Small Ltd Checklist

[Siilver]

Hi all,

I've been working self employed and running websites that make money from advertising for a few years now. One of my websites has done well and I recently decided to turn it into a Ltd company using the Company House website.

It doesn't make enough to pay VAT and only has one expense per month and one income payment per month both of which go in/out of my business bank account.

I aim to pay myself via monthly dividends to avoid having to setup a PAYE salary and avoid unnecessary income tax.

As it's only a one person company I'm just wondering is there anything I've missed or any additional paperwork apart from accounts/dividends/tax returns that I need to complete?

Are there any good starting Ltd check-list type guides of what you should ensure you've completed?

Also do you think I need the help of an accountant? I'm trying to save money without and have done my own self assessment taxes for the last few years so not sure if the cost of one would benefit me enough?

I'm 23 and this is my first Ltd company so I'm trying to learn as I go and not make any mistakes, all help is much appreciated!

 

[Esk247]

I'd get yourself over to the Cheap Accounting website and see about their accountancy fees, they offer a lot of help via email when you're a customer too.

Be careful with paying yourself via dividend. You can only do this when you have enough net profit in the business. You cannot pay dividends if the business is in the overdraft for instance.

 

[David Griffiths]

You cannot pay dividends if the business is in the overdraft for instance.

Not true at all. If the company has distributable profits, it matters not one whit if there is an overdraft.

 

[Esk247]

Not true at all. If the company has distributable profits, it matters not one whit if there is an overdraft.

Sorry. That is what i meant. Should have stopped at:

You can only do this when you have enough net profit in the business

 

[Figurate]

Depending on your personal circumstances, you might wish to pay yourself a small salary (to keep your NI record and use up personal allowances) which is a deductible expense against corporation tax (unlike dividends which must be paid after tax).

Most accountants will give you a free initial consultation (either in person or over the phone) to help you decide whether to use one or not.