what do I need to report and who to? Ltd company

Hi all,

I would appreciate some basic pointers as I am overwhelmed to the point of becoming completely lost. I started a LTD company some months ago. Nothing happened while I did research on my market. Lately I put some of my own money into the business bank account and then I promptly spent it on equipment for the business. I haven't launched/started the business and have not made sales.

I am vaguely aware the financial year is ending soon. Do I need to prepare a financial statement (or similar) and do I have to report/send it to someone (the government?)

All advice appreciated!

 

Comments
Blackfalcon's picture

Luck of information.

Blackfalcon | | Permalink

"Do I need to prepare a financial statement (or similar) and do I have to report/send it to someone (the government?)"

Best thing you can do for your business and yourself is find an accountant.

Annual return

Stephen Morris | | Permalink

 You will need to submit an annual return to Companies House. This must be done on time else you you can get a criminal record. Companies usually send out a reminder in the month when the Return is due. If you do it online it costs £14. If you do it postally it costs £30. Don't leave it until the last minute because you may need to search or verify information before submitting.

The company's accounts will need to be submitted to Companies House within 9 months of the year end. Company accounts must be in a legally prescribed format. There is a £150 late filing penalty.

Possibly the best thing you can do is contact a local, helpful neighbourhood accountant.  Ascertain his or her charges and shop around if you can. Choosing a local accountant should keep your costs down. Read the accountant's terms of engagement very carefully. They should set out the duties he or she owes you and the duties he or she owes the authorities. There can be a conflict between these duties and you are likely to come off worse where these duties conflict. Clarify anything you do not understand.

HMRC are also a force to be reckoned with if you are operating through a company. I assume you bought your company "off the shelf" otherwise HMRC would have contacted you by now.

Company administration can be very burdensome. You may be better off trading as a sole trader rather than as a company. You may therefore need to dissolve the company which requires legal formalities to be adhered to with Companies House.

Companies publish leaflets on various aspects of company administration. These can be downloaded from the Companies House website.

Good luck!

Late Registration

beverly chester | | Permalink

 I agree with what Stephen has written but there is one more very important factor that you need to attend to immediately. That is whether you have notified HM Revenue and Customs that you are trading at all. If not you will almost certainly get a £100 late filing penalty. If you have not traded in the first year you might be able to get that cancelled on appeal but you woud really be best to ask an Accountant to do that for you as you do not seem to know the proceedures that need to be followed. If you leave this too long you will find it can be very costly.

I can well understand that you feel Accountancy fees are something you can save on in the early years but you really have not made the wisest decision as a good accountant should be able to save you more than their fees. If you are a small business don't go to a very large firm of Accountants. THey charge higher fees because they have experts in many fields "in house" and you pay for the facility even if you don't use it. Other Accountnats can buy that service in as and when needed. On the other hand you do need someone that is experienced and the easiest way to find someone reliable is to ask around for recommendations from local businesses. Qualifications are good but not always the be all and end all of a small business Accountant, some totally unqualified Accountants can still offer a good basic service although you woud be best going to someone qualified if you continue with the Ltd Co. Go too cheap and you are not likely to find you get a very good job for your money. Above all you need to go with someone you feel comfortable with as you will need to ask lots of questions in your early years. 

Unless you have good reason to use a Ltd Co I woud also suggest that you start out as a sole trader unless of course you are going to be borrowing lots of money/taking credit that you might not be able to repay. Take care though because if borrowing from the Bank they will almost certainly ask you to sign a personal guarantee which will leave you personally responsible for the Company Debt to them. In other words it effectively invalidates the Ltd Liability which may be the very reason you have chosen this vehicle. 

The Companies House website is not the easiest one to negotiate and as Stephen has already pointed out there can be serious consequences if things are not done at the right time. Don;t leave anything until the;ast minute as you will probably need some guidence. There will also be a Corporation Tax Return due or maybe two for the first trading period if the Company was started up in the middle of a month (one for the first twelve months and one for the period from the end of the first year to the end of that month). I would be a bit surprised if you could cope with all  that on your own given your original post.  

Another thing to think about is whether the Company falls foul of IR35 legislation. It doesn't sound like it from your original post but you should read up about it on the Inland Revenue web site to be sure. There is also some general information on the Business link site. Google Business Link, then go to Business Support and Information. You will also have to submit a personal Tax Return for the year to 5th April 2011 by October 31st or January 31stt if done on line. Fees are not cheap but they will save you a lot of money in penalties if you do not know what you are doing. Take care and good luck for the future. 

 

 

 

Find an accountant

daviesluke101 | | Permalink

I agree with blackfalcon. The best thing for you to do is hire a good accountant to help you with your needs. If you don't know the processes and legalities it will be hard for you to comply with the necessary requirements. Hire an accountant and let him or her help you.

 

http://www.ripefinancial.com/

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