Incorporating a UK Ltd

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KnowledgeDigger

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Jul 6, 2008
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I'm from europe, but a non UK resident and traveling a lot, including extended stays outside of europe.

Do any of the UK Ltd owners think that it's realistic for me to run it just with quickbooks for the filings and without an accountant?

Do you see any problems in getting an account set up at Barclays or other banks over the internet?
 


Unfortunately with a Ltd you need the services of a chartered accountant (who is qualified to produce Ltd. co. end of year statements). The whole thing is bedevilled in red tape and you can't scratch your ass without submitting a paper or e-form to companies house. The accountant will cost you around £1,000 a year to produce end of year accounts. There are also implications in getting to withdraw any money as you don't actually own it - the company does, and you are basically just an employee. I would look into in further if I were you before taking the plunge. An accountant will generally be able to help with the setting up of a company bank account as well given enough forms of id.
 
"There are also implications in getting to withdraw any money as you don't actually own it - the company does, and you are basically just an employee" that is also true of most small corps in the USA. It either makes sense as a form of insurance against lawsuits - or it doesn't make sense. I expect it is the same anywhere, really.
 
Agree, just depends if you need the Ltd liability, and the 20% corporation tax rate vs. higher tax rate but more relaxed procedures, access to the money and the ability to pretty much admin your own accounts that you would get as a sole trader over here.
 
edward_b said:
The accountant will cost you around £1,000 a year to produce end of year accounts.
Click to expand...

You seriously need to look into changing accountants.

Mine does my month end figures, all my year end stuff, payroll for 4,and both my tax return and my wife's for £100 a month and that's including VAT.

Mind you, I've never met them and it's all done over the internet, phone and mail.

I can't see how, if you keep good records with Excel, keep your statements (both income and outgoings) neatly filed, that an accountant will charge more than £300 to do the year end stuff.
 
If you generally keep shit online in Quickbook / Sage etc and it's done properly in there, they won't charge much at all.
 
Yes £1200 for end of year figures PLUS all the rest I listed.

What I was getting at was if they do all this for me for £1200 then £1000 simply for the end of year stuff is way overpriced.
 
@Artdeco, not sure of the US sole prop rules tbh, but Sole Trader in the uk basically means that...no limited liability and a higher tax rate (the prevailing personal tax band). UK ltd corporation tax is 20% currently I think, and also you are then taxed personally if you draw a wage from the company, either 25% or 40% depending on annual amount. There are ways around it with dividends and things, but thats broadly it. @maffs - sounds pretty reasonable! :) esp. for doing PAYE and all...I am using a company local to me so I pop in and see them at the office, or they come to me hence the bigger bill I guess.
 
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Yes they are. I'm on the middle tier scheme.

If you want info they're at itaccounting.co.uk. Aimed at IT professionals mostly but we bought a retail business a year ago which came with staff and they started doing the payroll without an increase in fees.

Don't expect them to be proactive in saving you money though. You can ask them and they'll offer advice but very rarely offer it freely.

Get what you pay for I guess.
 
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