Ltd company

[Billy68]

i pay £700 if you live in the northeast pm me and ill give you my accountants details shes good

[Paul Smith]

i pay £700 if you live in the northeast pm me and ill give you my accountants details shes good

 

Very expensive! My accountant does all my stuff for under £400.

[Pedroski]

Very expensive! My accountant does all my stuff for under £400.

Are you married to her? Or is she with an accountants firm? I can't find an accountant that cheap anywhere!

[benedmonds]

Are you married to her? Or is she with an accountants firm? I can't find an accountant that cheap anywhere!

 

Do you want a cheap accountant? You might get what you pay for?

[Ford Ranger]

Hi guys

 

If I may add my twopenneth. I have this very conversation with clients at least twice a month every month.

 

I'll go thru a short list of ='s and -'s. you can then decide for yourself which is the best option for you and your business at this or any other particular moment in time.

 

1. Partnerships are easier to set up and cheaper to run. As long as you have a good partnership aggreement written before commencement of trading.

2. Until such times as the business is t/o in excess of £55-60K per partner the admin/tax/admin savings are very much in the partnerships favour. Obviously the closer the business gets to this threshold so the balance swings the other way.

3. If you are concerned about personal financial liability as a partnership you can take out insurance. Bear in mind that this is not tax deductable!

4. It is easy to set a limited company up. You can do it yourself on line for as little as £35. You will need to get 2 other legal forms which you get from HMSO completed and noterised which will cost you an additional sum of about £60.

5. You can register a limited company name at Company's House and hold it in reserved for as long as you continue paying the yearly fee and sending in your annual forms.

6. The main advantages of being a limited company are you accountsants ability to move the tax goal posts around in the company's favour. However this comes at a cost in additional admin and accountancy costs. However accountancy costs are tax deductable. There is no selfassesment tax submission for Limited companys.

7. All directors of limited company's are now required to draw a salary. This however is not subject to the R&R regarding minium wage.

8. Directors salaries are subject to personal NI contributions as well as tax, and the company is also liable for employers NI contributon on all salaries.

9. However tipping the scales toward a income derived largely from dividends has a knock n effect in regards to company and personal pension allowances.

10. Taking you maxium 20% tax band salary and topping up your income from the dividend pool is often the most popular solution for directors. Depending upon other income streams of course.

12. Dividends are not subject to NI and are taxed at a lower rate than salaries. Your accountant with advise.

11.Always give ample consideration to partners and directors insurance. Seek advice from your IFA.

13. It is advisable to ensure you have adaquate Professional Liability Insurance as well as the other statatory insurance requirements. 3rd Party and Employers insurance etc

14. All company vehicles that have a personal usage are subject to tax.

 

The above is not a comprehensive list but it should give you a start into understanding the differnces and the various complexities of running a legal business be it as a sole trade. partnership or limited company.

 

My advise to anyone is to seek professional advise before making any decisions. Guessing or taking a stab in the dark inevitably ends up costing more in the long run.

 

My advise is to alway base your decisions on what is right for you, your partners/dirctors and the business at the time. Act early and don't prevaricate. Business's that are well managed survive, those that aren't eventually go to the wall.

 

For those looking for more free advise before deciding to spend some money with a professional advisor, accountant or IFA. The BusinessLink web site has an absolute mass of information and advice that is easily understood and in continually being updated. Business support, information and advice | Business Link.

 

p.s. No I am not touting for more clients, I'm getting ready to retire. But if I can help via the forum, I will.

 

 

Atb FR

Edited April 20, 2012 by Ford Ranger

[volvo]

Very expensive! My accountant does all my stuff for under £400.

 

I wish mine was £400 but then again as benedmonds says.

Are they just a home bookeeper if they are they can't finish off a ltd companies books.

[Ford Ranger]

Just as anyone can call themselves a tree surgeon. Anyone can call themselves a book keeper and anyone can call themselves an accountant

However only those who have past the neccessary qualifications can call themselves chartered accountants or chartered foreters.

Any one can be an insurance broker but only those who had pasted the relevent FSA qualifications are allowed to operate as IFA's

[Pedroski]

FR, item 4 in your list, please could you clarify? The fee for incorporating on-line is £18, and the documents for memorandum of association are authenticated electronically. Which are the 2 forms that need to be notarised?

[volvo]

FR, item 4 in your list, please could you clarify? The fee for incorporating on-line is £18, and the documents for memorandum of association are authenticated electronically. Which are the 2 forms that need to be notarised?

 

Can you not get your accountant to do all the registration work.It doesn't cost much more.

[Paul Smith]

Are you married to her? Or is she with an accountants firm? I can't find an accountant that cheap anywhere!

 

No, not married to her! take a look! Home - LJROSE ACCOUNTING

Edited April 20, 2012 by Paul Smith