Looking at being a business consultant?
This is an area we specialise in.
There are questions you may be asking, such as, should I be a Limited company? Should I be VAT registered? How should I pay myself?
If you intend to have a profit level over £25,000 a year then you would save over £1,300 a year in national insurance by being a Limited company.
If you turnover more than £81,000 you will have to register for VAT. If your turnover is lower than this level you may still benefit from registering. If you are working with VAT registered businesses they should be happy for you to invoice plus VAT. You would therefore be able to charge VAT on top of your day rate. You can then either claim back input VAT on your expenses or join the flat rate scheme where you still charge 20% but pay over a lesser percentage to HMRC.
If this is your only source of income you should run a monthly payroll to ensure you are using your personal allowance and are getting a state pension year. You can pay yourself above your personal allowance by way of a dividend.
If you would like some further information we offer free, no obligation advice. Call Kayleigh on 07525 421 454.