New company accountancy advice

**Clare@InTouch** · 21 October 2011, 08:54

It's easy enough to file a personal tax return via the HMRC website, you'd just include details of your permanent employment (assuming you're filing a tax return for 2011/12 on the grounds that you became a director now, although technically you don't need to do so).

From a company point of view if you set it up now then your first accounts year end would be October 2012. If nothing happens between now and then it's easy enough to file a dormant set of accounts via Companies House. If you start using the company in April then you can appoint an accountant then, and there shouldn't be any catch up fee if you've been dormant to that date. They should then be able to help you start trading with the usual VAT and PAYE registrations.

In short, it should be easy enough to do as long as you do a bit of research.

**kitkatrobins** · 21 October 2011, 12:17

Originally posted by Clare@InTouch View Post

It's easy enough to file a personal tax return via the HMRC website, you'd just include details of your permanent employment (assuming you're filing a tax return for 2011/12 on the grounds that you became a director now, although technically you don't need to do so).

From a company point of view if you set it up now then your first accounts year end would be October 2012. If nothing happens between now and then it's easy enough to file a dormant set of accounts via Companies House. If you start using the company in April then you can appoint an accountant then, and there shouldn't be any catch up fee if you've been dormant to that date. They s Jermery hould then be able to help you start trading with the usual VAT and PAYE registrations.

In short, it should be easy enough to do as long as you do a bit of research.

Thanks for your info, this is the order I hope to do...

Asap - create company
Asap - feb : look for contract
Once contract looking hopeful,
Setup business account (can i do this earlier for free?)
Get accountant (how long is setup, as would need IR35 check on first contract)
Resign full time job
Get liability insurance and ir35 legal help cover

This way I don't need to pay accountant until hopefully feb time... Or least till earning more.

Would you advise create company with company house or accountant?

**anothercodemonkey** · 24 October 2011, 10:19

Originally posted by kitkatrobins View Post

Thanks for your info, this is the order I hope to do...

Asap - create company
Asap - feb : look for contract
Once contract looking hopeful,
Setup business account (can i do this earlier for free?)
Get accountant (how long is setup, as would need IR35 check on first contract)
Resign full time job
Get liability insurance and ir35 legal help cover

This way I don't need to pay accountant until hopefully feb time... Or least till earning more.

Would you advise create company with company house or accountant?

In my experience you don't need the company set up until you actually land the contract. I'd wait until you landed the contract and then sign up with an accountant. Company formation is very quick - maybe two business days. You will be able to register for VAT and have your company bank account open ready for the first invoice after you have been there for a month or so. You can get the insurance done online pretty much instantly as well. It makes no sense to pay an accountant when you have no contract.

How long is your notice period? Can be difficult to land a contract when your availability is quite a way off.

I don't know what your skillset is, but I probably wouldn't resign unless you are sure of having a contract. The market is pretty crap right now.

**malvolio** · 24 October 2011, 10:48

But before you do any of that, read the guide over there---> and download and study the Guide to Freelancing at www.pcg.org.uk. You will be staggered at how much you don't know.

**Clare@InTouch** · 24 October 2011, 11:11

Originally posted by anothercodemonkey View Post

In my experience you don't need the company set up until you actually land the contract. I'd wait until you landed the contract and then sign up with an accountant. Company formation is very quick - maybe two business days. You will be able to register for VAT and have your company bank account open ready for the first invoice after you have been there for a month or so. You can get the insurance done online pretty much instantly as well. It makes no sense to pay an accountant when you have no contract.

How long is your notice period? Can be difficult to land a contract when your availability is quite a way off.

I don't know what your skillset is, but I probably wouldn't resign unless you are sure of having a contract. The market is pretty crap right now.

A company can be set up within 4 hours, sometimes less, so it really can be left to the last minute if you want to. It's the VAT and the bank account that take several weeks to get in place, depending on who you bank with of course.

An IR35 review can be done quite quickly too, depending on who does it. You could get the contract reviewed then get the company set up when you're happy with it.

**philip@wellwoodhoyle** · 24 October 2011, 12:23

As many contractor accountants offer a free limited company and bank account set up, there's no point in doing these yourself before getting the accountant. I'd turn it all around and suggest you get an accountant on board first - most will be happy to talk to you at no charge until you give the go ahead for the formation etc. As others have said, this is now very quick and usually same day. Even VAT is getting quicker these days - the last two we did had a VAT number within 2 weeks. Bank accounts depend on the bank, but we use Cater Allen and again 2 weeks seems to be the norm at the moment. Absolutely no need to buy your company too soon and no need to pay for accountancy before you start.

New company accountancy advice