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.
Q – What taxes or filings are due for a limited company?
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.
Q – Who do I need to register with?
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.
Q – How can I pay myself?
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.
Q – Can I claim expenses working from home?
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.
Q – What other expenses can I claim?
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.
Q – Can I obtain business finance?
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.
Q – How much will accountancy fees cost?
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 Accountancy are Accountant’s based in Derby who specialise in working with Small Businesses across the Country – Get in touch on 01332 981920 or email@example.com to discuss your needs.
We can be found at Suite 5 Keynes House, Alfreton Road, Derby, DE21 4AS.