DIY guide to setting up a limited company

[CanadianExpat]

I'm a great fan of these boards, and particularly of the "first timers" articles. Fully conscious of the potentirisks, but with a good grounding in accounting (albeit in another country) and an interest in these matters, I've decided to do it alone without an account.

Can anyone recommend a good book that will help me to navigate Companies House, HMRC, setting up bank accounts and payroll, etc, with a minimum off fuss? I'm not looking for an idiot's guide to bookkeeping and tax, but more of a checklist and warning of the most important bear traps along the way.

[malvolio]

I'm a great fan of these boards, and particularly of the "first timers" articles. Fully conscious of the potentirisks, but with a good grounding in accounting (albeit in another country) and an interest in these matters, I've decided to do it alone without an account.

Can anyone recommend a good book that will help me to navigate Companies House, HMRC, setting up bank accounts and payroll, etc, with a minimum off fuss? I'm not looking for an idiot's guide to bookkeeping and tax, but more of a checklist and warning of the most important bear traps along the way.

Go to www.ipse.co.uk and download the Guide to Freelancing from the Resources tab. If it's not in there you probably don't need it.

Not using an accountant is a bad idea unless you are fully up to speed on UK tax law and how it applies to micro-businesses, but it's your call.

[Alan @ BroomeAffinity]

Get an accountant. For what will likely be an annual investment of the equivalent of 2 days' work, it makes a lot of sense.

[CanadianExpat]

Go to www.ipse.co.uk and download the Guide to Freelancing from the Resources tab. If it's not in there you probably don't need it.

Not using an accountant is a bad idea unless you are fully up to speed on UK tax law and how it applies to micro-businesses, but it's your call.

Thank you. I will take a look at these.

[TheFaQQer]

I've decided to do it alone without an account.

How will you receive funds payable to the company without an account?

[tractor]

...

I'm a great fan of these boards, and particularly of the "first timers" articles. Fully conscious of the potentirisks, but with a good grounding in accounting (albeit in another country) and an interest in these matters, I've decided to do it alone without an account.

Can anyone recommend a good book that will help me to navigate Companies House, HMRC, setting up bank accounts and payroll, etc, with a minimum off fuss? I'm not looking for an idiot's guide to bookkeeping and tax, but more of a checklist and warning of the most important bear traps along the way.

Oxymoron alert!

[ContrataxLtd]

Not using an accountant is a bad idea unless you are fully up to speed on UK tax law and how it applies to micro-businesses, but it's your call.

+1 to this especially for the first few years. For the average contractor, accountancy fees are probably 2 or 3 days billing a year which is nothing considering the amount of time/effort a good accountant should save you.

Martin
Contratax Ltd

[sal]

Not using an accountant is a bad idea unless you are fully up to speed on UK tax law and how it applies to micro-businesses, but it's your call.

I was thinking exactly what you are thinking - I had experience in accounting of small business in another country and the UK tax law that applies to the majority of the contractors is piece of cake. BUT in reality you need the accountant mostly to appear more credible to other business including clients. If you don't have an accountant you are regarded as irresponsible and not trustworthy businessman...

Plus you will need a reference from your accountant for even the simplest task of renting a place to live, since you are not a permie and you can't supply reference being your own employer. Not to mention getting any finance like mortgage.

+1 to this especially for the first few years. For the average contractor, accountancy fees are probably 2 or 3 days billing a year which is nothing considering the amount of time/effort a good accountant should save you.

Martin
Contratax Ltd

Oh, Oh, you mean the 5min spend every now and then to send a reminder about filing VAT return and paying the VAT and once a year 1-2h to go through the "massive" amount of 50 or so outgoing invoices and about the same amount of incoming ones at the end of the year? When everything is already in IOB or similar electronic system already... C'mon

Besides the key word in your post is GOOD accountant - there aren't that many out there, most are only drones in a big consultancy and don't give a tulip as long as they have done the bare minimum promised in the contract if even that.

[GillsMan]

Plus you will need a reference from your accountant for even the simplest task of renting a place to live, since you are not a permie and you can't supply reference being your own employer. Not to mention getting any finance like mortgage.

This. I've probably needed an accountant reference for renting, mortgaging and being a guarantor for somebody about four or five times in the last few years.

[TheFaQQer]

Oh, Oh, you mean the 5min spend every now and then to send a reminder about filing VAT return and paying the VAT and once a year 1-2h to go through the "massive" amount of 50 or so outgoing invoices and about the same amount of incoming ones at the end of the year? When everything is already in IOB or similar electronic system already... C'mon

No, it's more like asking your accountant "what are the implications of paying a salary of £10000 this year?" and having them run the figures for you, calculating the savings over other salary options (OK, TCP did his spreadsheet that could be used, or you could ask on CUK and get a barrage of "what does you accountant say?" responses).

Or asking an accountant about HMRC policies that they either know off the top of their heads, or can go away and research and tell you the answer rather than having to do it yourself. Particularly when you want an opinion based on their experience (or that of their colleagues) rather than just looking at the blankness of the HMRC manuals and guidelines, which don't always reflect everything that they could do.