At What The Big Idea, we aim to to help people who could become company director to reclaim the tax that big corporations get. We all pay tax when we eat out, buy fuel and so on but only companies can reclaim this back, this is unfair on individuals who are simply denied this option.
To make this fair we set up Limited Companies for these individuals and register them for VAT, This allows them to claim back the VAT from invoices they send us.
We rely on the honesty of our clients to send us receipts that they have personally been liable for, however it is noted that here is no way for ourselves to check these have not been given to you from family / friends etc.
It is understood by ourselves, and HMRC that you would incur expenses over a period of time before you make any sales, this is expected as you may be doing research, checking out competition and so on
Because of this we would expect you to be filing for a VAT refund in the early years.
The Unemployed
Living on benefits creates many problems, mainly the obvious lack of disposable income. By setting up a Ltd Co with ourselves you would be able to work without it effecting your benefits.
Let me explain - the work would be done by “the company” which is a separate legal entity to yourself. Any money is paid into the company bank account, it is only when you withdraw such money that you would need to declare it to DWP.
However you can use the company bank account for pay for expenses relating to business, such as:-
Dining out (business meetings),
Buying equipment such as a phone / laptop
Paying for petrol (to drive to meetings) and so on.
Provided these bills could be attributed to being in business then the business pays, not you. As such the DWP need not be informed of such expenses.
Please note the DWP may allow some earnings without affecting your benefits, please check with your local office / journal contact.
Workers
For those who work you would probably pay Class 1 NI on earnings above £12,570. As a company director you are paid dividends as opposed to a wage. The tax rules on dividends are more generous than wages.
Currently (if you a re a basic taxpayer) you would pay 8.25% on dividends received over £2,000. Just check out https://www.gov.uk/tax-on-dividends if any queries. The main things to remember is that being VAT registered means you will charge VAT to your customers but you can offset this against any VAT on expenses.
You can claim for the same type of items detailed in the box on the left.
For workers who are directors you would need to either inform your main employer, or ourselves of your dividends so any liability for Class 4 National Insurance contributions can be checked.
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Those here under the CoS Scheme
We are fully familiar with what is known as “The CoS trap”, this is where persons have been invited to come to he UK to work for a sponsor who does not provide the promised work. We understand the 20 hour, and your same work type situation.
This means they live in a state sponsored dilemma of living in modern poverty or supplementing their income for cash-in-hand work.
Becoming a Limited Company means you can work, for whoever you choose and for as long as you like and remain within the law.
Being a Limited Company with VAT registration demonstrates to the Home Office your commitment to this country obviously this greatly helps with any future visa applications.
We are working with immigration lawyers to investigate the potential for such persons to self-sponsor with the Home Office.
Reclaim TAX by joining us today
Reclaim TAX by joining us today
Discover our services
Step 1 = Contact us to set up a Limited Company
1. We specialise in setting up companies and managing the administration side. Depending on your business type and what your ambitions are we will tailor a solution that fits your needs. We create your Limited Company for you, it usually takes around 2 months to get everything through. We do all the paperwork and registrations needed, file accounts with HMRC, Companies House and so on. 
Step 2 = VAT Registered
2. We would always suggest becoming registered at the earliest opportunity. This voluntary registration would allow you to claim back VAT on expenses while you are building your company. To comply with the law you must open a bank account in the name of the company. To compile your VAT return it is essential that you mail us physical receipts, if they come to you as a PDF just forward them to us to print out and place in your file.
Step 3 = Seeking work / clients
3. Once you have your Limited Company you can offer your services to whomever you wish, no job or time restrictions apply. You would do the work and send them an invoice and the money goes into your business account. From there you can use it to cover business expense and at the end of every 3 months pay yourself a dividend. Step 4 = Our Fees
4. There are fees imposed upon us by Companies House and applications themselves take significant admin time. To cover this we charge an initial set up fee of £150. Should there be any queries or questions on registration then we provide admin support at £40 per hour. We compile all submitted receipts and do all the boring admin stuff with HMRC and so on. To cover our time for all the admin cost we charge a flat rate of 25% of the submitted VAT return for our time. Step 5 = Corporation Tax
5. You would be liable for Corporation Tax on your company profits, as such we strongly suggest you put a quarter of all money received into a separate account. This means that you will have surplus funds available at the end of each tax year – no nasty surprises.
Step 6 = CoS Directors and the Home Office
6. At the end of your allowed stay you can show the Home Office that you have been busy building yourself a future in the UK. It is not however enough owning a company, it must be “active”, this means that you have to submit accounts and hopefully make some sales. HMRC are fair and do understand that it can take time to make your first sale.
Our Brand Vision
Remember that once registered for VAT we charge commission only, as such we only get paid if we generate refunds for you.
With us by your side, you can pursue your passion without fear of government compliance concerns. We always endeavour to help our clients with any advice they need from our industry hardened professionals.
Our team is here, to guide you through each stage of launching your business in an inclusive environment that champions innovation and fosters growth. Join us as we create a thriving ecosystem where everyone can succeed on their own terms!
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Have questions or feedback? We’d love to hear from you!
At What The Big Idea, we’re always eager to connect with our community. Whether you need support, have a suggestion, or just want to say hi, our team are always here for you, no matter the circumstance! Reach out via the form to the right, and we will get back to you ASAP. Your thoughts and suggestions WILL always be important to us!