Accountancy practice from partnership to Ltd Co

Accountancy practice from partnership to Ltd Co

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Hi

Im just wondering has anyone had any experience of making the change from being in practice as a partnership and moving over to a Ltd Co.

If anyone has made the change im just wondering what needs to be done regarding 64/8 and engagement letters? will i have to issue new ones to all my existing clients? Did you write to your clients to explain the change?

It would i feel be very beneficial i feel to chat to someone who has been through the process as hopefully this will help me smooth out any potential problems 

 

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paddle steamer
By DJKL
17th Feb 2015 10:14

I switched in 2013

I changed in 2013 from a sole trader to a limited company.

1. Clients, yes, notifiy them of the change- engagement letters probably need changed, a letter stating that please read XXXXXXX sole trader as XXXXXXXXXLimited may suffice in short term but not very satisfactory, a reissued engagement letter is the way to go.

2. HMRC was the easiest to deal with, wrote to them and they changed name of firm within their records but left same agent codes and all clients intact against these codes.

3. I needed to apply for MLR registration as an ASP with HMRC for the new company, a little sweaty palmed as I set up company in July 2013, set target date of 30 September 2013 (when my current registration expired) and then received notice of cancellation of old registration with new one still not received. As days ticked closer to 30.9.13 was slightly concerned but new registration came through with about 5 days to go.

4. most painful part-getting bank to open account in name of the company- the individual at the branch (she covered the area) who dealt with this was either not available, on holiday or ill. However once I did eventually get an appointment the process was fairly quick.

5. WIP calculation was a right royal pain as at 30 September , it was the wrong time in the year with a bit too much time unbilled needing to be computed. I am glad ( only in this respect) that I do not have that many clients, if a large workload/ client base I would suggest pick your  date with care.

Trust this assists, it is not that painful.

 

Edit- late addition. If you have staff remember to allow enough time re all the TUPE obligations, this  for me was not an issue as I had no staff, but is you do remember to allow time to write the letters/consult etc, and new employment contracts will then be in order.

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By jonibarnes
17th Feb 2015 11:36

Thanks

Very useful to get a insight, pleased to hear dealing with HMRC was straightforward!

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By jonibarnes
14th Mar 2015 18:38

Hi djkl I'm getting nearer making the change over and confirmed with Hmrc it would just be a case of writing to them RE 64/8's however after looking on the hmrc website I came across some info that seemed to suggest that I will have to reissue all my 64/8 's for VAT clients.

I'm hoping I'm reading the guidance wrong, tried phoning them but they just referred me back to the webpage I already knew about! And we're no help at all!

I was therefore just wondering if you had any 64/8's in for VAT clients?

Jonathan

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