Seems I need a new ltd - cheapest easiest way?

[julianf]

I used to have a ltd company.

I disolved it as all the fees didn't make sense. All my work is online, I never even used the company bank account that was costing me rent. My partner did the books, but it cost me £700 to get the accounts submitted, etc etc.

Ive been told now that you don't actually need an accountant, but I was under the impression it was essential.

My previous company was disolved with no debt. ( I even paid debts that I could legally have ignored, as I'm not in the habit of ripping people off!)

So I guess my question is -

Can I run a ltd without a standard bank account?

(All my transactions are PayPal even wage)

And

Can I avoid paying an accountant to do the returns? As I say, I thought this was essential but someone here said it wasn't. Again this will be a ltd, and not a sole trader.

 

[premmington]

Why the need to go Ltd...?

Borrowing a lot of money - any real trading risk....?

 

[rtbcomp]

A limited company is an entity it its own right so it really needs its own bank account, otherwise it would be like letting another person share your bank account. It also keeps yours and the company's money separate. I don't see why a dedicated PayPal account should be a problem.

You don't need an accountant, but it's useful to have an independent person do your accounts to keep you on the straight and narrow. (Assuming you get a good one).

 

[julianf]

My work PayPal account is a business account.

I also have a personal PayPal. So that is all separated.

(Ie I wasn't wanting to use a personal account for the business - it's all sepperate, just no use for a traditional "bank" account)

 

[julianf]

I want the protection a ltd would afford.

At present I (personally) own everything.

Most of my work is export. Americans can be proper crazy with law stuff, and, although, realistically, there should not be any issue, I just don't want to leave myself open.

If I can set up a quick and easy ltd, it seems to cover me entirely. I will still own the machinery. If it all goes crazy wrong somehow, I will still own my home (or at least the part of it that then bank has no hand in)

If I can avoid bank rent and accountancy fees it should be a very cheap protection layer?

 

[julianf]

The reason to look into it right now is I've got a new project in the making that involves making a few more pattern style parts.

They are not passing off at all, but some of the American companies just send out cease and desist to anyone they can.

The copywrite stuff with PCBs and interface is not wholly black and white, and, whilst I will be entirely legal, in America it very.much seems to be the case that the person with the most money wins, regardless of the right and wrong of it all.

Really I just want to be able to tell them to stuff it and not have to worry if they want to spend more than the value of my home trying to "win".

(I don't have any outstanding issues, just want to not have to worry about it)

 

[RaceDiagnostics]

I think the rules changed recently on how you do your accounts for a ltd company, you need to use approved accounting software, I used to just use excel. So there will be some additional costs associated with that.

 

[premmington]

I think the rules changed recently on how you do your accounts for a ltd company, you need to use approved accounting software, I used to just use excel. So there will be some additional costs associated with that.

Correct.... MTD (Making tax digital)

 

[Kayos]

The reason to look into it right now is I've got a new project in the making that involves making a few more pattern style parts.

They are not passing off at all, but some of the American companies just send out cease and desist to anyone they can.

The copywrite stuff with PCBs and interface is not wholly black and white, and, whilst I will be entirely legal, in America it very.much seems to be the case that the person with the most money wins, regardless of the right and wrong of it all.

Really I just want to be able to tell them to stuff it and not have to worry if they want to spend more than the value of my home trying to "win".

(I don't have any outstanding issues, just want to not have to worry about it)

It’s not only I’m Anerica those with the most money win

You will need the accounting software for the making tax digital nonsense

I think preformed companies with a name already chosen is the cheapest, you (or more accurately) the business will need a bank account

 

[rtbcomp]

...

I think preformed companies with a name already chosen is the cheapest, you (or more accurately) the business will need a bank account

That's what I did. It came with a couple of directors who resigned when I was appointed and the name changed to the name I wanted.

 

[mike os]

Never understand posts like this. ..

If you need anything there is usually a cost involved, the costs of Ltd are only slightly higher than sole trader, and given the 'protection' it affords is not expensive at all.

You don't nessesarily need a business account, just a separate account for the company and proper accounts

 

[julianf]

I guess I don't really mind spending up front - if I need to buy software for accounting or whatever, so long as it's not crazy.

It's the ongoing cost that I don't want.


Ie I don't need the setup to be zero cost (not that I want to spend money if I don't have to!) but I don't want to sign up for hundreds of pounds a year for someone to click "submit" on my behalf.

Re bank accounts -

Again, I have a business PayPal account. I presume this is covered under the FSA and all that. Can anyone say with absolute certainty that this is unacceptable?

 

[julianf]

Never understand posts like this. ..

If you need anything there is usually a cost involved, the costs of Ltd are only slightly higher than sole trader, and given the 'protection' it affords is not expensive at all

Was that to me?

This is what I'm asking. My previous ltd cost me a load more than I pay out now. Probably about £1k per year. It was just money down the drain. As I hoped I made clear, I thought that I had to pay for these services (ie registered accountant etc) so I'm trying to check that I don't.

 

[Wightsparks]

You can form a Ltd company for a few quid (literally!) - google "formations", but obviously do a bit of checking on whom you are dealing with.

Unsure about the PP account - but a bank business account will be free for a few years from the usual suspects and come with a business debit card that is very useful for expenses. I would not put all my eggs in the PP basket personally.

MTD is coming but a way off and initially will relate to VAT.

I use Quickfile to do all my book keeping, www.quickfile.co.uk simple, cheap, easy, great support. It's in the cloud so backups and security are taken care of (Amazon back end I believe) - There are other similar packages - (Xero or Free Agent for example). This takes me 30 mins/month as it sucks all my bank transactions in and auto tags them and raises any purchase orders needed. I can raise invoices and it tracks everything and submits my VAT return with the click of a button.

If you are employing yourself as a Director you will need PAYE system - I use Brightpay https://www.brightpay.co.uk/ again simple and free (up to 3 employees). You are supposed to submit monthly but usually you just file in advance for "no pay" until Feb then file for a whole years salary in March (Usually the magical amount that costs you or the company no tax as below tax allowance and other thresholds £8160 this FY- there will be articles about next year) then pay yourself dividends and account for those in a Self Assesment. You can still take money out over the year QF or other will look after that.

For about £100 a year an accountant will take your numbers from your software (you give them limited access) and format them for Co's House and HMRC. Here's a tip, make sure you start your company on the 1st of a month, ideally a natural Quarter - if you start away from that you pay to file 2 lots of accounts for your first year as HMRC will only take 12 months. Not worth doing this yourself.

Also the company will need an EORI number for import/export - https://www.gov.uk/eori easy enough.

HTH, feel free to PM me if you have specific questions.

 

[MoreWellie]

I think the rules changed recently on how you do your accounts for a ltd company, you need to use approved accounting software, I used to just use excel. So there will be some additional costs associated with that.

Correct.... MTD (Making tax digital)

Correctish MTD currently only applies to VAT and only comes in to play if your annual turnover goes over the VAT threshold (about £85k from memory), if you are under that then you can be registered for vat and continue to post manually

even if you go over you CAN still used excel spreadsheets but you have to use approved posting software which posts the figures directly from your excel spreadsheet.

 

[julianf]

I'll be under the vat threshold.

As my work is mainly labor, and mainly for non vat registered customers, I would never volunteer for vat registration.

 

[bigegg]

I'll be under the vat threshold.

As my work is mainly labor, and mainly for non vat registered customers, I would never volunteer for vat registration.

rent?
petrol?

probably not, and I assume you've done your sums.

 

[bigegg]

Correctish MTD currently only applies to VAT and only comes in to play if your annual turnover goes over the VAT threshold (about £85k from memory), if you are under that then you can be registered for vat and continue to post manually

even if you go over you CAN still used excel spreadsheets but you have to use approved posting software which posts the figures directly from your excel spreadsheet.

the software is not expensive: around £35 a year to do end of year s/a forms around 2012.
can't imagine it's massively more expensive now.