Company formation fees + other services

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Dear members, please can you advise on company incorporation/formation fees (invoiced by forming agent) incured and paid a day before company was incorporated by the will be director.

I understand that company incorporation fee ( no. 1) can be reimbursed to the director, but it is not tax deductible - would this apply also to fee no. 2?

Would the incorporation/formation fee(s) stay on a balance sheet as an asset of the company? Are the fees 3 to 9 tax deductable?

Fee - Net/VAT/Gross

  1. Companies House Charge: £10.00/£0.00/£10.00
  2. Ltd with multiple shares: £18.00/£3.60/£21.60
  3. Printed memorandum and articles of association: £2.00/£0.40/£2.40
  4. Printed share certificates: £2.00/£0.40/£2.40
  5. Printed Certificate of Incorporation: £2.00/£0.40/£2.40
  6. Package Count Discount: -£4.00/-£0.80/-£4.80
  7. Pre order review: £2.00/£0.40/£2.40
  8. Registered Office service: £36.00/£7.20/£43.20
  9. Commercial Mail Scanned Service: £48.00/£9.60/£57.60

Replies (7)

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By Moonbeam
06th Mar 2024 18:34

Engage an accountant to help you with this. I'm sure you'll find you'll need them for lots more things subsequently.

Thanks (1)
By Paul Crowley
06th Mar 2024 19:28

He bought all the extras?
I always tell clients to pick the cheapest, usually £15 or less.

Thanks (2)
Replying to Paul Crowley:
By DKB-Sheffield
06th Mar 2024 22:27

Paul Crowley wrote:

He bought all the extras?
I always tell clients to pick the cheapest, usually £15 or less.


What's a pre-order review? Never seen that one before. I don't hold much confidence in any review carried out for £2 though!

Thanks (1)
Replying to DKB-Sheffield:
By FactChecker
06th Mar 2024 23:15

Guess it's like the similar 'service' offered by the P.O. if you're handing in your Passport Renewal form/etc at one of their sites.
It talks about 'checking' your application, but only does the minimal mechanistic checks (like signing outside the box or wearing a mask in your photo) that would definitely get the application rejected. It does NOT check validity of the data or therefore guarantee acceptance by the Passport Office ... but they charge a LOT more than £2 for that!

Thanks (3)
By Dougscott
06th Mar 2024 23:24

I'm always amazed that people set up companies without taking accountancy advice. Can someone explain to me why this seems to happen so much? Surely the natural default position for novices is to start up on your own as self-employed?

Thanks (0)
Replying to Dougscott:
By DKB-Sheffield
06th Mar 2024 23:49

Often (and likely not the case with the OP who... at least seems to have some knowledge of deductible and non-deductible expenses, and who I am sure has taken some advice - even if not of the tax/ accounting variety) it's simply a prestige (or self-importance/ egostistical) thing.

As you are aware... 'MD and Co Sec of Bodge-It & Scarper Builders Limited' sounds much better than 'Jo(e) Bloggs t/a B/S Builders'. Looks grand on business cards too. In fact, why not the whole hog and add PLC (it is afterall a private limited company as we've had mentioned within these walls in the past). Or, if you really wish to jazz it up... call it an SPV!

As I say... not aimed at the OP - they hopefully have a very good reason for incorporating. However, in the wider context of the 'incorporated self employed' (or whatever term was used on the budget thread), the perceived prestige/ pomposity of being the next Lord Sugar really does matter!

@OP... FWIW... I agree with some of your 'allowables' and some of your 'disallowables'. The rest are frankly not worth taking the time to consider (yours or mine). That should held narrow it down a little. An tax adviser/ accountant will be able to advise though... and the good news is... you have between 12 and 24 months to consider CT deductability - of this, and all other costs.

Thanks (1)
Replying to DKB-Sheffield:
By DKB-Sheffield
07th Mar 2024 00:01

Of course, having said all of that...

@OP... I've just read the your previous question from January and see you are 'still learning'. Please tell me this question doesn't relate to a paying client? And please tell me any answers/ pointers/ comments given on this forum will not be used or passed to said paying client?

I take it you are insured, AML supervised, perhaps a member of a PB...? Either way... when taking on any work - consider if it is in within the scope of your abilities and knowledge. And that scope includes both the knowledge of where to find answers (NOT AWeb), and the knowledge of when to refer something on!

Thanks (2)