Setting Up A Limited Company – Things to Consider!
Your business name – When registering a limited company you are not allowed to use a name that is in use by someone else. You can check if the name you are considering is available by using this online tool http://wck2.companieshouse.gov.uk//wcframe?name=accessCompanyInfo
Your registered office – This is the address that your company is registered at with Companies House. This means the address will be available on public record. If you currently work from home you may wish to consider using a “virtual office” service. Bells can provide this as a service.
Getting a business bank account – Limited companies must have their own bank account. Many people approach the bank that they bank with personally with a view to setting up a business account. This can save time in some instances but please bear in mind there are normally charges associated with business bank accounts so it is worth researching all the options. Many bank offer a charge free period which can be very useful as a start-up business! We would be happy to discuss with you our experiences of each high street banks offering.
Should you register for VAT – If your income (before expenses) is likely to go over £83,000 in the next twelve months you will need to think about registering your business for VAT. There are many VAT schemes to choose from so please discuss with us which one will be the most cost effective. It may even be worth you registering for VAT voluntarily as for some businesses this will mean big savings!
What records should you keep – You should always keep track of all your business income and expenses. You can find downloads to help with this on our resources page http://bellsaccountants.co.uk/resources or you may wish to discuss with us the option of using a piece of software such as Sage or Xero. We can provide training to assist you with your bookkeeping. Alternatively, ask us about our fixed fee proposals which take care of all that for you!
How much tax will you pay? – Limited companies currently pay 20% corporation tax on their profits. You should always consult with your accountant regularly on how much tax you should be keeping aside for HMRC at the end of the year. No one likes a surprise tax bill!