Do i need an accountant?

**Sockpuppet** · 10 January 2007, 17:29

I'd advise yes.

You CAN do all the filing yourself however this whole "retain all profits in business" thing that you have going on really needs to be looked over by an accountant. I dont know what you are planning on doing but unless you plan to work for free and never take any money out there are better ways to do it and an accountant you must seek.

**poopscoop** · 10 January 2007, 17:34

Originally posted by Sockpuppet

I'd advise yes.

You CAN do all the filing yourself however this whole "retain all profits in business" thing that you have going on really needs to be looked over by an accountant. I dont know what you are planning on doing but unless you plan to work for free and never take any money out there are better ways to do it and an accountant you must seek.

I'm going to keep all profits in the company and use money from somewhere else to live on. For the first few months I'm thinking of not using an accountant, but will use one (Nixon Williams) when doing corporation tax and filing the year end accounts.

**Sockpuppet** · 10 January 2007, 17:48

Thats really not the best way unless you have another wage to live on.

If not (living on savings) then you might as well take money out of the business and use up your full tax allowance.

There are more tax efficent ways of getting the cash out of the business than just re-investing it.

**Waldorf** · 12 January 2007, 08:38

I would suggest that you get one from day one, the setup can be important and if that is wrong it can be expensive to put right.

For the sake of a few quid each month is it really worth the hassle of trying to do something we do not really understand?

I have never regretted having one (Nixon's) they save time and money

**cojak** · 12 January 2007, 08:52

Having too much money in company accounts can lead to problems as the IR may want to re-categorise your company as a Financial Services company and tax you differently.

Or something like that.

Get yerself an accountant, basically.

**poopscoop** · 13 January 2007, 01:13

I was thinking of setting up my limited company now, without an accountant. When my first contract finishes and if I do get a second contract then I will get an accountant.

I'm thinking of doing it this way as I am retaining profits and not taking anything out.

Regards

**Back In Business** · 13 January 2007, 09:38

Even if you don't want to spend the profits you could take your taxable allowance and your expense claims out and place them into something more profitable than your banking account.

**Waldorf** · 13 January 2007, 12:42

Originally posted by poopscoop

I was thinking of setting up my limited company now, without an accountant. When my first contract finishes and if I do get a second contract then I will get an accountant.

Regards

I think this will be a false economy, get an accountant and avoid the hassle!

**OrangeHopper** · 15 January 2007, 12:49

If your intention is to only do the one short term contract then it is possible to simply declare the income on your tax return and pay the appropriate personal tax then.

Of course, it is advisable to engage an accountant if you are a little green at these things.

Do i need an accountant?