I'm looking for an accountant

[garyscottadamson]

I'm a web designer and have one single client that pays a fee every month. As I'm a student, this is my only client and it takes up all of my time.

My company is limited and I want to take every penny that I can out of the company. (My company is essentially me and my laptop)

I'm looking for an accountant to figure out how much tax is owed by me and the business.

Also, as the job is relatively simple, could I at all do this by myself. ?

The company account simply has one payment in per month and one payment out (the money which I'm allowed to take after tax)?

 

[Jeremiah@RHJ Accountants]

You can do all this by yourself if you have the knowledge of the Corporation tax rates and know how to take money from your company which i would advise is a low salary and dividends.

If you take a salary you will need to be set up for PAYE and report to HMRC as RTI is a requirement monthly and you must keep the appropriate dividend paperwork.

You will mostly likely have to prepare a self assessment each tax year based on your personal income.

This is just a brief overview of what you would need to do if done by yourself

I would say speak to some accountants and see what they can offer you in terms of service and that you feel you can get on with them.

You will also be able to explain in full you company and personal circumstances. For which the accountant you choose should be able offer the tax planning advice you need.

 

[David Griffiths]

If you take a salary you will need to be set up for PAYE and report to HMRC as RTI is a requirement monthly and you must keep the appropriate dividend paperwork..

You will not need to be set up for PAYE if the monthly salary is less than the lower earnings level for NIC, which currently is £481.00 per month

You will mostly likely have to prepare a self assessment each tax year based on your personal income.

It is almost certain that you will not have to prepare a self assessment each tax year, unless your total income exceeds the higher rate tax threshold of £41,865, or you have other untaxed income that you haven't mentioned. You do NOT have to file a self assessment return solely because you are a company director

 

[Energise Accounting]

Your Accounting needs are fairly simple so this should be reflected in any fees charged.
.
As suggested to make you tax efficent it should be a combination of low salary and remaining profits paid as a dividend.

i would suggest you use an Accountant to help you with this as the benefits will outway any fees
if you would like any help plesae get in contact

 

[Jeremiah@RHJ Accountants]

David would you advise that he pay him self below the Lower earnings limit as would this not affect his state pension contributions?

Also would not a higher salary mean less Corporation tax?

I said most likely self assessment and at no point did i say because he is a director, if HMRC ask him to complete this then he must do so or explain that he does not meet the requirement for SA.

As i said he needs to speak to accountants and disclose his full personal and business circumstances to get the tax planning advice he needs which i see you failed to mention in my post.

 

[MyAccountantOnline]

I'm a web designer and have one single client that pays a fee every month. As I'm a student, this is my only client and it takes up all of my time.

My company is limited and I want to take every penny that I can out of the company. (My company is essentially me and my laptop)

I'm looking for an accountant to figure out how much tax is owed by me and the business.

Also, as the job is relatively simple, could I at all do this by myself. ?

The company account simply has one payment in per month and one payment out (the money which I'm allowed to take after tax)?

Hello

You certainly dont have to use an accountant to look after your company accounts and tax, but an experienced and qualified accountant will ensure you pay no more in tax than you have to, and that you dont pay unnecessary and avoidable penalties by ensuring everything needed is dealt with.

My own view, as an accountant, is that someone operating as a soletrader can with quite a bit of reading and research deal with an annual Self Assessment tax return themselves, but for a limited company it's an awful lot to deal with if you don't have accounting and tax training and experience as a qualified accountant. I've seen a lot of people get in a mess trying to DIY company accounts and tax.

 

[Voicebooth]

The setup you're describing sounds like you're contracting - I'd do a bit of reading up on IR35, because it sounds to me like you fall under it, and should HMRC ever decide to investigate you, you may find a bit of a shortfall on your owed taxes that you may not have planned for.

 

[MyAccountantOnline]

The setup you're describing sounds like you're contracting - I'd do a bit of reading up on IR35, because it sounds to me like you fall under it, and should HMRC ever decide to investigate you, you may find a bit of a shortfall on your owed taxes that you may not have planned for.

One of many things which a good accountant will deal with

 

[Jeremiah@RHJ Accountants]

One of many things which a good accountant will deal with

I agree

 

[Jeremiah@RHJ Accountants]

The setup you're describing sounds like you're contracting - I'd do a bit of reading up on IR35, because it sounds to me like you fall under it, and should HMRC ever decide to investigate you, you may find a bit of a shortfall on your owed taxes that you may not have planned for.

+1 for this too

 

[rajkanwarbatra]

Hi Gary,
Fair Disclosure: I trained as an accountant. Currently I have my own business.
My advice would be two fold:
Consult a good accountant to be aware of the risks involved and guard against it. Many good accountants provide free consultation. I would in this situation talk to at least three. I usually find that after consulting three experts I can sometime provide information to experts which they don't know! You will get a balanced view.
From the accountants you speak to get one you like to do your annual return ( provided you don't have other reporting requirements) As you are not from business field you would probably struggle to understand the requirements yourself. I certainly did and like I say I am a CA myself (albeit a corporate one).

Kind Regards

Raj

 

[MyAccountantOnline]

.....From the accountants you speak to get one you like to do your annual return ( provided you don't have other reporting requirements) As you are not from business field you would probably struggle to understand the requirements yourself. I certainly did and like I say I am a CA myself (albeit a corporate one).

Kind Regards

Raj

Hi Raj I think maybe you mean company accounts and tax return rather than an Annual Return?

An Annual Return is a relatively simple form required once a year by Companies House and is one form which a non-accountant can generally do themselves.

 

[rajkanwarbatra]

Hi Nicola, You are right. I mean annual tax return. KR
Raj

 

[MyAccountantOnline]

Hi Nicola, You are right. I mean annual tax return. KR
Raj

Lots of people confuse the Annual Return with the Corporation tax return, and the accounts too

 

[David Griffiths]

David would you advise that he pay him self below the Lower earnings limit as would this not affect his state pension contributions?

Also would not a higher salary mean less Corporation tax?

I was't advising him to pay below the LEL, but it's not impossible that the monthly amount is going to be below it in any event, in which case a PAYE scheme is not necessary.

There isn't enough information to give any meaningful advice.

 

[Jeremiah@RHJ Accountants]

I was't advising him to pay below the LEL, but it's not impossible that the monthly amount is going to be below it in any event, in which case a PAYE scheme is not necessary.

There isn't enough information to give any meaningful advice.

Agreed hence why the OP needs to contact an accountant to disclose his full circumstances to receive the correct advice. He will not receive this on a public forum

 

[steved45]

not so sure, I am finding so much professional and sound advice here. i did my self-assessment myself for a while till i got fed up of it and took on an online service but now use a local accountant. what are your earnings? check the threshold on the HMRC site. think they have a calculator, if not, must be one online somewhere.