Limited Company Setup Advice.

[Nigel]

The 150k is what my charted accountant recommend as a minimum to make it worth while, from personal experience of being a Ltd company I would not bother for less turn over than the 150k because to do it properly costs money in accountants fees to make sure your not breaking any company laws etc can out way the savings in tax.

My first year turnover was £80k.

It will be quite rare for a business to go straight to £150k turnover in year one.

Your accountant is talking tosh.

 

[Octopus]

Turnover is irrelevant if you are trying to minimise your tax and NI .......... its net profit that matters

 

[plugsandsparks]

I went ltd and VAt reg from day one, first year T/O was £40K.
I have to do the following.
1. Set up Ltd company with companies house, bit of a faff but straight forward. About £40
2. Annual return to companies house for any changes to company set up (£13)
3. Annual accounts (short form, ) - takes me 4 hours on a Sunday , these go to HMRC and Companies House, all online
4. VAT every quarter, takes me 1 hour.
5. Monthly PAYE return to HMRC, takes 15 minutes
6. Annual PAYE return, takes 5 minutes

Thats it, you are required to keep decent records and yes i have folders and folders of paper but i would have kept these records anyway even if sole trader.

So it costs me £13/year plus 11 hours work a year.
Its not for everyone but i prefer to do it myself, at the end of the day, if your accountant gets it wrong, its your bag to sort out and if HMRC come calling, its you they come to and you will have to pay your accountant to handle it. My business is very simple, no fixed assets, no clever stuff, just invoices to clients, invoices from suppliers, PAYE and expenses...

 

[stuarth]

My first year turnover was £80k.

It will be quite rare for a business to go straight to £150k turnover in year one.

Your accountant is talking tosh.

I am not an accountant so go by what they say.

 

[pirate]

OK, so 40k might be the threshold for some, double or treble that for others...as I said, it depends on your personal circumstances. I know a self-employed chap who has 8 companies, and allocates earnings where necessary to even out the VAT...he is very wealthy, so it works well for him...
Just saying...
(repeating...)
When I retired last year, I still got my accountant to do the books, and she is still doing them because the cessation accounts for my sold business were more complicated than I expected...once all these things are finished I may do my own tax return, but I doubt it. SAhe pointed out retirement reliefs and other areas where I could make savings, and for the huge outlay of about £400 she clawed back over £10k I didn't know I was entitled to benefit from, so all in all...get a professional in...
Now, where have I heard that before?