Cost and effort of operating a Limited Company?

[Wanderer]

Thanks. So it is possible to do this (in this simple case) without knowing much accounting, without paying for accounting software, and just electronic filing?

In my opinion and based on personal experience, no. You will probably mess it up and then get fined several hundred pounds. If you are based in a different country then there may be other possibilities for you to avoid UK tax but its going to be complicated and you will need professional advice.

You are best to get an accountant for the first year at least and then do it yourself from then on if you feel confident.

If your business is really simple then have a talk to a few accountants and see if they will do a special deal for you rather than a monthly fee or at very least have a detailed discussion of your circumstances and advise you on the best way to structure your business.

If you get this wrong from day 1 (eg, by following the Do It Yourself route) then it may end up costing you dearly. People won't listen to that advice because all they see is the up front cost, not the long term benefit of doing it right the first time.

[northernladuk]

Thanks. So it is possible to do this (in this simple case) without knowing much accounting, without paying for accounting software, and just electronic filing?

In my case there are some extra costs like registered office etc. but I can figure out those.

A good accountant only costs about £150 a month (claimable against tax ofc) and will pay for themselves by pointing out where you can save tax and run the company most efficiently. They can also save you from fines and filing incorrectly if you are not sure about accountancy. Remember you are legally responsible for a company's finances so not something to be taken lightly, particularly when getting a professional is so cheap. They also offer you a service to ask questions of which can also prove invaluable and is much better than relying on free advice which will dry up very quickly when people get sick of running your affairs for you.

[JavaBrussels]

Thanks

The company formation costs about £20. You need to file an annual shuttle return each year costing £13 per year. You can get business banking for free, and it costs nothing to register your company for VAT if that is what you decided to do. If you decide to do you own accounts (use the free HMRC joint filing service), VAT returns, look after you own personal tax situation etc etc then I reckon your minimum yearly costs will be £13.

If you decided to work self-employed instead, then you could get this down to £0 per year.

Although you can't open a bank account from your bedroom, I think you'll be able to do pretty much everything else.

Thanks. So it is possible to do this (in this simple case) without knowing much accounting, without paying for accounting software, and just electronic filing?

In my case there are some extra costs like registered office etc. but I can figure out those.

[northernladuk]

If I start a limited company. What is roughly the minimum cost and effort in fulfilling my legal obligations (accounting etc.) pr year?

Say I just have a few invoices (possibly international) and no expenses and no VAT.
What if I do VAT?

Can I do everything from my bedroom?

The fact you have to ask all these questions then the answer is no.

Get an accountant and get one quickly. He will pay for himself tenfold looking at your lack of knowledge and will also point out a wealth of information you are not aware of. Don't run a business off the back of a free public board. Get a professional to help you.

[Greg@CapitalCity]

The company formation costs about £20. You need to file an annual shuttle return each year costing £13 per year. You can get business banking for free, and it costs nothing to register your company for VAT if that is what you decided to do. If you decide to do you own accounts (use the free HMRC joint filing service), VAT returns, look after you own personal tax situation etc etc then I reckon your minimum yearly costs will be £13.

If you decided to work self-employed instead, then you could get this down to £0 per year.

Although you can't open a bank account from your bedroom, I think you'll be able to do pretty much everything else.

[malvolio]

If I start a limited company. What is roughly the cost and effort in fulfilling my legal obligations (accounting etc.) pr year?]

Not much

Say I just have a few invoices (possibly international) and no expenses and no VAT.
What if I do VAT?

What if you don't? Will anyone notice?

Can I do everything from my bedroom?

It depends how big your bedroom is.




Might I suggest some preliminary reading is in order....

[JavaBrussels]

If I start a limited company. What is roughly the minimum cost and effort in fulfilling my legal obligations (accounting etc.) pr year?

Say I just have a few invoices (possibly international) and no expenses and no VAT.
What if I do VAT?

Can I do everything from my bedroom?