Ltd Company and Tax Advice

[upnorthal]

I was wondering what the going price is for an accountant to set me up a dormant limited company? My business venture will involve a service provided to corporate customers in the event world. I belive I need a Ltd company to be taken seriously.

I need the accountant's address as the registered address initially. Furthermore, I would require some basic advice on what is required for the £15 online return that I would legally be responsible for producing each year for Companies House.

Further more, I need some tax advise. Put simply:-
I lived at my property in Hampshire between 2000 and 2007. I purchased this house as my main residence and lived in it for this time.

In August 2007 I rented my property out through a letting agent for six months. During this time my house was up for sale and I was living paying rent in another address.

I sold my house in May 2008, end inthe end I made a profit of around £20k.
I've did my self return tax assessment 2007-2008 and I didn't have to pay any tax. (well I barely covered the mortgate on my house for the six months as the rental agents fees were very high).

I'm going to have to do my tax return for the financial year 2008 to 2009.

I'm really worried I'm going to be hit for capitals gains tax on the profit from my house sale. This is the only house I have ever rented out or owned. I am employed and my earnings from my employer for this year were probably just below the threshold for the 40% tax rate.

Am I best off instructing an accountant on these matters, or is what I am asking fairly straight forward?

Cheers

Al

[Maslins]

Think you're best off finding an accountant near you that you get on with and who's expertise you trust.

Setting up a dormant Ltd Co is easy, you can get an online Co formation agent to sell you one for ~£50.

Annual return, again pretty easy.

Year end statutory accounts and tax return not so easy, though whilst it remains dormant you probably can do yourself. Once trading I wouldn't recommend doing it yourself.

You should have declared the rental profit from your buy to let (I appreciate you probably didn't see it that way, but that's what you had, albeit for a short time). You can offset your mortgage interest (not capital) and a few other bits and pieces against the income, but NOT the rent you paid on place you were living in.

You're unlikely to have a CGT bill, as the house was your principal primary residence (PPR) for most of the time, and you effectively get an additional 3 years after you move out where it still counts for PPR relief.

[upnorthal]

Hi Chris

I did tell the Inland Revenue I was going to be renting my house out - hence the reason they made me complete the self assessment process.

I also clearly stated my rental income on my 2007 to 2008 assessment. :)

I will definatley instruct an accountant to do Ltd companies when I start trading. I really struggle to understand some of the accounting concepts and I want to run everything 100% legit.

Would you instruct an accountant for my self assessment query, or should I just phone a specialist IR personn and explain my situation. I've got nothing to hide and I think my case is pretty straight forward. I was just worried in case they tried to make out I had done something underhand (which I genuinely have not knowingly done!).

Thanks for your reply.

Cheers
Al

[elainec100@cheapaccounting]

you seem pretty clued up - so why not read the capital gains notes first and then see if you can handle yourself:

http://www.hmrc.gov.uk/worksheets/sa108-notes.pdf

I think you may be able to do it yourself but if you can't after reading the above then instruct an accountant.

Good luck

[elainec100@cheapaccounting]

and this sheet:

http://www.hmrc.gov.uk/helpsheets/hs283.pdf

[upnorthal]

Thanks.

I will have a read though that. :)

[Woodcrest Accounting Serv]

There are many positive and negatives for starting a limited company- have you read the sticky at the top of the forum on limited companies?

[upnorthal]

I've read the stickies and done some forum searches.

I do believe the Ltd company would be important as I am planning on my customers being corporate. Also, the fact that I will be providing a mission critical software solution, I like the legal protection that a Ltd affords. Of course, I would still look to take out some form of professional insurance.

So, in essence it would really be part of the company image to start with.
Also, if I register the company's domain, I want the Ltd company to go with it (I've already come up with the name which I quite like).

Cheers
Al

There are many positive and negatives for starting a limited company- have you read the sticky at the top of the forum on limited companies?

[DickM]

I've read the stickies and done some forum searches.

I do believe the Ltd company would be important as I am planning on my customers being corporate. Also, the fact that I will be providing a mission critical software solution, I like the legal protection that a Ltd affords. Of course, I would still look to take out some form of professional insurance.

So, in essence it would really be part of the company image to start with.
Also, if I register the company's domain, I want the Ltd company to go with it (I've already come up with the name which I quite like).

Cheers
Al

I had some Ltd Co insurance quotes once, when assigned to Ford Motor Co by my agency. The premiums were mind blowing, (£000's for an office based task), so I said that I would have to decline. Next thing the agency was on the phone saying never mind about the insurance ;)