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Hi,
I am looking at opening a new business [LTD]. I have a few questions:
1. What would you advise to budget for the first years accounts based on a max turnover of 50k?
2. Is it advisable to register a company name that has been dissolved in 2012 through voluntary insolvency?
3. What should I look for in an accountant?
1. Don't know
2. Ive heard it's quicker to use a dissolved co. But no real other reason
3. Reccomendations - if it's for IT I can reccomend one im about to start using and a good 5+ mates use without complaint.
I'm looking to go limited this year too, just waiting for the accountant to call me back to arrange a meeting so if I have any info I will post it in here. I was referred to this accountant by my existing accountant who doesn't deal with limited companies any more but don't know how to compare him to others. He is 10 minutes away which is a plus.
There's no reason why you should do this other than if you really want that company name. Your trading name can be different to the company name so any company name would do.Quote:
Originally Posted by hilljd00
If you do the online application in the morning the company is usually incorporated by the afternoon, although the quickest i have had was 10 mins from payment to incorporation.
Turnover in itself has no bearing on the accountants fee - your £50k turnover could be 50000 * £1 on ebay or 1 * £50000 invoice to a customer and it all comes down to the amount of time they take to process. For full statutory accounts, CT returns and all the filing together with your personal tax return could be anything from say £750 +
Keep decent records yourself - make sure that all expenses are analysed out to correct headings, all bank transactions are enetered etc as this all helps to keep the fee down. Also don't use the company bank account as if it's your own, transfer wages+dividends from the company to personal and only use the company account for legitimate business expenses.
Previously dissolved company makes no difference, if it's the name you want then go for it but apart from that there's no real pro's or con's. Online formation is normally same day either way.
Look for someone that you can get along with, someone that's on your side and not the taxmans that will steer you towards what you can do legally without putting yourself at risk - too far either way is shite imo
Do you actually need to be ltd, tax wise it's more efficient but there is the additional cost and administration involved. I tend to recommend once profit is over the £20000 mark subject to individual circumstances and other factors such as cars used and mileage travelled.
I use www.crunch.co.uk - everything online, flat monthly fee so you can budget easily.
If you sign up feel free to use mw10898m as referral code, that will get you 25 quid of amazon vouchers - and some for me too ;)
Bear in mind with crunch, SJD, Nixon Williams etc you do get a very automated procedure - there is very little help/review of what you are doing and how you can improve it. Tbh with the *from* prices they're often no cheaper than you'd get from a local accountant either.
you can always ask for a review, I've never had to personally, price wise end of year accounts are likely to be around 700-1000 from a local accountant, but you'd need to then manage all the paper work, forms etc, whereas the online accounting systems do it for you (there's freeagent, but after factoring in accountant costs, it's usually not cheaper than crunch etc)
I really don't worry about any of my business accounting apart from the 1st of the month invoicing my clients and putting expenses in, import the bank statement and reconcile. All done within half an hour. It also deals easily with multiple currencies for my european clients and flat rate vat.
What system are you entering into out of interest? Always interesting to see what people are using
Bloody hell - just been to see my new one today. Very thorough but bit of an accent and spoke quickly so following figures (double entry book keeping) on tax expenses tax on company, tax on me if I do y NI, company NI. IR35 (hopefully not an issue) left my head spinning.