Reply to: HGV driver. inside IR35 preparing own accounts.

[lorryman]

I seem to recall some folks here using a free on line PAYE solution, sorry I can't recall it's name.

Thanks.. I know about the PAYE yes it is called Basic PAYE tools.
https://www.gov.uk/basic-paye-tools

my question about the corporation Tax return filer..

I have found it now. It is on HMRC approved list.
https://www.gov.uk/government/public...ware-suppliers

Its called Quality Management software.
Quality Management Software Ltd - saol

only cost £26. [you must have Excel installed though]

I'll make full list once I get a time to outline how to do your own PSC accounts, payroll etc..
I have studied accounting so I know the business side of it but I have did corporation tax and sepecifically inside IR35 accounts sO I am sure some one will benefit from my experience.

[Fred Bloggs]

@TheCyclingProgrammer
Thanks you are right paye would be director. and I would have to submit nil ct600 too.

@IR35 avoider
You pay less Ni in your company because you run paye as director as oppose to employee that mostly umbrellas do.
Would you mind please sharing your spreadsheet with me.. I can PM my email to you.

Also anyone knows of filing software cheaper the Taxfiler (£120) with no sunscription but pay as you go filing?
I knew one but I forgot the name now when I need it It was one of the software provider on HMRC list I gues it was like £30 or something.

Thanks

I seem to recall some folks here using a free on line PAYE solution, sorry I can't recall it's name.

[lorryman]

@TheCyclingProgrammer
Thanks you are right paye would be director. and I would have to submit nil ct600 too.

@IR35 avoider
You pay less Ni in your company because you run paye as director as oppose to employee that mostly umbrellas do.
Would you mind please sharing your spreadsheet with me.. I can PM my email to you.

Also anyone knows of filing software cheaper the Taxfiler (£120) with no sunscription but pay as you go filing?
I knew one but I forgot the name now when I need it It was one of the software provider on HMRC list I gues it was like £30 or something.

Thanks

[IR35 Avoider]

I thought there was a cut off of around 30k where it wasn't worth running a LTD and an umbrella would be OK?

I've just fiddled with one of my spreadsheets, and I reckon with about 30K income I'd make about £770 on flat rate VAT which would fall short of paying the accountants bill by £160. No umbrella is going to cost less than £160.

When I last used an umbrella, I had to pay higher National Insurance than if I'd had the same salary via a company, because I no longer had an annual pay period. (It may not make much difference if you work full time, but if you work intermittently then NI is deducted for the weeks/months you work via an umbrella at a rate that assumes you will earn the same in every other week/month. )

[TheCyclingProgrammer]

You'll need to submit a corporation tax return and accounts for your company, even if it hasn't made any taxable profit (because its all been paid to you via PAYE).

If all your income is taxed already and you have no other untaxed income then there is no need for you to register for self-assessment. HMRC will send you a notice to file a tax return if they think otherwise. If you're already registered and receive a notice to file a tax return you will need to complete one.

You should put yourself down as a director when doing the payroll if that is what you are.

[MyUserName]

As a director you do an SA anyway.

It's not hard if you have easy to work out income which you will unless you have loads of investment income.

HMRC can then exempt you from doing a SA, but talking to my mates on PAYE you are only exempt if HMRC sees they owe you money year after year.

I got told this year that provided nothing changes (now I have been perm for 2 years) I do not need to do another SA.

[VectraMan]

As the HMRC says.....
Tax doesn't have to be taxing

They don't mean that.

Unless your admin charges are exactly (or more than) 5% there will be something left for the CT. Also you need to account for unpaid invoices at year end, and (in theory at least) that should also include work that you've done that you haven't invoiced for yet. It's possible at year end you'll have no debtors and no creditors, but if you're working around that period you probably will. None of this is difficult, but is part of knowing the true position of the company you have responsibility for and not doing what most do and assume it's the accountant's problem.

Why Ltd. and not sole trader out of interest? If I'd have had to guess I'd have said HGV drivers were probably sole traders, or employees of agencies.

[lorryman]

@northernladuk yes you are right it worth not having company if the income is less then basic rate however as my income is inside IR35 so by it myself I am saving on umbrella company fee and accountants fee aswell so in my case it is only cost of £13 plus fee of £144 for taxfiler.

@pr1 yes I do not want to pay Accountant fee for something I can do myself and a little help from this forum
I would rather donate to this forum than paying an accountant who is doing the same job for me for £650!!!

@SiminMac thanks you are right. I did some research and found these compnies on companies house website and I am sure they are same as me i.e inside IR35 and the abriviated accountants are as I expected £1 share = £1 in bank.
https://beta.companieshouse.gov.uk/c...filing-history
01 May 2016 Total exemption small company accounts made up to 31 October 2015

The 5% I can claim for the admin charges so nothing left for CT600.

Also a good read if anyone interested.
https://www.taxation.co.uk/Articles/...61/living-ir35

As the HMRC says.....
Tax doesn't have to be taxing

[SimonMac]

Hello guys and gals.

I am planning on doing my own accounts and I would appriciate if anyone in situation is doing the same.

I am HGV driver and have own PSC LTD company.

My income is about 500 a week that I recieve in company accounts, and I am inside IR35 so I am happy with 95% availabel to be taken via PAYe and 5% to cover the costs.

I have registered for PAYE and planning to run monthly payroll.

My question is do I need to put myself as director or normal employee on HMRC basic payroll RTI software.
I believe Director,,

Next I need to get my head around the filing requirment.

CT600
Do I need to register for HMRC CT600 filing if all the money will be taken out via PAYE i.e. nothing left and n CT to pay! If I have to than nothing to pay anyway..

Self Assesment
I am sure as a director-employee of the company I do not need to file SA if I am paid via PAYE or may be just submit the p60 details there?

Account for Companies house
Anybody please have a format of the companies house abbriviated accounts related to my situation.

Confirmation statements. [ I am ok with that.]

Paye[I am ok with this too]


Thanks in advance

LorryMan

I don't think you will get anyone in the same boat as you, as its very niche and most of us are It Contractors (pretending) to be outside IR35, however I don't use an accountant and by the sounds of it your situation is simple so shouldn't have too much trouble.

Yes you will have to complete a CT600 its a requirement for all LtdCo's, on the HMRC Basic PAYE Tools again yes you will be a director, as legally the company will need at least one.

[northernladuk]

he's saving on accountancy/umbrella fees by asking here

It appears so but if it's just as/if not more efficient to be brolly with those figures he's wasting his time and opening himself to the risk of making mistakes that he simply doesn't need to?

[VectraMan]

If you have a trading Ltd. company (and to a lesser extend a dormant Ltd. company) there's no getting around having to do annual accounts and CT return even if the numbers are zero. But it's not so hard and the online system these days makes it reasonably (but not completely) fool proof. With 5% left over you'll still have some small profit and CT to pay, which makes a small difference to what you'd get with an umbrella.

[pr1]

I thought there was a cut off of around 30k where it wasn't worth running a LTD and an umbrella would be OK?

he's saving on accountancy/umbrella fees by asking here

[northernladuk]

I thought there was a cut off of around 30k where it wasn't worth running a LTD and an umbrella would be OK?

[lorryman]

Thanks SueEllen

I am ok with SA
and Ok with PAYE and yes there will be tax and ni to pay on about £26k income so no worries there too,

I am just looking for how to tackle the CT600 return and whether it is still required if the contract is inside IR35 and there is no corporation tax to pay as there is no money left to be taxed..

and template for companies house account is there is no debtor/creditors etc and the only capital is just the 1 share.

Thanks

[SueEllen]

As a director you do an SA anyway.

It's not hard if you have easy to work out income which you will unless you have loads of investment income.

HMRC can then exempt you from doing a SA, but talking to my mates on PAYE you are only exempt if HMRC sees they owe you money year after year.