* So, you’ve set up a new limited company… what next? When you incorporate a new company, Companies House pass that information onto HMRC. So, within a few weeks, HMRC will automatically send you a CT41G form. This asks for some standard information on your new company, such as it’s year-end date, it’s registered number, [read more]
Self-Assessment Tax Returns for Company Directors*If you work from home, consider charging business rent to your limited company (you’ll need to set up a rental licence agreement between yourself and your company). If you set the rent figure to be the same as the actual costs, then there will be no personal tax to pay, (although both the rental income [read more] |
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 Year End Accounts Checklist*Traditionally, accountants do a number of tasks in completing a set of accounts & tax returns. Here are a few of them. (Note that some of them may not apply to all businesses. For example, sole traders would not have to submit accounts to Companies House. If you don’t hold stock, then stock-takes and stock [read more] |
 Recourse Factoring in the Statutory Accounts*Recourse Factoring calls for “Separate Presentation” in the balance sheet of a company’s statutory accounts. The liability to the Factor is shown as a short-term creditor, because in effect it is a loan from the Factor. The Sales ledger debtors are shown under “current assets” in the usual way. The Factoring fees and discount fees [read more] |
 Umbrella Company Confusion*This week’s blog posts were inspired by a recent question on AccountingWEB. It seems that even accountants can be confused about what Umbrella Companies actually do. For that reason, it’s important to use an accountant who actually knows about the practicalities of contracting and IR35. Most accountants will be able to deal with bog-standard limited company [read more] |
 Choosing an Umbrella Company*Some things to think about when choosing an Umbrella company: The speed with which they will process your PAYE and expenses and their timescales/deadlines. How fast will you be paid once the Umbrella company receives payment from the recuitment agency. This will also depend on how fast they send an invoice to the agency. How easy [read more] |
 Why Use an Umbrella Company*Advantages for the Contractor There are tax advantages to trading through a limited company, rather than being PAYE employees (mainly in the area of the tax-deductible expenses that can be claimed by the contractor). However, running a limited company is onerous in terms of additional regulation, responsibility and statutory accounts, returns and corporation tax. Using an Umbrella [read more] |
