We receive a number of questions here at Ascentant, both from clients and online. Here Kevin Drew, Managing Director answers some of the common queries that new businesses ask.
A – A limited company must complete an annual return (confirmation statement) on the anniversary of incorporation. Thereon a limited company must file annual accounts with companies house and a corporation tax return to HMRC. Directors must complete an annual self assessment tax return. VAT and payroll filings may also be applicable if registered for these schemes.
A – When setting up a Limited Company, you will need to register with Companies House for company registration and HMRC for tax filings. Depending on the type of business, it may also be necessary to register with the information commissioner (ICO) if holding data.
A – It is recommended to set up a payroll scheme to pay directors via monthly payroll, paying tax and NI monthly. Once profits have accumulated into retained earnings, directors can also take dividends from the business, utilising their annual dividend allowance.
A – There are set allowances that can be claimed for working from home without receipts. You may also be able to claim proportionate expenses for heat and light expenses.
A – You can claim mileage or petrol allowances, the cost of phone calls and other incurred expenditure, relating to the business. Business expenses are tax deductible if incurred for business purposes.
A – As a Limited Company, it may take some time to build up a credit rating before the business can obtain finance. You should be able to open a bank account and apply for an overdraft. Any loans or other finance may require a personal guarantee by a director until the business is credit worthy.
A – Accountancy fees vary widely for Limited Company accounts, but usually range from £750 – £1,500 + VAT for a basic set of financial statements. More complex accounts will cost more.
Ascentant are Bookkeepers, Accountants and Business consultants. We are based in Derby with a further office in London.