Question regarding self employment..

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I have just registered my own limited company with a partner, we are both directors of the company.

We are both contractors for NHS. Now for us to get paid, do we register ourselves as employees for our ltd company and then do our payroll. Or are we already employees and just need to run payroll?

Currently new to this, and all a bit confusing at the moment to be honest lol.

 

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The company would invoice the NHS, who would then pay the company.

The company would then pay you a wage/dividend.

 

Get some serious advice from your Accountant.

Yes, you will need to be on payroll and you have to set that up with the Inland Revenue. This means you will (or rather the Ltd Co will) pay you a wage each month AND pay tax and NI contributions to the IR each month (don't forget !).

However, (as long as you're making good profits) you should have it set so that you are paid a minimum wage to qualify for NI benefits and the rest is paid to you as dividends on the shares you own in the business. Your accountant should really help you set this at the appopriate levels. You should also document any loans to the company (i.e. any money you have put into it to get it started).

There is a whole host of other stuff so do get some serious professional advice (it's worth paying out for it !)

 

^^

 

Yep you need advice from an accountant who will be able to advise you on IR35- something you may come under.

A good resource for you is the Contractor forums.