[joe.b]

hey everyone, recently ive changed into a limited company, everything at the moment on that side is ok but i was wondering how i rap up all my self employed bookkeeping etc, exactly what do i need do and what do i need to show.

oh and two other things if ive brought something on my business account that i cant put through as work expenses what should i do. and secondly my insurance comes through monthly so how do i give a receipt for that?

thanks for any help

[twt]

your accountant will help you with all of these things. and so he should because you will be paying him. enough

[joe.b]

thats the thing i dont want pay an accountant for the little amount there is at the moment, just wondering if there was anyone on here to give us a little help

ta

[Trevor Knight]

Limited company has to have accounts published! You may well seek advice form a qualified accountant as you have very strict working practices to adhere to as a limited company!

You wind up your self employed business as if you have now got a new job. Finish your accounts and submit them. You are PAYE in a Ltd company and will now have to pay Employers tax and NI as well as change your insurance policies. You will also need to provide pay slips for your income as well.

If you purchase an item that is not business related using your business account you are already breaking the ethical way to run a Ltd company. Any money you take out for Non related Ltd company expenditure should be in the form of wages or a company loan. Don't start taking bits here and bits there, the tax man will be on you like a rash!

Your insurance should be presented as a bank expense on a monthly basis as a DDM. The invoice is your policy schedule which you offset monthly as a running credit.

Having said all this, speak to an accountant, if your turnover is reasonable you should get away with accounts compiled and submitted for £500 p/year.

[Clive McDonald]

sage is a good program, and you can take a course.

You are always going to need an accoutant as above, but the more you can learn the better.

If you phone IR they are okay, as a 'new' starter you've got a little bit of leeway, they tend to get you 6 to ten years down the line.

[steve m]

dont forget to cease self employment either

[davids3511]

Hi Trevor

That is just not factual. Why would he pay employers tax and NI? All he has to do is take a directors salary of 5k and the rest as dividents. Once he doesn't go over about 40k he will pay about 20% on anything over the first 5k and that is that. No NI at all. If he is using his own vehicle he can claim a further 40p per business mile travelled for the first 10k miles and 25p for every mile there after.

In fact it is better for anyone earning over 10k to be a ltd company to save on the NI payments.

David

[ronnie paton]

So any one earning over 10k is better of being ltd y is this??
my account as advised i stay at a soul trader.
Wot are the pluses and negs of being a ltd company?

[Trevor Knight]

Hi Trevor

That is just not factual. Why would he pay employers tax and NI? All he has to do is take a directors salary of 5k and the rest as dividents. Once he doesn't go over about 40k he will pay about 20% on anything over the first 5k and that is that. No NI at all. If he is using his own vehicle he can claim a further 40p per business mile travelled for the first 10k miles and 25p for every mile there after.

In fact it is better for anyone earning over 10k to be a ltd company to save on the NI payments.

David

Corporation Tax on a Ltd comapny is based on your profit which you cannot deduct your dividends from. i.e. if you make 10k profit and take 5k as dividends you STILL pay 20% on the 10k!

40p a mile is only up to 10k miles after which you can claim 25p? The 40p is inclusive of upkeep and maintainance whereas a company vehicle is 100% deductible regardless of what the expense?

So, if your a ltd company and you then have the audited accounts, legalities that come with Ltd status and all the companies house legislation and your doing this just to save NI? As soon as you need to finance loans etc.. you will find it very hard when only drawing a minimal income which based on a code of 522L is £435 p/m, you wouldn't be able to raise finance for a shoebox for that income?

As soon as you employ someone you then have employers NI and Tax?

Insurance polices MUST change as you are now an employee of the limited company.

Whatever way you choose to run your business , as long as it works for you and your happy thats all that matters.

[KarlJones]

I would see an accountant ASAP and get a few tips, this is not really the place for the level of expertise limited companies need.  You never know he might put to you that it is not worth the trouble. There are some benefits to being a sole trader, and some to being a limited company. 

example.
One of the things you should ask him about is "goodwill".  If I remember correctly you can sell your window cleaning round to your limited company.  Goodwill is not normally tax deductable, however, I believe that when transfering goodwill from a non-limited company to a limited company it is (ie the limited company gives you the correct market amount for the goodwill). 

Like I said, ask your accountant as it is way too deep for assumptions like the one I just made, and any others you read about saving ect to be relied upon.

Personally, if I was less than 50k (which obviously I am no where near), then I would not bother.  Frankly you could earn more (assumption) canvassing good work than you would save spending the same time doing paper work.  But ask your accountant as he knows more about you and the subject than anyone on here.

[twt]

thats the thing i dont want pay an accountant for the little amount there is at the moment, just wondering if there was anyone on here to give us a little help

ta

ARE YOU INSANE how do you expect to run a limited company without an accountant i think you are required by law to use a charted accountant if you are ltd not 100% sure though. also why have you become ltd without having had proffessional advice before hand. alot of the advantages of being ltd are no longer there. finally if you are doing well enough to justify being a limited company why are you being so tight about paying a accountant a good accountant will save you at least the money you pay them.

[joe.b]

right can i just check, when sole trader, you pay just one tax and ni, but when your limited company you pay two dont you?

thanks for the replies

[Moderator David@stives]

I think you are a bit premature going ltd all i can see is problems and complications and no advantages for you.

Dave