YBC Academy : Accounts and Your Limited Company
Do you need a New Accountant?
Congratulations on setting up a Limited Company! What’s next?
- Do you know the most tax efficient way to take money out of your company?
- You do not pay tax on any dividend income that falls within your Personal Allowance
- You also get a Dividend Allowance each year
- Have you filed your Annual Accounts on time?
- Late filing penalties fees apply from the date the accounts are due, ranging from £150 to £1,500, if more than six months late
Director’s Loan Accounts
- Do you owe your company money?
- An overdrawn director’s loan account is effectively an interest-free loan
- You will have to pay tax on director’s loans
- Corporation tax of 32.5% is payable nine months and one day from the end of the relevant accounting period
- Your company can reclaim the Corporation Tax it pays on a director’s loan, that’s been repaid.
Register as an Employer
- Have you registered as an employer?
- You must register as an employer even if you’re only employing yourself as the only director of a limited company
- You must register before the first payday
- Don’t forget to claim Employment Allowance
- Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to £4,000
- An employer running payroll has to complete certain tasks during each tax month
- Every time you pay an employee, you must report their pay and deductions to HMRC, on or before your employees’ pay date
- HMRC will send you a late filing notice if you have paid any employees and did not report this to HMRC on time. They may also charge you a penalty.
Register for VAT
- You must register for VAT with HMRC if your VAT taxable turnover is more than £85,000
- Could you benefit from the flat rate scheme?
- You cannot charge or show VAT on your invoices until you get your VAT number. However, you’ll still have to pay the VAT to HMRC for this period
- New Brexit rules apply on VAT charged on exports and imports of goods and services with the EU
- Is your business ready?
Cloud Accounting Software
- Get yourself a HMRC approved and secure, IT solution, with no maintenance costs and real time financial data at your finger-tips
- Some are available for free
- Some can submit your Tax returns directly to HMRC and Annual Accounts directly to Companies House
Monthly Management Reports
- It’s not enough to have money in your bank account
- How is your business doing?
- How are you performing compared to budget?
- What is your profit forecast for next year?
- How long can your business survive?
- Management reports can help you see into the future
- Your business and your numbers work hand in hand
Data Clean up
- Have you tried to go it alone?
- Have you been doing your own accounts?
- Has it got out of control?
- There is no problem without a solution
- Make sense of your data
- Book in for a data clean up exercise
- Get your numbers talking
Do you need a new Accountant?
- Your accountant should be someone you trust
- Your accountant should be someone you rely on for support in the everyday running of your business
- Your accountant should save you money
- Your accountant should offer more than compliance and filing of tax returns
- Your accountant should add value to your business
- Your accountant should support you all year round
- If you are not happy with your accountant, you should move.