I hope someone on here can help.I am going to see a client on Friday who is an Enterprise Ltd.He started his company 10 months ago, not because he wanted to but was left with no option by his employer.
From what I can remember, he earns 10k and takes out 70% of that.
My question is: Is there anything that I need to know or be aware of when working with an Enterprise/Ltd as I have only done Sole Traders.
What is an Enterprise Ltd? How does that differ from any other Ltd? Do you have a link to supply additional information?
Are we actually talking about an IR35 case here? Certainly sounds that way as you are refering to your clients client as his employer.
For IR35 expenses that would have been allowable as an employee such as travel are allowable against the business.
Other expenses such as your fee's must come out of 5% of turnover. So your client basically has £500 to pay for
- Use of home as office
- Accountancy and bookkeeping fee's
- Costs incurred in winning contracts
- Printing, postage and stationery
- Employers and Public Liability Insurance
- Training costs
- Computer equipment
- Bank and overdraft interest
- Hire purchase payments
etc.
The remaining 95% of revenue where not used for travel and pension is deemed salary.
Considering that the clients business will have as much filing work as any other limited company (companies house filing , CT600 (short) filing, preparation and filing of accounts (short version filed, full version for client)) then really for a limited company caught under IR35 with a £10k turnover considering any other commitments that the client may have then it might not be worth your time considering them as a client.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I mentioned that it sounds like IR35 to me, and he said his accountant only mentioned that to him the other day.
An Enterprise I believe, is not a Charity but one who works with the community, I will find out more when I see him. (Could be classed as a Social Enterprise)
If he is an employee and not employed, what would I need to do?
He is someone I know form my church so really want to help him
