Ltd start-up next step

[PDRD]

Hi all,

I have registered a new Ltd company this morning using GoLimited, and I have now had me incorporation documents through and my company No.

So whats my next step? I am not going to register for VAT yet as this is a side line to my main sole trader work and I don't see it reaching the threshold in the first 12 months.

I notice that Go Limited have not informed Co.House of a Business Secretary, do I need to do this? if so, how?

Is there anything else I need to do? PAYE, even though I am sole director and employee.

Sorry for all of the Q's, just don't want to miss something out.

Phil

 

[Joyous]

Make an appointment with your bank to get a bank account opened for the company. You need to keep its banking separate from your personal banking and that of your sole trade.

Then make an appointment with an accountant who provides free initial consultations and discuss your next steps.

Regards

Joy

 

[webgeek]

Phil, you might want to a 2nd look into VAT registration.

If your business expenses will largely be labour costs, without a substantial amount of materials being bought and resold, then flat rate VAT can actually put several additional percentage points of profit into your pocket....

 

[PDRD]

ooo thanks webgeek, labour costs will be the majority of the costs, I will take a look into that.

Bank is sorted, I called by current business bank and added a separate one for the new Co.

 

[JamesCartwright]

Hi PDRD,

You are able to appoint a secretary yourself with Companies House, alternatively you can use a company secretarial service who will be able to do this on your behalf.

PAYE (Pay As You Earn), or in other words, registration as an employer with HMRC is what you are required to have if you are going to hire employees or pay any directors or employees a salary. PAYE is fundamentally a system that the government uses to collect income tax and national insurance contributions. Under PAYE, national insurance contributions and tax are deducted before your employer gives you your wages (or pension). Employers are required by law to subtract national insurance and income tax from their employee’s wages.

Many new businesses are unsure as to when they should register for VAT during the Ltd company formation process. Essentially, a company must register with HMRC for VAT if it has supplied taxable goods and services (sales) amounting to more than the registration threshold of £77,000 in the last 12 months. You must also register for VAT if your company expects to supply taxable goods and services amounting to more than £77,000 in the next 30 days. As soon as either of these circumstances is relevant to your company, you only have 30 days to apply for VAT registration.You must remember to register for VAT on time in order to avoid incurring the cost of a penalty charge.

However there are benefits associated with registering for VAT voluntarily, even if you are below the VAT registration threshold:
·Ability to reclaim VAT on costs where you are charged VAT by your suppliers.
·Ability for customers to reclaim VAT on your charges where applicable.
·You may be entitled to a refund, depending on the VAT rates of products you buy and sell.
·When starting up a business, you may be able to claim a substantial amount of VAT on the equipment you buy to get started.

I hope this helps. If you have any more questions, please feel free to contact me.

Best of luck with your business venture!

 

[altwebdesign]

Get an accountant and get sorted with PAYE and any other contributions you need to make.

Set a bank account up as well, in the company name - you will need your company registration number to do this.

Other than that, get trading and making some money!