Hello, Im new and have questions about HMRC

**cojak** · 5 September 2013, 19:18

You need to hire an accountant - you have made too much of a mess with your company and accounts for us to help you.

Read the First Timers guides here First Timers Guide - for IT Contractors :: Contractor UK and go to the Accounting / Legal to find an accountant.

**reno** · 5 September 2013, 22:43

Is it that bad? (you sound like I’m going to go in jail or something

I'm quite in panic to be honest now)

I mean, I thought it was just a « delay problem », I kept everything important (papers) about this very small company and thought I could be my own accountant.

For example, I only made 5 or 6 invoices, and I didn’t have to buy anything for the company except a new computer, it’s not “insurmountable” for just one guy like me to calculate my taxes right?
It’s not like if I had many expanses or many clients, I just had one client and made 5 or 6 projects (so let’s say 6 invoices), that’s it.

And now my contract with this client is over so the company will be dormant for a while. (or until I find an other client)

What I need to know is… What “status” should I chose on the HMRC website to apply for the tax payment. I think there is a better option than other for me; this is why I’m asking some advice.

I just want to make ready to pay this, even if that means spending a day to calculate everything I have to pay, it will be worthy because I can’t afford an accountant unfortunately.
And to be honest, in my case I’m pretty sure I don’t really need an accountant to handle less than 10 invoices, the real problem is about knowing “where to go” or “what to choose”, for I will be glad to pay my taxes if I just get to the right “online form” or whatever it will be.

My only mistake is to have forgotten to tell HMRC that my company was in business (first income 22 November 2012) so I should have told them before 22 February 2013… I hope it’s not a serious thing, I wasn’t aware of it, I probably missed the letter with that information but I had the one telling me that my accounting period is this month.

I just want to do it and apologies for the delay about letting them know the company was not dormant.

**northernladuk** · 5 September 2013, 23:07

Originally posted by reno View Post

Is it that bad? (you sound like I’m going to go in jail or something

I'm quite in panic to be honest now)

I mean, I thought it was just a « delay problem », I kept everything important (papers) about this very small company and thought I could be my own accountant.

For example, I only made 5 or 6 invoices, and I didn’t have to buy anything for the company except a new computer, it’s not “insurmountable” for just one guy like me to calculate my taxes right?
It’s not like if I had many expanses or many clients, I just had one client and made 5 or 6 projects (so let’s say 6 invoices), that’s it.

And now my contract with this client is over so the company will be dormant for a while. (or until I find an other client)

What I need to know is… What “status” should I chose on the HMRC website to apply for the tax payment. I think there is a better option than other for me; this is why I’m asking some advice.

I just want to make ready to pay this, even if that means spending a day to calculate everything I have to pay, it will be worthy because I can’t afford an accountant unfortunately.
And to be honest, in my case I’m pretty sure I don’t really need an accountant to handle less than 10 invoices, the real problem is about knowing “where to go” or “what to choose”, for I will be glad to pay my taxes if I just get to the right “online form” or whatever it will be.

My only mistake is to have forgotten to tell HMRC that my company was in business (first income 22 November 2012) so I should have told them before 22 February 2013… I hope it’s not a serious thing, I wasn’t aware of it, I probably missed the letter with that information but I had the one telling me that my accounting period is this month.

I just want to do it and apologies for the delay about letting them know the company was not dormant.

Have a read of this..
http://www.charlesrussell.co.uk/User...sibilities.pdf

It might be a bit old as it mentions there must be a company secretary but in detail look at..

Page 6

The Duties of Directors
Historically directors have owed both fiduciary and
general duties to the company which are founded
on case law. The 2006 Act introduced a statutory Directors’ Responsibilities
6
regime for directors’ duties which effectively
replaced the previous duties, although the Act does
state that the general duties in the statute should be
interpreted and applied in the same way as the
common law rules and equitable principles.
The 2006 Act sets out seven statutory duties being:
• duty to act within powers;
• duty to promote the success of the company;
• duty to exercise independent judgement;
• duty to use reasonable care, skill and
diligence;
• duty to avoid conflicts of interest;
• duty not to accept benefits from third parties;
and
• duty to declare an interest in a proposed
transaction or arrangement with the company

Care and skill goes on to explain on page 7

Duty to exercise reasonable care, skill and
diligence
The 2006 Act requires that a director must exercise
the skill and care which a reasonably diligent person
with both the general skill and experience of
someone carrying out the functions of the director in
the company would be reasonably expected to have
and the skill and experience which the director
actually has.
This means, at a minimum, the director must show
the reasonable skill and care expected in the first
test but if he has further subjective knowledge, the
standard will be heightened to account for this.

Failure to do this could lead to a director to be disqualified under the Company Directors Disqualification Act 1986 which would be the end of any chance to be a contractor through a LTD co.

Forgetting to tell HMRC pretty basic yet important things isn't really exercising reasonable care, skill or diligence is it..

Enjoy your evening...

**reno** · 5 September 2013, 23:41

Failure to do this could lead to a director to be disqualified under the Company Directors Disqualification Act 1986 which would be the end of any chance to be a contractor through a LTD co.

Forgetting to tell HMRC pretty basic yet important things isn't really exercising reasonable care, skill or diligence is it..

Enjoy your evening...

I felt pretty bad before your message, but now I’m almost good because I know you are more to be pitied than me. (But I am not delighted at it, I just feel sorry for you)
I want to do well at meeting my obligations... I had to move to a new flat shortly after the company setup, maybe that's why I didn't had the 3 months HMRC info-letter (not here anymore to take the letter, and it took a week to notify my new address to everybody), I am not of bad will but I admit I was a little carefree about it. (more focused on this new work and new life, even new language)

I may have to pay some penalty about it... (as written in the letter I got yesterday, but it seems that you don't have to pay it if they think it's a small involuntary mistake)
According to this: http://www.hmrc.gov.uk/ct/change/problems/penalties.htm

… I don't think I deserve to be hung. I’m still not over my accounting period and I will be able to do it on time after all. Just forgot to notice my activity.

The question here was just… WHO I AM? A director of a limited company, or a Self Employed guy?
I think I found the answer, I am both. So I have to fill 2 different applications for taxes. (?)
One for the company, and one for the only “employee” which is myself.
As a “one person company” without almost any invoices, the accounting should be pretty straightforward to be done by myself I assume.

**Wanderer** · 6 September 2013, 07:11

Originally posted by reno View Post

I can’t afford an accountant unfortunately.

The money an accountant will save you will easily cover the cost of their fee. You can't afford to NOT have an accountant.

If you mess it up then you will pay fines and penalties as well as the tax you owe. Ignorance of the law and saying "I didn't know I had to do that" is not going to be a valid excuse. Also, you will not arrange your company affairs in the most tax efficient way without an account's advice and this will involve paying a lot of tax that you could have quite legally avoided. They will also help you avoid being fined for late/non filing of paperwork.

Originally posted by reno View Post

And to be honest, in my case I’m pretty sure I don’t really need an accountant

Sorry but you are wrong.

There are many contractors here running LTD companies and you will find that the majority of them (even ones who have been in business for years) will have an accountant. You can keep asking us but that will be the answer.

Have a read of the recommended accountants discussion and choose yourself an accountant.

**northernladuk** · 6 September 2013, 07:47

Originally posted by reno View Post

The question here was just… WHO I AM? A director of a limited company, or a Self Employed guy?
I think I found the answer, I am both. So I have to fill 2 different applications for taxes. (?)
One for the company, and one for the only “employee” which is myself.
As a “one person company” without almost any invoices, the accounting should be pretty straightforward to be done by myself I assume.

You pity me and then write this? LOL

**cojak** · 6 September 2013, 07:58

Originally posted by reno View Post

I

The question here was just… WHO I AM? A director of a limited company, or a Self Employed guy?
I think I found the answer, I am both. So I have to fill 2 different applications for taxes. (?)
One for the company, and one for the only “employee” which is myself.
As a “one person company” without almost any invoices, the accounting should be pretty straightforward to be done by myself I assume.

Yes, Corporation tax and personal tax. But it's all a bit pointless if your company is closed down.

Use a bookkeeping package like freeagent, or use Crunch accounting.

**Scruff** · 6 September 2013, 08:08

Reno

Veuillez charger un comptable, s'il vous plait?

You are naive if you think that you can dig yourself out of the hole you have dug for yourself. Clearly, this is possible, but not probable...?

**Clare@InTouch** · 6 September 2013, 08:32

I'd recommend that you call a few accountants - even if you don't decide to take up their services they may be able to answer a few of your questions.

Wanderer is spot on though, a good accountant will save you far more than they cost you. It sounds like you could be heading for penalties for late filing and/or notification, and if you don't know the difference between the various taxes then it's likely you haven't structured your payments in the most tax efficient manner. If you're paying wages you need to be running RTI too for example. Are you registered for FRS?

A couple simple bits of advice would save you more than the fee.

Hello, Im new and have questions about HMRC