Registered Ltd company 2yo and now ready to start

Discussion in 'Accounts & Finance' started by maxfox44, Oct 14, 2020.

  1. maxfox44

    maxfox44 UKBF Newcomer Free Member

    11 6
    Hi Guys

    Hope this is in the correct forum (admin, please move if not).

    Background
    Almost 2 years to the day, I registered a Ltd company with a formation agent with the intention of starting quite quickly. However, a number of things have happened since and I never got very far with the company. When I was asked for accounts last year, I made the company dormant and that got the corporation tax people off my back at the same time.

    Now
    I'm ready to make a go of this company now, but I'm pretty much starting from scratch. I could do with your advice on how I go about sorting out CH, HMRC, getting a bank, pretty much all the financial and admin stuff.

    I've just completed the 2nd confirmation statement
    I pay the formation agent for a business address and officers address
    The company is classed as dormant
    I don't yet have a business bank.
    I will need to be VAT registered, B2B
    I am considering using one of those pay monthly accountants, but open to advice.

    Advice needed.
    I'd like to "reset" the accounts reference point and any other timelines, such as corporation tax (although I doubt I'd pay any" Really to give myself the longest possible time.
    I'm slightly confused to what order I need to do everything?

    I hope you guys can steer me in the right direction.

    Max
     
    Posted: Oct 14, 2020 By: maxfox44 Member since: May 19, 2014
    #1
  2. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,257 2,486
    At this stage I'd get a bank account opened for your company.

    Make sure you've got all relevant insurance cover too.

    You'll also need to notify HMRC that the company is trading. HMRC explain how this is done here
    https://www.gov.uk/guidance/corpora...rc-your-company-or-organisation-is-now-active

    You can change the company accounting date, it's explained here https://www.gov.uk/change-your-companys-year-end

    If you are happy you dont need any professional advice before registering for VAT you can do this yourself but make sure you use the best VAT scheme for you etc. https://www.gov.uk/vat-registration

    Sorting out software for bookkeeping and VAT is something else to consider at this stage. If you want some suggestions if you post up with some details of what you need and the type of business you have you'll get lots of suggestions. I personally like Accounts Portal and FreeAgent, both deal with VAT, but they aren't the best options for everyone.

    Getting a good accountant now will be money well spent.
     
    Posted: Oct 14, 2020 By: MyAccountantOnline Member since: Sep 24, 2008
    #2
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,098 899
    Posted: Oct 14, 2020 By: UK Contractor Accountant Member since: Sep 18, 2013
    #3
  4. Spur Support Services

    Spur Support Services UKBF Contributor Free Member

    68 13
    Hi
    Lots of good advice already.
    Tide bank is worth looking at, with low charges and basic accounting functionality built in.
    It's easy to get all the HMRC structure sorted out, especially if you find an accountant to support you.
    If you need to set up a payroll, you can either use the HMRC free software, or look to one of the Payroll integrations within software such as Xero.

    I would add that you shouldn't rush into registering for VAT. Not all B2B customers are VAT registered, so consider your market initially. There will be additional admin costs and risk of HMRC review, which may mean that the benefit of recovering VAT on your VATable expenses is outweighed by the costs and market price effect.

    Good luck with your new adventure. :)
     
    Posted: Oct 15, 2020 By: Spur Support Services Member since: Aug 21, 2020
    #4
  5. lesvatadvice

    lesvatadvice UKBF Regular Free Member

    788 122
    You can choose an optimum date for registration for VAT. You can backdate this if necessary to ensure recovery of VAT already paid. Many business customers will be VAT registered. But, as Spur commented above, not all, so try to take that into account.
    Make sure your terms & conditions clearly refer to VAT being chargeable.
    You may find one of the VAT schemes helpful: Cash Accounting or Annual Accounting.

    I would suggest having an hour's meeting with an Accountant, with a simple and clear Agenda, with the benefit of the replies here.
    And we wish you well!
     
    Posted: Oct 16, 2020 By: lesvatadvice Member since: Jul 7, 2011
    #5