registering own company

[asal]

Hi,

I'm doing contracting and currently with umbrella company.I'd like to start own company and few queries are.

1.When I don't have any contract job then what would be the impact after regsitering own company.

2.Do I need to pay any kind of tax regualrly eventhough if no earnings.

3.Can I work with some other company when I have my own company registered.

please advise.

thanks.

[AccountantMatthew]

1. If you have formed a company but don't have a contract all it means is that your company is not making the money you would want it to - it basically carries on as normal and you as director will still have responsibilities attached to you.

You will still have to ensure that accounts are prepared (even if the company is dormant) and that Companies House and any tax returns are made.

2. You will still have to pay any taxes if they are due. However since Corporation Tax is based on profits, if you make no profits then you won't pay Corporation Tax. Any PAYE/National Insurance would be paid if it is due, ditto VAT on any sales you do make (although it is reclaimable on purchases).

3. You can - providing of course that your own company's contract of employment lets you! In general, there is nothing legal to stop you taking more than one job if you can work here.

Hope this helps.