• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Is an accountant mandatory for a limited company

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Is an accountant mandatory for a limited company

    Hi, I am a first timer just about to start contracting through limited company. Is it mandatory to have an accountant as per law. Can I not do it by myself?.

    #2
    No and yes you can. Accountants are people who charge for advice you can get free from numerous sources including the IR. However, doing your own is quite time consuming and very very very very very very very very very very boring.

    Comment


      #3
      There is nothing to stop you doing your own accounts and an accountant is only required for companies with a turnover of I think £5.6m or more where audited accounts are required.

      I wouldn't advise it however. Have had a number of people on the forum who have started doing their own accounts and ended up in a mess or missing out on tax saving opportunities. If it were feasible I would do it - after all I service my own car and do my own DIY. At least 80% of Contractor accounts is not complicated but the other 20% requires well informed and up to date professional knowledge.

      Comment


        #4
        Crap.

        Comment


          #5
          Excellent turn of phrase as usual, Xoggoth

          Comment


            #6
            Hope so. I spent hours and hours thinking about it.

            How come everyone is in the accounting/legal section tonight? Must be cos this is almost the only genuinly atW free zone.

            Comment


              #7
              Care to expand on that Xogg

              Comment


                #8
                Ok. Crappppppppppppppp.

                What is this 20% new stuff? What really major big thing has fundamentally changed in accounting for the average UK based contractor since IR35 apart from the settlement thing?

                Anything that significantly affects contractors, like settlement thing or form 42 will be reported on shout99, CUK, PCG etc. and mostly it's in the stuff the IR and HMCE send you. You just need to read it. There aren't any mystical secrets available only to the high priests of accountancy.

                Comment


                  #9
                  RE:

                  Hi, thanks for taking time to comment. I am now encouraged and planning to do it myself. Started learning the techniques required to utilise "expense clauses" to suit my circumstances.

                  Before requesting your valuable comments, i have had a chat with few accounting firms and individual accountants. Also had a look at few softwares. they are not only highly priced, they charge big money for providing updates of legislative changes ( for ex. payroll). I think it is time to provide IE based fully functional accounting for GBP 4.99.

                  Comment


                    #10
                    Re: RE:

                    Having done my own for a few years I suspect that having very expensive software does not help much. I find most time is spent trying to track down discrepancies in the balance sheet because of basic input errors like putting a payment to business reserve in as payment to director.

                    I expect I made just as many basic errors in the sheets I gave to accountants when I had one, but they never queried or chaged anything, which rather confirms my suspicions that the pros never bother with trying to get a balance at all, they just spend 5 minutes adjusting the figures so they look right.

                    Comment

                    Working...
                    X