HI Kerwin
Companies House has guidance on what is needed for statutory micro accounts.
but HMRC have some great guidance on what you need to do, what you can claim etc
Basic rules:
- record everything you use for your business (keep receipts for expenses and record mileage)
- raise dated sales invoices with sequential numbering and company details for every sale.
- open a business bank account, but in the early stages remember to keep track of any expenses that you pay privately due to cashflow constraints (these represent money you are loaning the business, which can be repaid once funds are available).
- When taking money out of the business (in payroll or dividend), don't forget to leave enough profit to cover the corporation tax (roughly 19% or pre-dividend, post payroll profit).
- Late filings of accounts and tax returns incur penalties. Companies House accounts filings can be done via HMRC filings. CT payable 9 months after year end. HMRC does have free accounts and tax return online filing functionality, but a friend of mine did find it very difficult to do on their own.
- think carefully before registering for VAT. The additional administration costs/responsibilities may mean that its not worthwhile. It depends on what you are selling, who you are selling to and how much VAT you pay within the expenses supplied to your business. Once you reach £85k annual turnover it is compulsory, before then it is your decision.
If you are only just setting up, I would recommend that you consider a Tide Banking Account. All the set up in online, with no monthly bank fees, which includes sales invoicing and expenses categorisation capability. This basic accounting functionality may keep you going for a little while, unless you need payroll or project management functionality. I am a Tide Partner and can get you a preferential deal.
If you want more comprehensive accounting software then ask an accountant to provide it. We often get special deals on software licences, plus you have someone on hand to set you up and to ask the odd question during the year. I am a Xero Partner (desktop and mobile accounting) and I have discounted subscriptions up to March 2020 available at the moment. Other accountants may use other software, just make sure you choose cloud software.
Re Buying a book.... hmmm... even as an accountant, I find them deathly boring. I'm more of a hands on sort of girl and with things moving into the cloud, some books may be becoming outdated. Just remember evidence and document what, when, where, who and why.
Good luck with your new exciting adventure.
