Started... a few months ago

[montygue]

Good evening, looking for some advice.

My business partner and I established our own LTD business where we are both Directors.

We both have full-time jobs in addition to the business and we are not taking any salary (we have no intention for a few years and want to re-invest any profit).

In terms of profits etc, we will be below 5K this year. We also, don't have an accountant.

I'm looking for suggestions, and experience in what we have to do in terms of declaring. Do we declare anything to HMRC if we are not taking any salary etc and what do we submit at the end of the financial year.

Cheers, appreciate that these may be some silly questions!

 

[DWS]

I know you say you don’t have an Accountant but is it your intention to get one?
Yes you need to declare accounts to both HMRC as well as Companies House and also pay tax on your profits.

 

[MOIC]

I'm looking for suggestions

Get an accountant, would be my suggestion, in order to do things correctly.

 

[Socio South West]

If your business grows, and you both retain your (presumably) PAYE positions your personal tax affairs could become quite complicated.
Within the company structures there are ways to help you ameliorate the business side of this, and it is clear that you should be now working with an accountant to get this working for you to best advantage, and also to keep the statutory filings etc up to date which is something a number of new company owners ignore.

As I suggest to all others doing the same as yourselves - don't lose sight of your work/life balance.

 

[Daybooks]

My recommendation would be to comply with your duties as directors which started on your appointment as a director and for the legal requirements for a company on its incorporation.

A good starting point is:

https://www.gov.uk/running-a-limited-company

 

[montygue]

Thanks all for your advice and time, appreciate it.

 

[kantanLiving]

If you are looking to trade then you need to declare otherwise you should declare your status to company house as dormant if your not trading but just wanted or needed a business entity. If you do very little in sales or its super basic and dont want to pay an accountant, i would suggest looking into FREEAGENT accounting software, it allows you to do declarations online to HMRC via software and it can link to your bank account etc.

The package itself is paided, but recently i was looking to stop using my accountant and do self declaration, i saw Natwest and some other banks, give you the FREEAGENT package for free if you open or switch your business banking to them.

If you dont want to use software, you can also do it yourself and declare to HMRC directly although lot more admin involved.

Note: i would agree that for the 1st year, you might want to hire a pay per service accountant so you take advantage of their consultancy and ask all the questions you need relating to your business needs.

 

[Mark T Jones]

1. Get an accountant.
2. Be sure to file all required submissions on time.
- 3 Get a shareholders agreement.