New Limited Company - first year end

[captain]

Hi there - this is my first post on this forum as I wanted some general advice on the tasks required after the first year end of a new limited company both as a company and individual. Administrators: if there has already been another thread or you feel this post is more appropriate on another section please feel free to move.

I set up a limited company in Apr 2014 with me being the only employee and director. I've been paying regular salaries from my company to myself through HMRC's basic tool with the view of taking a dividend once corporation tax has been paid. I'm trying to put together a task/checklist of all the things that I need to do. Ideally I would prefer to do this myself as opposed to going through an accountant. So far I have gathered I need to do the following:

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'm not VAT registered)

I managed to come up with the above by going through all my previous correspondance and having a check online.

I just wanted to make sure I'm not missing anything and the above is complete. Or if anybody could direct me to a link or somewhere which would explain each of the steps required that would be great.

Sorry for the long post.

Many thanks in advance
Captain

[jbond007]

Hi there - this is my first post on this forum as I wanted some general advice on the tasks required after the first year end of a new limited company both as a company and individual. Administrators: if there has already been another thread or you feel this post is more appropriate on another section please feel free to move.

I set up a limited company in Apr 2014 with me being the only employee and director. I've been paying regular salaries from my company to myself through HMRC's basic tool with the view of taking a dividend once corporation tax has been paid. I'm trying to put together a task/checklist of all the things that I need to do. Ideally I would prefer to do this myself as opposed to going through an accountant. So far I have gathered I need to do the following:

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'm not VAT registered)

I managed to come up with the above by going through all my previous correspondance and having a check online.

I just wanted to make sure I'm not missing anything and the above is complete. Or if anybody could direct me to a link or somewhere which would explain each of the steps required that would be great.

Sorry for the long post.

Many thanks in advance
Captain

From my own personal experience, I got an accountant to do it just because I wasn't sure myself and didn't have the bandwidth and also didn't want to do it

One possible option (if you really keen to do it yourself) - get an accountant to do it for a year or two and then you take over once you've gotten the hang of what all needs to be done

[northernladuk]

From my own personal experience, I got an accountant to do it just because I wasn't sure myself and didn't have the bandwidth and also didn't want to do it

One possible option (if you really keen to do it yourself) - get an accountant to do it for a year or two and then you take over once you've gotten the hang of what all needs to be done

Totally. An accountant is definitely the way forward. Even if you get the hang of it can you keep up with changes in legislation and still do it right? I doubt it.

The bit about paying a dividend when CT is paid sounds very wrong so I am wondering what else is not going right that an accountant would have corrected. You are losing the interest on that money not pulling it out as soon as possible so you are losing money already.

[DaveB]

If this is your first time running year end for a Ltd company I would stroingly suggest you engage an accountant to do it for you. This will make sure you get the sums right and dont end up paying to much or too little tax both as a company and as an individual.

They will also make sure you get the dividend paper work right and avoid the risk of it being teated as income under PAYE.

You are almost cetainly losing money by not being VAT registered and using the Flat Rate Scheme for VAT.

Although it all sounds straighforward here are a numbe rof gotchas in the online forms that you need to understand to get the sums to work, especially aound assets and valuaion of shares.

Yes an accountant will charge you fo this, but at the very least you will then have a template for how to make the submnissions next year.

[xoggoth]

gotchas in the online forms

Indeed. CT submission especially is a nightmare, enter same things over and over again in different places and get errors that stop you proceeding if just one pound discrepancy in totals on different pages. Be prepared for quite a lot of hassle if you want to DIY.

[MrMarkyMark]

with the view of taking a dividend once corporation tax has been paid.

Oh dear, are you really sure

[captain]

Thanks for the feedback so far guys. I guess I am reluctant to employ an accountant because I have some understanding of finance but I must say this isn't like anything I've done before.

I'll have to double check the dividend payment as I thought you only distributed after all expenses have been paid including CT but I could be wrong.

Anyways, do you think there's anything 'significant' I've not got on the list? And does anyone know of sites/links that might provide some guidance on this?

Cheers

[northernladuk]

You are not listening.... You have defined your own need in the first paragraph let alone what others have already pointed out.

Paragraph 2 proves you don't have a full grasp and paragraph three backs that up.

What other proof do you need. The danger here is you don't know what you don't know, not fudging the bits you do know.

[DaveB]

Thanks for the feedback so far guys. I guess I am reluctant to employ an accountant because I have some understanding of finance but I must say this isn't like anything I've done before.

I'll have to double check the dividend payment as I thought you only distributed after all expenses have been paid including CT but I could be wrong.

Anyways, do you think there's anything 'significant' I've not got on the list? And does anyone know of sites/links that might provide some guidance on this?

Cheers

This is even more reason to get an accountant on board. You have some understanding of Finance, but not of Accounting and Taxation. They are not the same thing.

Dividends can be paid after expenses and tax have been *accounted for*, they dont have to have been *paid*. Once you have your profit after tax calculated you can pay dividends out of that. There is no need to wait until year end. Most contractors, especially in the early days of their Ltd. will pay dividends Monthly untill they build up a big enough reserves to pay annually or semi-annually. An accountant should calculate this for you on a monthly basis or give you the tools to do it and then check your figures.

I've already mentioned that by not being VAT registered you are probably losing money by not being on the Flat Rate Scheme. This is enssentially a discount on your VAT bill from HMRC in return for not being able to claim back VAT on expenses. Unless you have very large VAT'able expenses you will almost certanily be better off by doing this. An accountant can confirm this for you. They may also be able to advise if you can back date your registration to take advantage of this.

Seriously, get an accountant. I'll bet you a pint that if you dont you'll be pulling our hair out trying to get your CT return to add up otherwise.

[captain]

This is even more reason to get an accountant on board. You have some understanding of Finance, but not of Accounting and Taxation. They are not the same thing.

Dividends can be paid after expenses and tax have been *accounted for*, they dont have to have been *paid*. Once you have your profit after tax calculated you can pay dividends out of that. There is no need to wait until year end. Most contractors, especially in the early days of their Ltd. will pay dividends Monthly untill they build up a big enough reserves to pay annually or semi-annually. An accountant should calculate this for you on a monthly basis or give you the tools to do it and then check your figures.

I've already mentioned that by not being VAT registered you are probably losing money by not being on the Flat Rate Scheme. This is enssentially a discount on your VAT bill from HMRC in return for not being able to claim back VAT on expenses. Unless you have very large VAT'able expenses you will almost certanily be better off by doing this. An accountant can confirm this for you. They may also be able to advise if you can back date your registration to take advantage of this.

Seriously, get an accountant. I'll bet you a pint that if you dont you'll be pulling our hair out trying to get your CT return to add up otherwise.

Thanks DaveB. Good sound advice. As well as the point about getting an accountant I'm also getting good and substantial information in regards to accounting for the dividend and VAT. Much appreciated