Sole trader to Ltd Co

Ease of transition from ST to Ltd coy

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Hi, I currently prepare the books, self assessment for a sole trader. He is now getting to a sufficient size where the transition to Ltd Co seems to make sense. T/O c £75k, Profit £35k.

Given I currently complete his books and returns using nothing more than good old Excel, I am wondering how easy it is for me to transition? He will be the sole director, paid via PAYE and dividends to maximise any available savings.

Do I need any special software to operate a payroll ? RTI Reporting?  do the accounts need to be filed using iXbrl? I can do the books, returns etc. Just thinking about the new areas that are required to be completed post transition?

Does anyone have a feel for this ?

Thanks

Dave

Replies (4)

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Worm
By TheLambtonWorm
27th Feb 2017 09:11

Life will be a lot easier for you if you have proper accounting software, and yes, you'll need to have software to file ixbrl.

I don't think the payroll will need to be any different to what you already use.

Do you have experience completing Ltd Co accounts from start to finish?

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By User deleted
27th Feb 2017 09:26

For the RTI reporting you could use HMRC Basic Paye tools or, if you've no other RTI requirements, for other client's and, the (new) employer, has less than 3 employees, Brightpay might be a solution.

Yes, you'll need to file using IXBRL and, other links to the relevant software can be found on here.

Do you undertake CPD and, do you keep up to date with reference literature, or online facilities? Do you have third party support, if it's required?

This is an ever changing arena and you must be at the top of your field.

I only mention these points as, and I mean this with the best of intentions, your initial enquiry had a certain naivety.

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By zebaa
27th Feb 2017 10:21

Answers in order of the question asked: Yes, yes, if you do them yes, if he does them no, this is a statement not a question, so an answer is not possible. And yes.

I also think you need to consider carefully about taking work on, for a fee, that you have never done before.

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PJ
By paulgrca.net
27th Feb 2017 13:02

Forget about the book-keeping and consider the other 30+ items you should have on your incorporation checklist!

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