No contract and LTD Co - options?

[smee.again]

Ah...Brooksons again...

[diesel]

Sounds like you were taking out too much money from your business and not planning for a rainy day? The nature of the business is that there may be times when you are out of work and you need to anticipate these. It also depends on what your future plans are; are you planning to continue contacting? You accountant still needs to do your company admin/returns/accounts so he will still be doing work for you even though you dont have work. If you are planning to continue contracting you may try and negotiate a discount with them for being out of work, or look for a cheaper option (27 pounds per week is a little pricey in my opinion; you can easily find something for 60 quid a month, thats half what you are paying at the moment).

Hi, the money i have been taken out is determined by Brookson each week. They base thi son each weekly invoice i am paid from end client for my hours work. They paid a directors fee and rest as dividends. Hence, as i will not be working probably for around 2 mths there is no "spare" unallocated cash to pay me with.

I do hope t go back to contract within 2 mths, but that all depends if i can find new work. But if i get no new firm leads within 2mths i will have to claim some tax credits and consider signing on.

[backagain]

Sounds like you were taking out too much money from your business and not planning for a rainy day? The nature of the business is that there may be times when you are out of work and you need to anticipate these. It also depends on what your future plans are; are you planning to continue contacting? You accountant still needs to do your company admin/returns/accounts so he will still be doing work for you even though you dont have work. If you are planning to continue contracting you may try and negotiate a discount with them for being out of work, or look for a cheaper option (27 pounds per week is a little pricey in my opinion; you can easily find something for 60 quid a month, thats half what you are paying at the moment).

[TheFaQQer]

It's going to cost you money to shut it down - you still need to do end of year accounts, returns etc. before Companies House will let you close the company.

You will need accountancy knowledge to do that.

I'd either move to a different accountancy that won't charge if the company is dormant, or suck it up and pay what you said you'd pay.

[diesel]

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!

[diesel]

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?

[oraclesmith]

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.

[KathyWoolfe]

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.

[diesel]

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??

[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.

[Old Greg]

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

[diesel]

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]

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]

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