Newly Incorporated Ltd Company

Discussion in 'Accounts & Finance' started by Dm500s, Sep 9, 2020.

  1. Dm500s

    Dm500s UKBF Newcomer Free Member

    1 0
    Hi,

    I am just looking for some advice regarding my newly incorporated ltd company. First off all there are no employees, it's me and my brother both as directors. We have not yet decided on taking a salary as the business is quite slow to take off. If we don't take a salary do we technically have zero employees? We do intend on taking dividends out of the profits at the end of the year

    I have a question with regards to companies house and HMRC.
    When will I need to file the first accounts with companies house? We incorporated in May 2020 but only began trading in August 2020. Is there any other filings that need to be done within the first year. We are still looking for an accountant to steer us in the right path. If anyone can recommend a reasonably priced accountant in Belfast that would also be great.

    My next question is regarding HMRC. We do not plan on getting anywhere near the turnover threshold for VAT of £85k for a rolling 12 months. Does this mean we do not need to file any VAT returns or worry about HMRC at all until it's time for corporation tax? Do we have to file anything with HMRC on a regular basis?

    With regards accounting software, we will be very limited in our purchases and sales so something basic would probably work. Would anyone have any recommendations for free to use software?

    What filings need to be done with companies house and HMRC on a monthly, quarterly or annual basis? Sorry for all the questions, I am just trying to get to grips with the new ltd company
     
    Posted: Sep 9, 2020 By: Dm500s Member since: Sep 9, 2020
    #1
  2. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,071 895
    https://www.quickfile.co.uk/

    Quickfile for free bookkeeping software.

    FreeAgent is also free to NatWest business account holders.

    Also look at engaging a remote working Accountant- fees are likely to be lower..

    There are a few of us on here who regularly contribute to the site.
     
    Posted: Sep 10, 2020 By: UK Contractor Accountant Member since: Sep 18, 2013
    #2
  3. Scalloway

    Scalloway UKBF Legend Free Member

    16,403 3,470
    Companies House will have allocated you an Accounting Reference Date (ARD), probably the 31 May but you can check on the Companies House website. You have 9 months after that date to file your accounts and 12 months after the ARD to file the Corporation Tax return. The only other regular filing needed is the Confirmation Statement that is filed each year on the anniversary of incorporation.
     
    Posted: Sep 10, 2020 By: Scalloway Member since: Jun 6, 2010
    #3
  4. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,217 2,477
    If you go to the Companies House website and search on your company name it will show the date there.

    Here's a link https://www.gov.uk/get-information-about-a-company

    I don't think we have any accountants here in Belfast and I personally don't know any but (and it is a bias suggestion) an online accountant may be an option for you.

    Yes you don't have to register for VAT and submit VAT returns but it may be beneficial to you depending on what your company does etc.

    You say something simple will probably work. What sort of business will you be running and are their are features you'd find really helpful to have?

    For a small company which isn't VAT registered and isn't running a payroll most things will be once a year ie the year end accounts, Corporation tax return and annual Confirmation statement but a good accountant will make sure you deal with all that's required when it has to be done.
     
    Posted: Sep 10, 2020 By: MyAccountantOnline Member since: Sep 24, 2008
    #4
  5. Cloud Accounting

    Cloud Accounting UKBF Contributor Free Member

    38 5
    Just be careful on your first point. If you have a contract of service than you are an employee & fall under minimum wage & auto enrolment legislation etc.. If you don't have one that's fine.
     
    Posted: Sep 10, 2020 By: Cloud Accounting Member since: Apr 22, 2020
    #5
  6. Rawlinson Pryde

    Rawlinson Pryde UKBF Contributor Free Member

    80 23
    First set of accounts are due 21 months after the incorporation date, so it may have a “funny” deadline date.

    You should look to get an accountant sooner rather than later, who will be able to steer you better by being proactive. I wouldn’t purely pick based on price, as paying more can provide a better service which saves you overall. Most accountants (incl. offices) offer video meetings etc. so you can speak with the accountant to see if you feel you can work together.

    Just be careful if you do go down the remote working Accountant to find out who is doing the work, as some firms are starting to outsource overseas, which you may not think is best for you.
     
    Posted: Sep 13, 2020 By: Rawlinson Pryde Member since: May 9, 2020
    #6
  7. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,217 2,477
    I wouldn't say using outsourced staff based overseas is something firms are starting to do. It's been an option for many years now, and most definitely not limited to remote accountants.

    My personal view is when appointing any accountant find out who will be doing the work. In a smaller firm you will generally have one point of contact, in a larger firm your accounts and tax are likely to be passed through different departments and different staff.
     
    Posted: Sep 14, 2020 By: MyAccountantOnline Member since: Sep 24, 2008
    #7
  8. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,868 2,471
    Unfortunately families often crop up on this forum in dispute about who is not working as much as someone else, or there has been a breakup of the family etc

    You need to be clear over the roles and hours you expect both to work to and seriously need a shareholders agreement now not next month or next year or when we are larger do it no and have all the major thing covering when something goes wrong are covered

    No doubt you will ignore this advice like a massive majority of new businesses and maybe regret it further down the line
     
    Posted: Sep 14, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #8