[Gllug] OT: umbrella companies for contract work

[t.clarke]

Just to add to some info on Limited Companies:-

1) If you buy 'off the shelf' company with 'kitchen sink' Memorandum & Articles
you do indeed get no choice of name.    However,  it is dead simple and cheap to
change the name of the Company   - simply file a form and a copy of a special
resolution at Companies House together with the appropriate fee (10 quid from
memory) and you get a nice new Certificate.   Finding a a suitable name is easy
too  - Companies House have a free web search for name, so you can be sure you
don't pick one that already exists.  There appear to be no restrictions to using
a similar name to anything pre-existing, providing you do are not in the same
sort of business and could be accused of 'passing off'.

There is at least one outfit the web that will form a company for abt 40 quid
- I presume this includes yr choice of name.


2) 'Small' companies do not need an Audit - but Accounts still have to be
prepared and filed at Co's House.  An Annual Return also has to be filed  -
which can now be done on the web for a tenner.  A dormant company still needs
a balance sheet filed every year and an annual return fee paid.


3) A company does not have to be 'wound up' when no longer needed; involving
accountants.    Simply pay out any undistributed profits as a dividend or
pay yourself a fee equal thereto.   Pay also a fee amount equal to the
paid up share capital,  so that the balance sheet comes to down to zero eg:

Profit and Loss acount    - 10
Share Capital               10
                           -----
                            nil

Then simply apply to Companies house to have the company 'struck off'  -
small fee involved.



These days running a Ltd Company is no big deal and there can be distinct
advantages (not least of which is limited liability).  The taxation situation
is muddier these days thanks to recent changes in tax law and the change in
ACT credits  so wouldn't care to comment on the pros and cons of that!


Tim
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