These are the various steps you need to take moving from a sole trade or partnership into a corporate entity (be it limited or unlimited)
Set up Company: I normally recommend www.theformationscompany.com – take the cheapest option and ignore all upselling.
Set up a bank account. I currently recommend a two bank accounts structure. Firstly mettle.co.uk – owned by NatWest, this is an online bank that gives you free business banking, but is not covered by FCS protection; but it does also give you free cloud accounting software called Free agent; secondly, starling – again free business banking but giving full FSC protection
Set up PAYE scheme: this can be done through this office.
Cancel Class 2 NI Contribution: this is either from the date of transfer to corporate entity OR 6 April following – you need to discuss this with us.
Amend headed paper: Ensure you include Company name and number, the statement “registered in England”, trading address and registered address if different. If you want to put in the details of any directors, then you are obliged to show the names of all directors.
If already running a PAYE scheme you need to issue P45s for all staff dated the day you transfer across. Do not give these to staff. Use the details on part 1a as the beginning point on your new PAYE scheme as if the employees were joining from another business.
Issue new Contracts of Employment to all employees before the start date of their new contracts. Make sure that they show the date employment commenced as the date you start trading as a company but also show a date of commencement of continuing employment being the date they first started working for you in your sole trade or partnership.
Advise your business insurers that you are now trading as a company.
Advise any bodies with whom you are registered that you are now trading as a company.
Set up for filing your Annual Return with Companies House on-line: this can be done through this office.
Ensure that you have set up an appropriate book-keeping system.
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