Limited Company Accountants Helping You Pay the Right Tax, Not More

Can I prepare my limited company accounts?

You can perform your accounting for your limited company, such as preparing and submitting your annual accounts.

However, most limited companies hire a professional to run their businesses. It can be challenging to handle everything yourself because limited companies have more complicated legal and organisational requirements than sole proprietorships. There are heavy fines if you make a mistake.

Accountants are experts in business finance; if you work with one, they can help you reduce the stress of submitting your accounts to HMRC and Companies House. They can enable you to achieve all regulatory obligations and minimise penalties, ensuring company accounts meet legal accounting standards.

It's critical to note that even if you hire an accountant, it is still the legal responsibility of the company directors to ensure that the accounts are accurate.

How to set up a bank account for a Limited Company?

Opening a business account for your limited business usually takes 1-10 days with online banks and can take longer with traditional high street banks.

Remember, apart from sole traders, your business and personal accounts must be kept separate. A limited corporation must present the following crucial documents to create a bank account:

• ✓Certificate of incorporation, along with business number and name
• ✓Identification documents such as a passport or driver's license
• ✓Personal bank statements and recent utility bills (if you do not have a personal account there)
• ✓Business plans and budgets

What taxes do limited corporations need to pay?

In the UK, limited corporations are subject to several taxes, including:

• ✓Corporation Tax: This tax is based on the limited company's earnings. In the UK, corporation tax is now charged between 19% to 25%.
• ✓Value Added Tax (VAT): When a limited company registers for VAT, it must charge VAT on sales and pay VAT on purchases. The rate of VAT varies based on the kind of goods or services being sold.
• ✓Employer's National Insurance Contributions (NICs): Limited companies that have employees must pay the employer's NICs on their employees' earnings above a certain threshold.
• ✓Business Rates: If the limited company owns or rents commercial property, it may be required to pay business rates to the local council.
• ✓Personal Taxes: If the limited company's directors or shareholders receive income from the business, they may be responsible for paying personal taxes such as income tax and national insurance contributions.
• ✓Other Taxes: The limited company may be required to pay additional taxes, such as Excise Duty, Environmental Taxes, Stamp Duty Land Tax, depending on the nature of the business.

What is a limited company accountant?

A limited company accountant is a financial expert who offers accounting and services to limited companies. They can assist with accounting, payroll, tax returns, financial planning, and business decision-making.

What services do limited company accountants typically offer?

• ✓Bookkeeping and accounting: The accountant can help you keep accurate records of your financial transactions, including purchases, sales, expenses, and receipts.
• ✓Payroll services: The accountant can handle your company's payroll, including processing employee salaries, issuing payslips, and submitting Real Time Information (RTI) returns to HMRC.
• ✓VAT registration and returns: The accountant can help businesses to register for VAT if their business meets the threshold and prepare companies to file their VAT returns on time.
• ✓Audit and assurance services: The accountant can be qualified to offer audit services to your company if they are a member of a recognised professional organisation.
• ✓Company secretarial services: Accountants can assist in maintaining your company's statutory records, such as the cap table management, share issuance, SEIS/EIS registration and compliance, registers of members, directors, and charges. Additionally, they can submit annual confirmation statements to Companies House.

Can a limited company accountant help me save money on taxes?

• ✓Tax planning: Accountants can offer essential tax planning to ensure you and the business pay the minimum amount of tax.
• ✓Identifying tax deductions: Your accountant can assist you in identifying tax-deductible expenses, such as travel for business purposes, equipment purchases, and office supplies. By deducting these expenditures from your tax liability, you can minimise the tax you owe.
• ✓Making financial arrangements: Your accountant can assist you in organising your finances to reduce your tax liability. For instance, they advise you on dividing income between your firm and yourself to benefit from reduced tax rates.
• ✓Maximise tax credits: Your accountant can assist you in discovering tax credits that you may be qualified for, like Research and Development tax credits (R&D) or tax credits for hiring specific types of employees. You can minimise your tax liability by reaping the benefits of these credits.

What should you look for before working with a Limited Company Accountant?

You must be careful when selecting the correct accountant for your limited company. Here are a few suggestions of what to look for:

• ✓The individual you choose to work with as your accountant must ultimately be someone you can trust and be comfortable with.
• ✓You should also verify that your accountant has the necessary credentials and is a member of an approved governing body, like ACCA, ICAEW, AAT etc. Even though many claim to be “accountants,” they may not be licensed.
• ✓You should confirm the history of the accountancy firm to ensure that they have experience in practice.
• ✓You should request recommendations or testimonials from the other clients they manage.
• ✓If you need extra assistance or services, such as auditing, payroll processing, management accounting, or tax planning, you should verify that the accountant can provide these services.
• ✓You should clearly understand your accountant's fee structure before hiring them.