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Previously on "Limited Company Setup - Application Processing Time"

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  • Lance
    replied
    Originally posted by zonkkk View Post
    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.

    Leave a comment:


  • zonkkk
    replied
    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.

    Leave a comment:


  • Fred Bloggs
    replied
    Originally posted by jamesbrown View Post

    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.

    Leave a comment:


  • jamesbrown
    replied
    Originally posted by eek View Post

    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).

    Leave a comment:


  • eek
    replied
    Originally posted by jamesbrown View Post

    +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?

    Leave a comment:


  • jamesbrown
    replied
    Originally posted by Maslins View Post
    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.

    Leave a comment:


  • Fred Bloggs
    replied
    Originally posted by Pete30 View Post

    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.

    Leave a comment:


  • Maslins
    replied
    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.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Lance View Post

    step 1) form a company yourself - Set up a private limited company: Limited companies - GOV.UK (www.gov.uk)
    step 2) sack the accountant
    step 3) get another accountant (read the forums here, or find a local firm)
    step 4) get a company bank account (Mettle is a great start as it's quick to setup and they give you FreeAgent)
    step 5) get PI, PL and EL insurance (QDOS/Hiscox)
    step 6) get contract signed
    step 7) start work, and billing

    and when the originally ordered company lands, just close it down. Strike off your limited company from the Companies Register: Overview - GOV.UK (www.gov.uk)
    You will likely have to get the new accountant to do some of that paperwork at extra cost, but as the company will have never traded it shouldn't be overcomplex. Or you could even make it dormant and never trade.
    step 8) Learn learn and learn. Do it fast. You are a contractor now. Your main job is to run your company, understand it's finances and understand IR35. The work at the client is easy, everyone can do that. I didn't have a clue isn't a defense when you fail your legal obligations as a company director.

    You didn't have a clue how to handle an interview clash and now don't have a clue about setting up a company. What exactly do you have a clue about?

    If you didn't have a clue you should have gone umbrella until you did.
    Last edited by northernladuk; 1 March 2023, 12:09.

    Leave a comment:


  • Craig@Clarity
    replied
    Originally posted by Pete30 View Post
    Hi

    I'm setting up a limited company through an accountant. The accountant had submitted the application to company house yesterday (12pm) and I thought I would get the formation confirmation by today. However there is no news yet.

    I've called company house who advised that they have a backlog of 3 weeks and I don't get an answer for three weeks.

    Just passed the info back to the accountant who has declined the response from company house and assured that it would be done tomorrow.

    I'm supposed to start the work next week and I thought the normal turnaround time is 24 hrs.

    Anyone had similar experience or is there anyway to expedite the application request.

    Thanks.


    Standard advice would be it is usually 24 hour turnaround once the application is submitted to Companies House. More recently, it can be as little as 5 minutes.

    Leave a comment:


  • Lance
    replied
    Originally posted by Pete30 View Post

    The company formation application is already submitted. I'm not sure what will happen if I now move to another accountant.
    step 1) form a company yourself - Set up a private limited company: Limited companies - GOV.UK (www.gov.uk)
    step 2) sack the accountant
    step 3) get another accountant (read the forums here, or find a local firm)
    step 4) get a company bank account (Mettle is a great start as it's quick to setup and they give you FreeAgent)
    step 5) get PI, PL and EL insurance (QDOS/Hiscox)
    step 6) get contract signed
    step 7) start work, and billing

    and when the originally ordered company lands, just close it down. Strike off your limited company from the Companies Register: Overview - GOV.UK (www.gov.uk)
    You will likely have to get the new accountant to do some of that paperwork at extra cost, but as the company will have never traded it shouldn't be overcomplex. Or you could even make it dormant and never trade.

    Leave a comment:


  • Pete30
    replied
    Originally posted by eek View Post
    Step 2 would be to look at the list of recommended accountants and bin the one you selected - they had 1 task they really should be avoiding and seem to have screwed it up
    The company formation application is already submitted. I'm not sure what will happen if I now move to another accountant.

    Leave a comment:


  • eek
    replied
    Step 2 would be to look at the list of recommended accountants and bin the one you selected - they had 1 task they really should be avoiding and seem to have screwed it up

    Leave a comment:


  • Pete30
    replied
    Originally posted by Fred Bloggs View Post

    What eek says. Not doing it yourself is stupid given what's happening with HMRC. Last year I applied to register a company and I was up and running within 3/4 of an hour.
    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.
    Last edited by Pete30; 28 February 2023, 20:54.

    Leave a comment:


  • Fred Bloggs
    replied
    Originally posted by eek View Post
    WTF are you using your accountant to create a company - do it yourself....

    Literally point 101 of not being a Managed Service Provider is somehow offload the company formation to the person who will be using the limited company.
    What eek says. Not doing it yourself is stupid given what's happening with HMRC. Last year I applied to register a company and I was up and running within 3/4 of an hour.

    Leave a comment:

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