Setting up a Limited Company

[chris79]

Correct. I've mentioned this before several times. Having your accountant as your company secretary is asking for trouble. It mystifies me why accountants still offer it as a service, unless it is sheer negligence.

Unless of course you like to see your money paid to you in full PAYE, then the tax man might not really care.

No seriously, best thing to do is incorporate your company (same day, ~£30), get a business bank account, purchase appropriate business insurances (EL/PL/PI/etc), then decide if you want to do your own book keeping and tax returns/affairs and understand how to run and work this, or pay an accountant to help you do this.

If you ask an accountant to do "everything" for you, then technically they are working as a managed service company and you should be receiving your wage in full PAYE, rather than a salary and dividends.

[THEPUMA]

I think it's a good idea to do it yourself, it's not rocket science and you will know how to run YOUR company, not rely on accountants to do everything for you, which then leaves you in dodgy ground in terms of who is actually managing the company (MSC laws).

Correct everyone?

Correct. I've mentioned this before several times. Having your accountant as your company secretary is asking for trouble. It mystifies me why accountants still offer it as a service, unless it is sheer negligence.

[chris79]

I think it's a good idea to do it yourself, it's not rocket science and you will know how to run YOUR company, not rely on accountants to do everything for you, which then leaves you in dodgy ground in terms of who is actually managing the company (MSC laws).

Correct everyone?

[Alan @ BroomeAffinity]

Vectraman - I was going to mention the extra chrges at SJD but thought better of it in case it was assumed to be marketing. Thanks!

Our fixed fee includes RO and secretary services. Although you don't need a secretary now, the banks haven't yet caught up so its as well to have one.

Our free set-up includes bank account, and VAT and PAYE registration although you do still need to sign the forms, we do everything else.

[VectraMan]

Think I used UKplc - cost about £30 - the fact that CH encourage you to do it direct with them tells you it's not difficult..

Yes I used them for Plan B Co. Much better than the people I used for Plan A co.

I found when it came to doing the first annual return, not using the accountant caused a little bit of a headache, though not much of one. If it's free, I'd let the accountant do it. I wouldn't pay £125 though. SJD also charge twice as much for a registered office and company secretary service.

[Alan @ BroomeAffinity]

You'd rather pay for the incorporation than get it for nowt. And then having been fleeced by the company, stick with them and give them the opportunity to fleece you again? OK.

[Bluebird]

Think I used UKplc - cost about £30 - the fact that CH encourage you to do it direct with them tells you it's not difficult.

Anything more that £30 and they are just fleecing you.

I can't see how SJD justify the amount you mention, I though they were ok, but their fees for a lot of things seem on the pricey side.

Don't forget loads of "other" businesses do this without accountants.

If you can't be bothered then fine, but don't moan about the price you pay.

[NotAllThere]

... but it sounds like it may be best to get them to do it if they are going to be my accountants.

Why? I can't quite follow the logic there. Unless they throw in a few other bits an pieces that they'll charge you for anyway. Accountancy is accountancy. Company formation is company formation. Save yourself a few quid - get the company set up by one of the online johnnies. You can even tell SJD that your doing this; I doubt very much they'd mind.

[DiscoStu]

Thanks for the replies.

I've been speaking to SJD Accounting and they have been very helpful so far so am thinking about going with them. They can do the set up for £125 which seems a bit expensive, but it sounds like it may be best to get them to do it if they are going to be my accountants.

Nixon Williams will do it for nothing if you use them for your first year.

[Reporter]

Thanks for the replies.

I've been speaking to SJD Accounting and they have been very helpful so far so am thinking about going with them. They can do the set up for £125 which seems a bit expensive, but it sounds like it may be best to get them to do it if they are going to be my accountants.

[VectraMan]

There's online companies that'll do it for as little as £30, or less. Having done this though I'd suggest that you let whatever accountant you're going to use do it as it'll save on hassle.

However, you are the director which means you are the one that has to sign things like VAT and bank account applications. The accountant can only do so much for you.

[Alan @ BroomeAffinity]

We'll set up your company for free. PM me if you like.

(Pardon the shameless marketing)

[blacjac]

Most of the main contractor accountants (search this board) will set up the company for you free if you use their accountancy services.

[KevinS]

Personally, I used an accountant and it was well worth the money (VAT, FRS included).. I have subsequently registered another limited myself, but used one of the online companies (cost about £60) for the registration and articles.. Done all the HMRC stuff myself after they sent me the docs..

[Reporter]

I've been contracting for 2 or 3 years using an Umbrella and am now going to set up a Limited Company.

Any advice as to wheter to use the services of an Accountant to set up the Limited Company (seems to cost approx £125) or is it fairly easy to do yourself?

I've been looking at the Companies House website and I can see there are 4 forms to complete but not sure what additional work I would need to do with regard to VAT registration, business bank account, etc.