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New Limited Company - first year end

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    #21
    Originally posted by FK1 View Post
    Specially registered because of this thread. Too many zombies for me

    Correcting payroll errors
    https://www.gov.uk/payroll-errors/co...yments-to-hmrc

    Your limited company's first accounts and Company Tax Return
    https://www.gov.uk/first-company-accounts-and-return

    Running a limited company
    https://www.gov.uk/running-a-limited-company

    Corporation Tax: commercial software suppliers
    https://www.gov.uk/government/public...ware-suppliers

    Accounts and tax returns for private limited companies
    https://www.gov.uk/prepare-file-annu...nnual-accounts

    I am with you, Captain However the advise to get an accountant for the first year does makes sense.

    Just maybe you need a proper bookkeeping and accounts production software to help you on the first place and then if needed a professional accountant who uses the same software.

    You might find "check and file" service for £99 for FreeAgent software. It might be a compromise between full accounting servicing and full independence.

    But again, the vast majority of LTD contractors do need full professional accounting services and it fits them well. Psychologically at least
    +2; this is the future

    Everything can be filed via HMRC and Companies House without an accountant and Free Agent will make this easier for accounts and corporation tax within the next few years

    Comment


      #22
      Originally posted by JB3000 View Post
      +2; this is the future

      Everything can be filed via HMRC and Companies House without an accountant and Free Agent will make this easier for accounts and corporation tax within the next few years
      It can be, but whether what you are filing is right is another question. Even with Free agent, just because the numbers add up doesn't mean the are actually correct, nor does it mean you are doing this the most efficient way with regards to tax or paying the right amount.
      "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

      Comment


        #23
        Originally posted by FK1 View Post
        Specially registered because of this thread. Too many zombies for me

        Correcting payroll errors
        https://www.gov.uk/payroll-errors/co...yments-to-hmrc

        Your limited company's first accounts and Company Tax Return
        https://www.gov.uk/first-company-accounts-and-return

        Running a limited company
        https://www.gov.uk/running-a-limited-company

        Corporation Tax: commercial software suppliers
        https://www.gov.uk/government/public...ware-suppliers

        Accounts and tax returns for private limited companies
        https://www.gov.uk/prepare-file-annu...nnual-accounts

        I am with you, Captain However the advise to get an accountant for the first year does makes sense.

        Just maybe you need a proper bookkeeping and accounts production software to help you on the first place and then if needed a professional accountant who uses the same software.

        You might find "check and file" service for £99 for FreeAgent software. It might be a compromise between full accounting servicing and full independence.

        But again, the vast majority of LTD contractors do need full professional accounting services and it fits them well. Psychologically at least
        Thanks FK1, some good advice there.

        Comment


          #24
          Specially registered because of this thread. Too many zombies for me
          Welcome !

          If you are suggesting people are zombies for saying the same thing, maybe its just good solid advice?
          He has already admitted an error and at this time it is the only one he actually knows about.

          If you are on a decent day rate, then the expenses for an accountant are really very small.

          TBH, my time is better speant enjoying what I earn, rather than saving a few shekels, on accountancy, then spending the time doing it myself.
          YMMV.
          The Chunt of Chunts.

          Comment


            #25
            Originally posted by MrMarkyMark View Post
            Welcome !

            If you are suggesting people are zombies for saying the same thing, maybe its just good solid advice?
            He has already admitted an error and at this time it is the only one he actually knows about.

            If you are on a decent day rate, then the expenses for an accountant are really very small.

            TBH, my time is better speant enjoying what I earn, rather than saving a few shekels, on accountancy, then spending the time doing it myself.
            YMMV.


            I think Captain has the right to do his own errors and he will manage them step by step. It is a quite feasible for a well educated person like code VBA script for an accountant. Maybe resources consuming and even risky (fines, time, frustration) but this is valuable experience.

            It is not about the value for money, it is about the value for business when a director has a real choice - spend his own time or pay for professional services. And it is up to him to decide.

            The value for money is also very different for everyone. Someone would feel £2000 is OK enough as an annual fee and another one would think £600 is unreasonable expensive.
            Last edited by FK1; 10 August 2015, 20:49. Reason: grammar

            Comment


              #26
              Originally posted by MrMarkyMark View Post
              TBH, my time is better speant enjoying what I earn, rather than saving a few shekels, on accountancy, then spending the time doing it myself.
              YMMV.
              Paradoxically time to spend the same (except the first time), it is more about the comfort zone.

              And someone may enjoy his/her independence. It might be even rational if you have a few LTDs or real start-up like amazon shop with just hundreds of pounds in profit rather than £400+ pd IT contractor pretending to be a business.

              Comment


                #27
                As people have said, ultimately it's your call as the owner of YourCo Ltd if you want to do this stuff solo or to pay for a professional service from an accountant.

                Personally I feel that the roughly £1200 I shell out a year as a deductible company expense is worth the lack of hassle, good advice and assurance that the submitted numbers are correct.

                Comment


                  #28
                  Originally posted by Alan @ BroomeAffinity View Post
                  You're aware that under RTI yiu need to dealing with PAYE returns on a monthly basis?
                  No it doesn't have to be monthly.

                  For a one-man-band handling their own PAYE it makes sense to pay the £10k as a lump sum annually and deal with RTI in a single hit.

                  Comment


                    #29
                    Originally posted by captain View Post
                    1. Companies House annual return - completed
                    2. Complete all PAYE requirements for tax year 14/15 as an employer (I'm actually due money from HRMC so I think I can claim this and record it as income for 14/15 year?)
                    3. Record all income and expenses from first day of company to the end of first accounting period - maintained on a simple excel
                    4. Complete company tax return on HMRC's website
                    5. File Companies House annual accounts (same as number 3? or will I need to purchase 'tagging' software for this to be completed?)
                    6. Work out the post tax dividend and pay this to shareholders (not quite sure what is involved here yet)
                    7. Complete HMRC's self assessment as an employee and director recording salary and dividend received.
                    I do 1, 2, 3, 6 & 7, myself, and have done since my first year. The accountant does 4 & 5.

                    You've missed the fact that for 5 the accounts must first be compiled (typically by an accountant). No, it's not the same as 3!, and that you even asked would perhaps suggest that going it alone is not a good idea just yet.

                    My accountant works from the raw data (a spreadsheet like in your case) at year end and compiles the annual accounts. I produce accounts myself as well, independently, as an exercise to prove I understand the beast I'm legally responsible for. Each year there is a discrepancy, and almost without exception it's my error, but it does mean I never sign off the accounts without understanding them to the last penny.

                    I was probably at a similar point as you towards the end of (a very hectic) first year. I had no intention of attempting the formal accounts myself so I found an accountant that was happy to do the EOY stuff and help point me in the right direction for PAYE/VAT, etc. and answer the odd question through the year.

                    A few things you may not have considered and which I didn't spot elsewhere in the thread:

                    - VAT, flat rate scheme: Ironically perhaps, the 'profit' from this on a typical contractor turnover would pay for a year's worth of accounting fees, and you may have missed out on that.

                    - P11D: A bureaucratic nonsense that seems to confuse most people when first faced with it.

                    - HMRC Basic PAYE Tools software: might be easier than using the web portal. Also paying salary annually (and notifying HRMC of this) would save some admin.

                    - Free Agent: some people use this instead of a spreadsheet. It has the advantage that your accountant can use the numbers directly, plus it gives a rolling calculation of the dividend that can be taken. Personally I use a spreadsheet to do the same.

                    Finally it's possible to DIY much of the work but do not consider this simply to reduce fees. Ignore that at your peril.

                    Comment


                      #30
                      I think Captain has the right to do his own errors and he will manage them step by step.
                      Very true, his business / pretend business, it is up to him to manage his risk, correct.

                      Maybe resources consuming and even risky (fines, time, frustration) but this is valuable experience.
                      Great.

                      You do realise that an IR35 investigation could be kicked off for due to attaining this "valuable experience"?
                      Might be a late VAT payment, an accounting discrepancy, to take a couple of examples.
                      The Chunt of Chunts.

                      Comment

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