Frequently Asked Questions about Limited Companies
We have put together all of the commonly asked questions from contractors enquiring either other the phone or via email, including some of the words and phases that you may experience while researching contractor accounting in general.
How much will I save?
Your actual pay can fluctuate based on your circumstance however our online calculator can give you a rough idea of how much you will receive, alternatively you can contact us on 0800 25 26 40 who will be able to provide you with an illustration.
Why wouldn't I be able to operate as a Limited Company?
To use JSA’s Express or Liberty Limited Company Service, you need ideally to be a contractor working on a short term or fixed term contract that is not caught by IR35. Being caught by IR35 is not necessarily a bar to opening your own Limited Company, but it will affect the way you run it.
Are there lots of forms to fill out when I first sign up to JSA?
At JSA we try to take as much of the paper away as we can. When your first join up, all you have to do is fill in a simple and straightforward application form.
Aside from the registration form what else do you need from me to process my registration?
As an accountancy service provider we are required by law to perform certain checks on prospective clients before we provide our services. For most applicants we just need details from your passport. When you call us, please have your passport to hand - and we'll need the long number from the bottom of the photograph page.
In addition to this we also require your P45 or P46.
How long does it take to process a registration?
Once we have received your completed registration form, your JSA account will be open and ready to use within 24 hours from receipt of the application form and ID. In most cases, you will be registered by the end of the day we receive the details.
How do I draw dividends?
Generally speaking, paying a dividend is the most tax efficient manner in which you will draw money from your limited company. HMRC prefer to see these drawn on a quarterly basis, and the withdrawal should be supported by a dividend declaration form. Values and methods of withdrawal can be discussed in further detail during your telephone consultation
How do I know how much to pay for VAT, PAYE etc?
As your limited company accountant, JSA undertakes the completion of all Accounts and Returns, which includes your quarterly VAT and PAYE returns.
How are my VAT Returns handled?
Each quarter, you would send your information to JSA, together with the VAT return form, which you will have received directly from HMRC. JSA will then complete the return and file following your approval.
What happens when I register for VAT?
Once you register, we will send you an email detailing the set up process and containing the set up forms you will require. The majority of which will simply need your signature and date, and then return to us. We will then call you shortly after sending the email, to ensure you have received it, and that you understand how you are to proceed.
What happens after I am registered for VAT?
Once we have received your set up documents, together with bank account / PAYE and contract information (all of which will be explained when you register), you will be fully registered. We will then arrange a convenient time to call you for a telephone consultation. We take you through the limited company process, answer any questions or queries you have, and ensure that you remain as tax efficient as possible.
How do I raise invoices?
If you opt for our Express Service, then you will be provided with access to our online bookkeeping service. This enables you to raise invoices, enter expenses and update details of any bank transactions.
If you opt for our Liberty Service, then you will be provided with a simple spreadsheet, with which you record basic transaction such as expenses and invoices. This can then be emailed to us on a quarterly or monthly basis. An invoice template will also be provided for your convenience.
How do I get my money?
You can receive money from your company account in 3 ways:
- Monthly Salary
- Monthly Expense Reimbursement
- Dividends
You are a director of your company, but also an employee of your company. As such, you will pay yourself a monthly salary, which can be set up as a standing order from your company account to your personal account each month. There will also be a number of expenses that you will incur whilst performing your duties, which you can claim from your company. In addition to this, you will also be able to claim dividends from your Limited Company, subject to there being sufficient after-tax profits.
How are my PAYE Returns handled?
Each quarter of the tax year, you will receive a payslip from us advising you of your Income Tax, and NI, and Employers NI liabilities. You should then make payment to HMRC accordingly. Again, we can discuss this in further detail during your telephone consultation.
Can I employ someone to work for my limited company?
You can employ someone to work through your limited if you so wish. We will require a P45 or P46, so that the correct tax code can be applied. You will also need to confirm the salary levels you wish to apply. This again this can be discussed in further detail should you wish to proceed.
I already have my own Limited Company; can I move it to JSA?
Certainly! If you have a limited company accountant already, then you just need to supply us with their contact details. We will then write to them and request ‘professional clearance’. The previous provider then supplies JSA with all of your related accounting work to date.