YBC Academy : Accounts and Your Limited Company

Do you need a New Accountant?

Limited Companies

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

Running Payroll

  • 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.
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