LTD for 3 months Tax return
Discussion
After redundancy in Feb I setup a LTD company as I had a contract to go to. But after 3 months I walked away from the contract and took some time out. Have since returned to PAYE.
So I need to do Tax returns, for something like 12 invoices, in the region of £14k.. I did transfer some funds to my personal account to keep afloat, but less than £4k.
Is this something I can do myself, is there a Template I can apply invoices and costings to?
So I need to do Tax returns, for something like 12 invoices, in the region of £14k.. I did transfer some funds to my personal account to keep afloat, but less than £4k.
Is this something I can do myself, is there a Template I can apply invoices and costings to?
You also need to decide if the money the company transferred to you is wages (you are an employee and therefore should have wage slip, any tax deduction/NI) or dividend (unlikely if there is no profit) or a loan which of course I think needs to repaid by the end of the taxyear to avoid any tax liability.
I am not an accountant but I would suggest you speak to one. You may need to do:
- Company Annual return with Companies House. This could be overdue if more than 12 months since company formation.
- Company Annual accounts. Normally due 9(?) months after company year end, so you're probably ok for a while.
- Corporation Tax return. Due 12 months after company year end so again, probably OK but bizarrely any tax owing is payable earlier than the filing deadline.
- Personal Tax (self assessment) return. If you were a company director you will probably need to file a SA return for '22-'23 before end of Jan '24, even if you had no income from the company
- As mentioned by others you need to figure out how you're treating the money you withdrew personally (salary, dividend, loan?) before doing any of this.
- You may then need to do an employer's PAYE filing as well. If you took salary, you should have filed monthly returns so their may be penalties for not doing this.
Good hit list thank you, I will work through that..
I have done a confirmation statement to Companies house as that was due.
So it looks like I need to work out Annual accounts and a Tax return for the LTD..?
The money I withdrew I can put back into the account, keep things simple, the PAYE earned since will go well over any personal allowance and it will save a ton of additional work..
deggles said:
I am not an accountant but I would suggest you speak to one. You may need to do:
Whenever I see new clients who've done their own limited company accounts for a few years, I'm nearly always shocked by what a mess they've made, and they're nearly always shocked by how much tax they've overpaid. There's the odd one who does a decent job but it takes absolutely masses of research to be able to put together a compliant set of accounts and minimise your corporation and personal tax.- Company Annual return with Companies House. This could be overdue if more than 12 months since company formation.
- Company Annual accounts. Normally due 9(?) months after company year end, so you're probably ok for a while.
- Corporation Tax return. Due 12 months after company year end so again, probably OK but bizarrely any tax owing is payable earlier than the filing deadline.
- Personal Tax (self assessment) return. If you were a company director you will probably need to file a SA return for '22-'23 before end of Jan '24, even if you had no income from the company
- As mentioned by others you need to figure out how you're treating the money you withdrew personally (salary, dividend, loan?) before doing any of this.
- You may then need to do an employer's PAYE filing as well. If you took salary, you should have filed monthly returns so their may be penalties for not doing this.
OP - have you used up your tax-free dividend allowance?
Seventy-Eight said:
Whenever I see new clients who've done their own limited company accounts for a few years, I'm nearly always shocked by what a mess they've made, and they're nearly always shocked by how much tax they've overpaid. There's the odd one who does a decent job but it takes absolutely masses of research to be able to put together a compliant set of accounts and minimise your corporation and personal tax.
FWIW I always used an accountant for CT600 and annual accounts, for over ten years, but by the end I was basically paying them to export my figures from FreeAgent (with a few minor adjustments for accruals). I was thinking if I had a Ltd again I'd just do everything myself, but maybe I just need a better accountant! 
No didn't realise I have a dividend allowance.
only reason considering submitting myself is I was quoted over £900 for an accountant to assist, was hoping to save some £££ as that seems excessive for 12 weeks work/invoices and expenses. I created a spreadsheet so all the info is readily available, just need to know how to present.
only reason considering submitting myself is I was quoted over £900 for an accountant to assist, was hoping to save some £££ as that seems excessive for 12 weeks work/invoices and expenses. I created a spreadsheet so all the info is readily available, just need to know how to present.
Even if you only billed through the company for a few months, the requirement is to file an ANNUAL set of accounts. In fact, as this is the first set of accounts for the company it is likely that this first set will cover a period slightly more than 12 months.
What is the date of revision the company as shown at Companies House?
What is the date of revision the company as shown at Companies House?
J50N WA said:
No didn't realise I have a dividend allowance.
only reason considering submitting myself is I was quoted over £900 for an accountant to assist, was hoping to save some £££ as that seems excessive for 12 weeks work/invoices and expenses. I created a spreadsheet so all the info is readily available, just need to know how to present.
£900 for a 'one-off' assignment of this type is a good price.only reason considering submitting myself is I was quoted over £900 for an accountant to assist, was hoping to save some £££ as that seems excessive for 12 weeks work/invoices and expenses. I created a spreadsheet so all the info is readily available, just need to know how to present.
Work required by accountant:
- Initial 'meeting' with client
- Consider requirements
- Collect money laundering ID
- Prepare engagement letter and get it signed
- Collect relevant documents from client- Companies House/HMRC (possible multiple requests)
- Set up client on (potentially) multiple systems- accounts/business tax/personal tax/money laundering/practice management
- Get HMRC authority for corporation tax/personal tax
- Prepare accounts (12 weeks or not, they will take a lot of setting up)
- Prepare corporation tax return
- Prepare personal tax return(s)
- Provide tax planning
- Engage with HMRC
- Disengage client
- Clean systems
- Monitor and retain records
For the work involved, I'd imagine many trades would be charging more. A good accountant is being devalued because people think they can do it themselves. Sometimes they can OP, but I can guarantee you, in your circumstances, you can't.
Are you a higher rate taxpayer?
If I understand correctly, you're looking to close down the Ltd company and file final accounts.
Assuming your accounts are fairly simple, I used to use a company called cheapaccounting. I would just email them a copy of my company bank statments for the year, along with invoices and a breakdown of income/outgoings. They would produce and submit my annual accounts and tax return for about £200, and another £75 for my personal return.
All done by phone and email, and I found them to very good for basic accounts. In fact they were much better than the previous accountant I was paying a lot more for, via a monthly fee.
Assuming your accounts are fairly simple, I used to use a company called cheapaccounting. I would just email them a copy of my company bank statments for the year, along with invoices and a breakdown of income/outgoings. They would produce and submit my annual accounts and tax return for about £200, and another £75 for my personal return.
All done by phone and email, and I found them to very good for basic accounts. In fact they were much better than the previous accountant I was paying a lot more for, via a monthly fee.
For that fee, you will probably end up filing some rubbishy set of non-compliant and technically illegal figures at both Companies House and HMRC. Luckilly for you, both Companies House and HMRC are no longer capable of doing their jobs properly so there is a chance you might get away with it.
Eric Mc said:
For that fee, you will probably end up filing some rubbishy set of non-compliant and technically illegal figures at both Companies House and HMRC. Luckilly for you, both Companies House and HMRC are no longer capable of doing their jobs properly so there is a chance you might get away with it.
The fee may be a little higher now, but I found everything to be in order. With only a limited number of invoices and not much in the way of outgoings, it's fairly hard to go wrong, and is a pretty simple exercise.By comparison, my previous accountant, who I paid considerably more to, had made a complete hash of things, and I could never reconcile their figures with mine, With these I was able to cross check and verify everything to the last penny.
That's just my experience though.
Edited by QJumper on Saturday 23 December 14:54
J50N WA said:
Yeah that's the idea, wrap it all up, make sure everything necessary is filed and pay as little as possible.. will see if they can help, £200 seems decent for the piece of mind..
But they're no longer close to £200 as I mentioned above. You'll be looking at north of £600 easily.As I asked earlier, are you a higher rate taxpayer? This will have a significant bearing on the route you take.
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