Those who are self-employed

[mattie]

Some advice, if you please - what are the hidden ramifications of entering into a plc arrangement? Would I have to complete company accounts each year, even if dormant? As I understand it, I issue 1 share for each director, is this correct? We've already deciced not to go partnership or sole trader, as there's two of us and I don't fancy losing my house if it goes pear-shaped.

This is all far too grown up.

All advice gratefuly receive

 

[free spirit]

limited liability partnership... just look it up as if there's only 2 people involved I can't see why this wouldn't be the best arrangement.

 

[mattie]

limited liability partnership... just look it up as if there's only 2 people involved I can't see why this wouldn't be the best arrangement.

Cheers for advice - the reason we're not going this way is that we're planning on inviting others in at a later date, which a partnership makes a bit tricky.

 

[Limejuice]

Why a plc? That's for over 50 shareholders, yes?

Start with a nice little limited company - one director plus secretary, annual return, simple company accounts, get you accountant to do paye, corp tax etc. With cert of incorporation, you open a bank account (shop around), open a VAT account.

Bob's your uncle. A living breathing third-party company. It'll cost less than £50 to get going. Annual accounting fees £300 - £500.

 

[lights.out.london]

Why a plc? That's for over 50 shareholders, yes?

Start with a nice little limited company - one director plus secretary, annual return, simple company accounts, get you accountant to do paye, corp tax etc. With cert of incorporation, you open a bank account (shop around), open a VAT account.

Bob's your uncle. A living breathing third-party company. It'll cost less than £50 to get going. Annual accounting fees £300 - £500.

^ what limejuice said .

You may get your audit and account prep fees cheaper, esp if you find an accountant going out on their own as a sole practitioner. Fees depend on the volume of transactions ie time taken to prepare and audit the receipts, invoices, credit notes etc etc.

If you're a low transaction biz, it could come in as low as £200pa or less than a fiver a week. Most accountants give advice to their clients as part of the service.

 

[mattie]

tits, sorry, written late at night - I meant Ltd, not plc.

I've got forms 10 and 12 from Companies House, and I'm now a little bit nervous.

 

[Leafster]

tits, sorry, written late at night - I meant Ltd, not plc.

I've got forms 10 and 12 from Companies House, and I'm now a little bit nervous.

Why don't you use a Company Formation Agent? It may cost a little more but they all form loads of companies so they should get everything in order for you - save you the worry of getting it wrong.

ETA: Having said that, if you went and had a chat to an Accountant first they may be able to talk you through all the pros and cons to make sure a Ltd Co really is the trading vehicle you need. If it is the right way forward they will be able to form the company for you (probably through a Formation Agent).

 

[Limejuice]

Why don't you use a Company Formation Agent?.

Good point. I used one and did the whole lot online when I set mine up.

 

[BigTom]

you don't necessarily need an accountant either, as you can get special exemptions for very small businesses, that will allow you to do your own accounts and submit just abbreviated accounts to companies house/hmrc.
I can't remember what the threshold's are in terms of employees or turnover for this though.

 

[Leafster]

you don't necessarily need an accountant either, as you can get special exemptions for very small businesses, that will allow you to do your own accounts and submit just abbreviated accounts to companies house/hmrc.
I can't remember what the threshold's are in terms of employees or turnover for this though.

I think you might be confusing an Accountant with an Auditor. In most cases a company will not require an audit if they qualify as a small company. By small I mean: less than 50 employees, a turnover of less than £6.5 million and a Balance Sheet total of less than £3.26 million (the figures increased this year).

It's true that you don't need an Accountant to prepare your accounts, work out your tax etc but when you run a small business there are many other things you might want to focus your attentions on instead so having someone on hand to provide advice and help you with the tricky bits is often a good idea.

PS I might be biased though

 

[BigTom]

It's true that you don't need an Accountant to prepare your accounts, work out your tax etc but when you run a small business there are many other things you might want to focus your attentions on instead so having someone on hand to provide advice and help you with the tricky bits is often a good idea.

PS I might be biased though

no, I agree with you completely. I did the accounts myself for our company one year and don't want to do it ever again.. having said that I do the paye and vat returns myself rather than pay someone else for it.

 

[Leafster]

no, I agree with you completely. I did the accounts myself for our company one year and don't want to do it ever again.. having said that I do the paye and vat returns myself rather than pay someone else for it.

Yeah, it's all about what you feel capable of doing and what's most cost-effective.

 

[mattie]

Is it a requirement that accounts be submitted, even if there's no actual cash flow?

I appreciate how stupid it appears to set up a company with no intent to actually do anything, however at this point in time we're putting some patents through and setting up a website, and want the company to be included/listed. We may not actually get anything running for a year or two.

 

[Leafster]

Accounts would have to be submitted to Companies House even if you didn't trade. If the company has never traded then a simple form can be used. IIRC it's called a DCA.

You'd still need to provide some info to HMR&C too but it's relatively straight-forward if no trading has taken place.

Don't forget, you'd still need to complete an Annual Return to Companies House too.

 

[Leafster]

You may also find that as a result of setting up the company and being appointed a director that you'll be sent a personal Tax Return to complete if you don't do them already.

 

[mattie]

Cheers buddy, most useful.

 

[mattie]

This is really getting on my tits. Forms 10 and 12 done with appropriate signature from legal bod, I'm in the dark over the articles and memorandum - I know they're essentially just the fine print but I can't even figure this bit out.

Does anyone know if I want form CO1B or forms CO1A and CO2 from this lot:
http://www.oyezformslink.co.uk/f_chapters/4_0.htm

They seem to be free to print, and the sections to complete seem relatively straightforward. I'm just not sure what the differences between them are.

On quite a budget until next contract, so doing this on the cheap i.e. on my todd.

All help gratefully received.

 

[Leafster]

This is really getting on my tits. Forms 10 and 12 done with appropriate signature from legal bod, I'm in the dark over the articles and memorandum - I know they're essentially just the fine print but I can't even figure this bit out.

Does anyone know if I want form CO1B or forms CO1A and CO2 from this lot:
http://www.oyezformslink.co.uk/f_chapters/4_0.htm

They seem to be free to print, and the sections to complete seem relatively straightforward. I'm just not sure what the differences between them are.

On quite a budget until next contract, so doing this on the cheap i.e. on my todd.

All help gratefully received.

I wouldn't have said the M&A are "just" the fine print! They are rules that govern what the company can do and how it is run.

As I suggested before I always let the Formation Agents deal with the paperwork when forming a company but normally companies will adopt Table A with minor amendments if necessary.

 

[mattie]

I wouldn't have said the M&A are "just" the fine print! They are rules that govern what the company can do and how it is run.

As I suggested before I always let the Formation Agents deal with the paperwork when forming a company but normally companies will adopt Table A with minor amendments if necessary.

I refer to them as small print as they are generally just an adopted set of legal principles - although some companies may modify, most just use as is.

I may just wait for the start of contract before registering, so I've got some money to pay an agent.

 

[mattie]

Ignore all this, going though an agent. Required documentation just not clear, and risk of balls-up too high and potentially ruinous.

Cheers anyway.