Setting up a limited company? -

Just wondering the rules are for this.1) It seems to be free to register a company2) Can i use the company if i get work/contract and hence leave it dormant when no work3) Are there any constant charges involved having a limited company, like yearly charges or whatever4) What paper work do i need for tax things, do you only declare a tax return once a yearSeems all a bit easy from the brief things i have readMy line of work i may get 20 weeks worth of work per year but thought it better to start my own company name etc...I could also go self-employed or use an umbrella company or go freelancer... i think.Any tips?

Here are some answers:1) It seems to be free to register a company - Registering a limited company is not free. You have to pay a fee to Companies House. Visit their website for all the information you need on setting one up. You do need to register with Inland Revenue within 3 months of starting trading.2) Can i use the company if i get work/contract and hence leave it dormant when no work - You normally only make a company dormant when you re not trading for a whole year. Otherwise, if you have irregular work, you just keep the company and submit your annual returns - see next answer3) Are there any constant charges involved having a limited company, like yearly charges or whatever - Each year you have to submit an annual return, which shows the names of the directors and company secretary and shareholdings. This costs ��15 when you do it on-line. You also need to submit a set of accounts each year, even for dormant companies. There s no charge for this.4) What paper work do i need for tax things, do you only declare a tax return once a year - When you do your annual accounts for Companies House you usually do your Corporation Tax return. Visit the Inland Revenue for more information on this.It depends on how much work you re going to be doing and who your potential customers are whether it s worth setting up a limited company or being a self-employed freelance. Contact your local Business Link for free help and advice that will take you through all of this.If you re working business to business it can sometimes be better to be a limited company as businesses like working with others like them.Good luck!