Limited Company Setup - Application Processing Time

[Fred Bloggs]

I didn't have a clue

The accountant website had a company formation package and I went with it. Lesson learnt.

I'm not sure what are my options if I don't get it by tomorrow or even for weeks as company house told me on the phone today.

The agent was already flexible and decided to wait for the company formation even when the role needed immediate start. If this is going to take weeks, I think I will loose this one.

Well done for quickly recognising what you did. Here is a great place to start learning. It's a bit late but in essence you need to take complete charge of what you're doing and be able to prove it if asked down the road. Being in business is what it's all about and allowing an accountant to do everything for you is a very bad idea. It always was. But even more so now. Good luck.

And yes, despite accountants creating companies for clients for decades, for a one man contracting business, it really is a stupid thing to do in the present political environment.

[jamesbrown]

Accountants have been forming companies for people for donkeys years. Sure, maybe it's one of a hundred factors that might be considered in an MSC challenge, but to the OP, you haven't done anything stupid. You've done what most people do.

As to timing, assuming the incorporation was submitted online, normally they're turned around within 24 hours. Guessing Companies House might have been talking about timescale for dealing with posted letters. I wouldn't panic if it's now been slightly over 24 hours.

On rare occasions applications get rejected. A few times we've seen this where there's a contentious name. Either includes...questionable words (eg possibly rude or violent sounding), or includes protected words ("Royal", "Chartered", things like that).

Check in with your accountant daily until it's sorted.

+1

The MSC legislation is definitely not the main issue here. In that regard, it's more about what comes after the company creation in terms of managing day-to-day activities.

[eek]

+1

The MSC legislation is definitely not the main issue ere. In that regard, it's more about what comes after the company creation in terms of managing day-to-day activities.

I will say the MSC legislation isn't relevant here but let me ask you a question

Why Boox and not Crunch?

[jamesbrown]

I will say the MSC legislation isn't relevant here but let me ask you a question

Why Boox and not Crunch?

I think you could pose the same question about a lot of accountants that have a similar or worse exposure than Boox and CK. I don't think it's that mechanistic. HMRC were looking to exploit the CBS judgement and their interest in CK and/or Boox may have initially been piqued for other reasons, but the marketing material from both is/was horrendous. I think Crunch are in trouble too, along with Brookson and countless others, especially those that offer umbrella services as part of an overall "IR35 solution" (I mean, Brookson's "Flex", seriously - you cannot possibly look at Brookson and think they're in a better position than CK or Boox).

[Fred Bloggs]

I think you could pose the same question about a lot of accountants that have a similar or worse exposure than Boox and CK. I don't think it's that mechanistic. HMRC were looking to exploit the CBS judgement and their interest in CK and/or Boox may have initially been piqued for other reasons, but the marketing material from both is/was horrendous. I think Crunch are in trouble too, along with Brookson and countless others, especially those that offer umbrella services as part of an overall "IR35 solution" (I mean, Brookson's "Flex", seriously - you cannot possibly look at Brookson and think they're in a better position than CK or Boox).

I have been waiting over 20 years for Brookson to be targeted. They were a large part of the reason MSC legislation was enacted. In my opinion, of course.

[zonkkk]

No problem with your accountant creating your LTD. I went with Crunch when I started, and they did everything as part of their package.

If there's a backlog, you wouldn't have sorted it out faster anyway.

If this is inside IR35 just go through an umbrella.

If it's outside, you won't be able to sign the contract until you have your company's registration certificate.

[Lance]

No problem with your accountant creating your LTD. I went with Crunch when I started, and they did everything as part of their package.

If there's a backlog, you wouldn't have sorted it out faster anyway.

If this is inside IR35 just go through an umbrella.

If it's outside, you won't be able to sign the contract until you have your company's registration certificate.

in general there is no problem.
But if your accountant is accused of being an MSC, and they have "controlled" your LTD. for it's entire existence, that's just another nail in the coffin.

IANAL but I setup my own company, and have changed accountant, so there is far less risk of me being involved in an MSC as it is clearly evidenced that I run the company not an accountant.
Who knows how this will all pan out, but mitigation of risks, when so trivial to do, seems wise.