No contract and LTD Co - options?

**Old Greg** · 24 July 2007, 08:51

Originally posted by diesel

I have been contracting and set up with a LTD company via Brooksons.

However, my current client contract is finishing in the next few days. I guess it may take a few months to find a new contract.

Brooksons tell me they will still charge me the accountancy fee of £27pw even if I am not working and my company is not being paid.

Just curious what my options would be in relation to my LTD co and to being able to sign on. Any suggestions welcome.
thank you

Have a look at this thread for comments on brooksons (I have no personal experience of them).
http://forums.contractoruk.com/thread19548.html

**diesel** · 24 July 2007, 08:54

Thanks - i have seen that thread. My question is less about brooksons but more about what shall i do with my LTD Co now that my contract is finishing?

Do i need to close it down in order to be able to sign on for basic job seeker benefits and tax credits?

**Old Greg** · 24 July 2007, 09:10

Sorry - misread your post. Don't know the answer, hopefully someone should be along soon.

**VectraMan** · 24 July 2007, 09:31

There's no reason for your Ltd. to stop paying your salary, so you're still employed, and so can't claim benefits. You have left enough money in the company to cover costs haven't you?

No point closing down the company if you're planning on contracting again ASAP.

**diesel** · 24 July 2007, 09:51

Originally posted by VectraMan

There's no reason for your Ltd. to stop paying your salary, so you're still employed, and so can't claim benefits. You have left enough money in the company to cover costs haven't you?

No point closing down the company if you're planning on contracting again ASAP.

thanks for reply. there is some money left in LTD co bank account. Usually i pay my self a large amount every 2-3 weeks. As i get my invoices from brookson they calculate how much i should be paying as direectors fee and dividends.

Only thing is Brookson tell me they still need to keep charging me a accountancy fee of £27pw even if no invoices or payments are being processed - they said its HMRC /company house rule - anyone heard of such thing?
hence, if its for 2 months i am not working dont fancy paying them the £27pw but wish to know if its worth the hassle (if there is any) in closing down my Ltd co??

**KathyWoolfe** · 24 July 2007, 10:00

Originally posted by diesel

thanks for reply. there is some money left in LTD co bank account. Usually i pay my self a large amount every 2-3 weeks. As i get my invoices from brookson they calculate how much i should be paying as direectors fee and dividends.

Only thing is Brookson tell me they still need to keep charging me a accountancy fee of £27pw even if no invoices or payments are being processed - they said its HMRC /company house rule - anyone heard of such thing?
hence, if its for 2 months i am not working dont fancy paying them the £27pw but wish to know if its worth the hassle (if there is any) in closing down my Ltd co??

I have a Limited Company and my previous (first) contract ended in November 2005. Once my accountant stopped paying in funds from the agency they stopped charging and they didn't start charging again until I started my current contract after a gap of 17 months.

**oraclesmith** · 24 July 2007, 10:00

What they're talking about is probably the fact that they will have to do your company returns and full year accounts, so the weekly fee is easy instalments towards the final fee.

Most regular accountants do this, but some simply bill the whole fee when the relevant job need doing. For example, it's going to cost about £700-£900 of accountancy time to prepare and file annual accounts.

It sounds like Brooksons need to be a bit more precise about their billing arrangements though. And of course, as a company Director, you will need to get a lot more up to speed on how to run a company for real. Even though it's all handled by your accountant, you still have ultimate responsibility for everything that happens to it.

**diesel** · 24 July 2007, 10:03

Originally posted by KathyWoolfe

I have a Limited Company and my previous (first) contract ended in November 2005. Once my accountant stopped paying in funds from the agency they stopped charging and they didn't start charging again until I started my current contract after a gap of 17 months.

hi
what did you do in your gap of 17 months?? i mean in terms di you sign on or claim any benefits? As i would like to consider claiming working tax credits but not sure if i need to close my LTD co first or what?

**diesel** · 24 July 2007, 15:52

is there any advice on what options i have and what should i do with my LTD co? my contract finishes in a few days.....argh!

No contract and LTD Co - options?