accountanty etc

[gibbsville]

i have recently set up my ltd company( nov 06) and have /invoiced/been paid etc no probs for the work i have done so far
but looking at these forums i have come to the conclusion of using an accountant
i only have the ltd company set up ,should i register for vat and if i do and say i buy a new car ,can i reclaim the vat on it?
also i need to set up a buisness account,i have kept records/receipts so far but have quickly come to the conclusion that this is time consuming and i dont want to make any mistakes
i am thinking of using an "all in one service" which sorts out the accounts etc for a flat fee
is this the right way to go?

[Sockpuppet]

You dont have a business account

Please dont tell me you put the money in your own personal account?

If you register for Vat I dont believe that you can reclaim the VAT on cars. In any case DO NOT buy a car through your business. If it is a van then yes however there are better ways to get the car (pence per mileage) comes to mind.

1. Yes you need an accountant.
2. Records are not time consuming. I just re entered a whole 4 months of data into my accounts package and it took me 20 minutes.
3. See 1
4. Register for Flat Rate Vat... search for why its better
5. Talk to SJD or Darren @ 1st Accountancy Serve (both members on the forum)

[chuddy]

Sockpuppet,

Do you have a link to the HMRC page that describes what we not claim VAT back on? (e.g. cars)

EDIT: Found it: here

Also, gibbsville, I think the only point that it may be worth registering for VAT is when you do lots of exports outside the EU - i.e. you do not charge your clients VAT at this point so cannot pass the VAT charges onwards.

Cheers

[Sockpuppet]

Also, gibbsville, I think the only point that it may be worth registering for VAT is when you do lots of exports outside the EU - i.e. you do not charge your clients VAT at this point so cannot pass the VAT charges onwards.

If you are making VAT exempt supplies you cannot reclaim the VAT on the inputs. Not sure if the outside the EU counts as a vat exempt supply.

Also if you are selling to business then register for VAT as they can claim it back so its doesnt bother them, but means you can claim VAT back on a lot of stuff. Also see if the flat rate VAT is better (do a search its been talked about many times).

[Nixon Williams]

i have recently set up my ltd company( nov 06) and have /invoiced/been paid etc no probs for the work i have done so far
but looking at these forums i have come to the conclusion of using an accountant
i only have the ltd company set up ,should i register for vat and if i do and say i buy a new car ,can i reclaim the vat on it?
also i need to set up a buisness account,i have kept records/receipts so far but have quickly come to the conclusion that this is time consuming and i dont want to make any mistakes
i am thinking of using an "all in one service" which sorts out the accounts etc for a flat fee
is this the right way to go?

You cannot reclaim vat on a car even if you do register for vat.

Open a company bank account asap - your accountant can sort this.

Get an accountant asap so that you do not make any costly mistakes.

Alan

[tim123]

Open a company bank account asapAlan

I don't understand how he can have received payment if he doesn't have a company account.

No (sensible) agency is going to pay a cheque due to XYZ Ltd to My X Smith.

I suppose that he could have cashed it at "cash converters" but they charge a mega percentage

tim

[Nixon Williams]

I don't understand how he can have received payment if he doesn't have a company account.

No (sensible) agency is going to pay a cheque due to XYZ Ltd to My X Smith.

I suppose that he could have cashed it at "cash converters" but they charge a mega percentage

tim

It shouldn't happen but I know it does, if the contractor just gives a sort code and account number you'd be surprised at how many agencies/clients pay this to a personal account.

Alan

[gibbsville]

i know i should of set an buisness account up from the word go thankfully i have not spent the 2 invoices paid and when i set my account up in the next couple of weeks i will transfer it straight into my buisness account
so the best advise on the car front is to purchase a new car for personal use and claim back the milage from the company?

many thanks i have only been ltd for just over 8 weeks and learning a lot already

[Sockpuppet]

i know i should of set an buisness account up from the word go thankfully i have not spent the 2 invoices paid and when i set my account up in the next couple of weeks i will transfer it straight into my buisness account
so the best advise on the car front is to purchase a new car for personal use and claim back the milage from the company?

many thanks i have only been ltd for just over 8 weeks and learning a lot already

Remember to pay the interest that you earnt on that as well otherwise they can consider if a BIK.

This "next couple of weeks" why make it worse. Get down the ban and get one done this week.

Company money != your money.