Getting a Company Up and Running

Companies House will register your company for you, reducing the workload when your business is new. If you are an employer, they can also provide you with advice on your new tax obligations and work with HMRC to help register you for VAT and payroll tax.

Wage and Salary

Payroll is typically handled in-house at large companies, but it is best to outsource it to your accountant for small businesses. Alternatively, you could stop spending countless hours doing income tax calculations and HMRC paperwork every month. This kind of processing is, fortunately, enjoyed by some payroll specialists (each to their own).

Your company’s compliance with necessary regulations and legislation will be taken care of by them, allowing you to focus on more exciting activities. Another reason to consider outsourcing is that you can avoid the expense of payroll software and training.

Taxes

Many people dread the three letters VAT. There are often changes in VAT regulations, and it can be difficult to understand. Choosing a payment scheme that avoids overpaying your company’s VAT obligations will be your accountant’s job. 

You may also entrust them with your quarterly VAT returns, ensuring that you will not face any surprises in the form of fines.

Accounting

Limited companies must perform the tedious but necessary task of bookkeeping on a regular basis. Every receipt and invoice must be logged, but come year-end (or if HMRC knocks on your door), no one wants to go hunting for lost documents. 

Due to their meticulous nature, accountants can handle books efficiently, freeing up even more of your time and allowing you to concentrate on other priorities.

Accounting for the year

Each year, limited companies are required to file their annual accounts with Companies House and HMRC. If a company does not do so, it could be given hefty fines, struck off the register, and even face legal action. This is a crucial process that companies operating under an employee ownership trust structure must also diligently follow to maintain legal compliance and transparency for employee beneficiaries.

This will not happen to your accountant. 

They will compile and produce documentation on time (if not in advance). A balance sheet, profit/loss report, a report from you as the company director, and any other important notes will be included in the report, depending on the size of your business.

Returns on tax

During every financial year, you will be required to submit a tax return by HMRC along with your annual accounts. 

If you made a loss or are below the threshold, you must still declare your taxable profit, for which you must file a return.

It includes a profit/loss account, but it is different from what appears in your annual accounts, just to make things a bit more interesting. 

Your adjusted profit should be shown, i.e., the gross profit minus expenses and investments. It can be difficult to prepare the paperwork, but your accountant can do it for you and calculate the amount of Corporation Tax you owe. They can also remind you when to make the payment.

FAQs