ForCustomerto answer. To continue, here are my other questions:
1. My new business will involve trading in the US selling goods there online. Would it be better to start as a Ltd Co rather than Partnership?
2. If I set up a new Partnership with my partner for the new business and I am still a Director of the Ltd co, do I need to register with HMRC as self employed?
3. Would the official trading date start from the date I register with HMRC as self employed or can it be earlier?
4. Can I still claim expenses used prior to setting up the new Partnership and being registered as Self-Employed?
5. When I change the Partnership to Ltd Co, do I become PAYE so de-register as self-employed?
As I will be getting supplies from China and actually trading in the US rather than UK, and also from your advice, it sounds like it is better to start as a LTD Co?
1. Can I claim expenses paid prior to setting up the new Ltd as I could if I had set up as a Partnership?
2. My partner and myself have both just left our day jobs so if we set up as Directors of a new Ltd Co, would that effectively work as PAYE rather than self employed? ie do we need to register anything with the HMRC? We both already submit annual self assessment returns (mine for income from current Ltd Co as that is not done by PAYE) and my partner for rental property income tax. Do we need to do anything else if we both have UTR numbers?
I think we are confused as to how we would be classified. Under LTD would we be employed as PAYE under the company rather than classified as Self Employed for tax purposes?
3. For start up costs, do we put money into the new Ltd Co by way of a Director's loan eg if we were put in £15,000 - £20,000 which can then be paid back at a later date?