How to manage a limited company
As a limited company director, there are a number of legal requirements and responsibilities that you’ll need to perform throughout the year, some of which are ongoing while others are required on an annual basis.
Much of the administrative work required when running a limited company can be time-consuming, however with a dedicated contractor accountant working with you, your returns and all correspondence with Companies House and the HMRC can be efficiently managed, freeing up your time to focus on your business.
- Record keeping – it is a legal requirement for all businesses to ensure accurate records are kept of all invoices, accounts and business expenses. These can be maintained and kept up-to-date through a simple update each month (or as often as you like) with Xero, the online accounting tool that we provide to you as part of our comprehensive package. You can link your bank account feeds to your Xero account to minimise the amount of administration required and we will assist you with any queries you may have on an ongoing basis.
- Monthly invoicing – you will need to invoice your clients for any work completed each month; this can also be managed very simply via the Xero online platform.
- Monthly payroll – this needs to be administered each month and the company must pay any PAYE and national insurance due to HMRC. As part of our comprehensive packages, we will manage your payroll requirements on your behalf each month.
- Correspondence – as part of our comprehensive packages, we will manage all correspondence and paperwork from HMRC and Companies House.
Quarterly requirements & returns:
- Quarterly submission of Accounts – As per new regulations under the Government’s Making Tax Digital legislation, VAT-registered businesses earning above the threshold (£85,000) are required to submit a quarterly return as of 1 April 2019, including your up-to-date income as well as any expenses incurred. This needs to be done through a digital cloud accounting platform such as Xero, a gold partner of Tax Agility. Using Xero, we’re able to prepare your VAT returns and also ensure you are maximising your tax advantages and getting the most take-home pay each month.
- Complete and file Annual Accounts at Companies House.
- Complete and file an Annual Return at Companies House.
- Complete the HMRC Corporation Tax return and inform HMRC of the company’s profit each year.
All the above returns are included in our comprehensive Personalised Package for a fee from £105 per month + VAT.
Finally, all Directors and employees must submit an annual Personal Tax Return to HMRC. We can also complete and submit any Personal Tax Returns for you and your other shareholders (for an additional charge).
If you would like to discuss your options in more detail, please contact us today on 020 8108 0090 for a complimentary no-obligation meeting – this will allow us to explain how we can assist you with all your accounting needs.
Useful pages for contractors:
- Accountants for contractors
- The benefits of contracting
- Contractor companies explained
- Setting up a limited company
- Limited company management
- Choosing the right contractor accountant
- Setting-up and ongoing accounting packages for contractors
- Tax advice for contractors
- Important dates and deadlines for contractors
- IR35 explained