Reply to: 1st Year ltd company - what tax is due?

[Contreras]

- Does the client pay directly to a business account held in your Ltd Co.'s name (rather than direct to your personal account)?

- Have you registered the company with HMRC for PAYE?

the answer to the above is yes and yes. i've been contracting for about 10 years via an umbrella.

Great! So have you filed P35 / P14 yet?

[northernladuk]

the answer to the above is yes and yes. i've been contracting for about 10 years via an umbrella.

Wait till Bolshie sees this. He will have a fit LOL

[chef]

the answer to the above is yes and yes. i've been contracting for about 10 years via an umbrella.

And in those 10 years you never decided to get an accountant????

And when you decided to switch over you still didnt bother getting an accountant before u switched?

[mrnoodle]

Hi,

Definitely get one in place now before your company yearend has passed, that way giving your accountant the best chance of mitigating any corporate taxes you have to pay.

If you had of put one in place before 5th April then there would have been a chance to mitigating any personal taxes or even possibly maximising your tax free dividend allowance but this date has now passed.

Either way I suggest getting one in place now as a good accountant will earn their fees for you in saved taxes.

HTH

Agreed.

[mrnoodle]

Assuming this means that you personally have received "less than £6k since October" ...

- Does the client pay directly to a business account held in your Ltd Co.'s name (rather than direct to your personal account)?

- Have you registered the company with HMRC for PAYE?
If the answer is No to either of these then bend over and get ready to be shafted.



Best take what you have to an accountant and get it sorted then, eh?

the answer to the above is yes and yes. i've been contracting for about 10 years via an umbrella.

[Danielsjdaccountancy]

I'm going to get one this month, I just wanted some heads up what I should expect this year, I've just been too busy to sort it out.

Hi,

Definitely get one in place now before your company yearend has passed, that way giving your accountant the best chance of mitigating any corporate taxes you have to pay.

If you had of put one in place before 5th April then there would have been a chance to mitigating any personal taxes or even possibly maximising your tax free dividend allowance but this date has now passed.

Either way I suggest getting one in place now as a good accountant will earn their fees for you in saved taxes.

HTH

[pmeswani]

No, VAT except at the moment. By the end of the year I expect to have earned enough to pay VAT however.

Have you not heard of the Flat Rate VAT Scheme then? One way to earn a few pennies from Charging VAT. I would seriously get an Accountant sorted out sooner rather than later. If you don't have time to get an Accountant now, I wonder how much time you will have to do your Corp Tax, PAYE, Expenses, etc., etc. when it comes to your Year End.

[Contreras]

I've been contract for a while but just recently started my own ltd company. I registered it in October '11 and started invoicing, no problems.

I've been fortunate that so far I've taken less than £6k since October ...

Assuming this means that you personally have received "less than £6k since October" ...

- Does the client pay directly to a business account held in your Ltd Co.'s name (rather than direct to your personal account)?

- Have you registered the company with HMRC for PAYE?
If the answer is No to either of these then bend over and get ready to be shafted.

I haven't got an accountant yet but I've have been keep financial records, recipts etc... basically what HMRC advises.

Best take what you have to an accountant and get it sorted then, eh?

[mrnoodle]

For personal tax you will need to prepare/submit a tax return for the 2011/12 tax year. This must be filed (and any tax due, paid) by 31 Jan 2013.

Don't wait for the HMRC to contact you - call them on 0845 900 0444. This is the easiest option, but it can be unreliable if you get to speak to a poorly trained HMRC call centre operator. You will need your NI number on hand, and the date you were appointed a director. Tell the call centre operator that you need to get set up for personal self‐assessment because you are a company director. They may tell you that you need to call another number to register as a self employed person. This is WRONG. Tell them it is a requirement that you register for self‐assessment since you are a company director, and that you are NOT self‐employed. If the call centre operator insists that you need to call a different number, then ask to speak with their supervisor.

Thankyou. You confirmed what I thought.

[mrnoodle]

Are you charging VAT?

No, VAT except at the moment. By the end of the year I expect to have earned enough to pay VAT however.

[Sausage Surprise]

Are you charging VAT?

[Greg@CapitalCity]

For personal tax you will need to prepare/submit a tax return for the 2011/12 tax year. This must be filed (and any tax due, paid) by 31 Jan 2013.

Don't wait for the HMRC to contact you - call them on 0845 900 0444. This is the easiest option, but it can be unreliable if you get to speak to a poorly trained HMRC call centre operator. You will need your NI number on hand, and the date you were appointed a director. Tell the call centre operator that you need to get set up for personal self‐assessment because you are a company director. They may tell you that you need to call another number to register as a self employed person. This is WRONG. Tell them it is a requirement that you register for self‐assessment since you are a company director, and that you are NOT self‐employed. If the call centre operator insists that you need to call a different number, then ask to speak with their supervisor.

[quackhandle]

I'm going to get one this month, I just wanted some heads up what I should expect this year, I've just been too busy to sort it out.

Don't forget the CUK levy tax, I will pm you an account number and sort code so you can pay your yearly dues.

qh

[mrnoodle]

If you don't know why didn't you get an accountant???

As a direcotry you have legal responsibility to know and submit your accounts. Not something to be taken lightly.

I'm going to get one this month, I just wanted some heads up what I should expect this year, I've just been too busy to sort it out.

[northernladuk]

If you don't know why didn't you get an accountant???

As a direcotry you have legal responsibility to know and submit your accounts. Not something to be taken lightly.