IS NOT LEGAL ADVICE WE HAVE NO LIABILITY

 Good luck

Jon

Jean-Paul  the Internet Dinosaur
 
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