Four top tips when forming limited companies
For many the idea of preparing a small company is daunting.
Our research has shown that the very best item of information we came across again and again is"find a good accountant and also use their services".
Yes an accountant charges money but in the long run it will save you money. We recommend engaging with an accountant at the outset, they will direct through the creation process and based upon the support they provide even fill in all the necessary forms connected with forming a limited.
Corporation Tax is due 9 months and 1 day after the company's year end. If you're VAT registered then this is due quarterly.
You may be thinking'I've ages until I want to pay it and that I don't need to be concerned about it '. Don't! If you aren't prepared you might find yourself in a circumstance where you don't have the money to pay for it. HMRC does not look at this favourably.
If you form a limited company it's ideal to view it as a separate entity and any cash held inside the company bank account is owned by the company rather than you.
Even as the company director the money is not yours to invest freely.
It's important to keep in mind that you are legally responsible for the company's finances. Your accountant is there to provide advice and guidance but in the end of the day it is up to you to make sure everything is carried out correctly. Our advice is if you are not certain about something speak to your accountant . Need to learn more? starting a Limited company
As a limited company you're legally obliged to keep proper records for at least 3 decades, or 6 years if you're VAT enrolled.
Make your life easier and take the opportunity to organise everything. This means using a filing system that works for one (not piling up everything at the corner of this room). Keep all business related paperwork together in a folder and all of costs together in month order together with relevant receipts.
You will save yourself time and prevent stress by following these basic tips. You can then focus your time and energy on running and growing a successful company.
1. Find a Fantastic accountant
Our research has shown that the very best item of information we came across again and again is"find a good accountant and also use their services".
Yes an accountant charges money but in the long run it will save you money. We recommend engaging with an accountant at the outset, they will direct through the creation process and based upon the support they provide even fill in all the necessary forms connected with forming a limited.
2. Set aside a sum each month for Corporation Tax and VAT
Corporation Tax is due 9 months and 1 day after the company's year end. If you're VAT registered then this is due quarterly.
You may be thinking'I've ages until I want to pay it and that I don't need to be concerned about it '. Don't! If you aren't prepared you might find yourself in a circumstance where you don't have the money to pay for it. HMRC does not look at this favourably.
3. You and the business Aren't the Exact Same
If you form a limited company it's ideal to view it as a separate entity and any cash held inside the company bank account is owned by the company rather than you.
Even as the company director the money is not yours to invest freely.
It's important to keep in mind that you are legally responsible for the company's finances. Your accountant is there to provide advice and guidance but in the end of the day it is up to you to make sure everything is carried out correctly. Our advice is if you are not certain about something speak to your accountant . Need to learn more? starting a Limited company
4. Be organised
As a limited company you're legally obliged to keep proper records for at least 3 decades, or 6 years if you're VAT enrolled.
Make your life easier and take the opportunity to organise everything. This means using a filing system that works for one (not piling up everything at the corner of this room). Keep all business related paperwork together in a folder and all of costs together in month order together with relevant receipts.
In conclusion
You will save yourself time and prevent stress by following these basic tips. You can then focus your time and energy on running and growing a successful company.
