In a lot of bother!

Ltd_Company_advice

Hi,

I need a lot of advice and pretty quick although I'm not expecting the advice to be good for me I need it.

I currently do contract IT work through my own Limited company. I am trying to work out how I go about paying my taxes? Obviously it's due to be submitted by the end of January but I'm completely confused on what I need to do?

And also I think I will have enough money to pay any tax bills but what happens if you are slightly short?

Many thanks everyone.

Ltd_Company_advice

I meant to say I don't have an accountant as I feel as though I can do it myself. My contract pay and expenses aren't particulary complicated. I get paid a set amount a day and I only claim my travel expenses.

missile

I believe you must have an accountant to submit returns for a limited company.

chrismac1

"Obviously it's due to be submitted by the end of January."

Your PERSONAL tax return is due by 31 Jan 2011, but this may not be very exciting. there may well be no income tax to pay, if so there will be no fines to pay either even if it is late.

Your COMPANY tax return will be due NINE MONTHS after the year-end of the company, along with any tax arising. This in my view does need a professional accountant unless you are fully up to speed on the Companies Act 2006. PM me if you need more info.

Mikeyorks

Ltd_Company_advice wrote: »

I meant to say I don't have an accountant as I feel as though I can do it myself. .

Your 1st post disagrees with you?

heretolearn_2

In one moment you say you don't know what to do, then you say you don't want an accountant as you can do it yourself. To be honest, with a Ltd company, I'd always recommend using an accountant unless you are experienced in tax/accounts yourself.

As well as the two tax returns mentioned above, do you know you also have to submit accounts and an annual return to companies house.

An accountant's fee is tax deductible as an expense and could save you a lot in penalty fees and extra tax if you get something wrong/late.

Murdina

Just to back up heretolearn, how have you been taking money out of the company? Does it actually have its own bank account? Do you run a payroll for yourself and do you know about the tax return deadlines for that?

Have you drawn dividends? Do you know how to check you have sufficient reserves to do this and how to document it?

Are you aware of the 25% additional corporation tax charge on a company if a director just draws money out of it without it being salary, dividends or repayment of capital introduced?

If all of the above is baffling please try and find an accountant asap (which may not be easy at this time of year!)

antrobus

missile wrote: »

I believe you must have an accountant to submit returns for a limited company.

Your belief is not accurate.

antrobus

You can do it all yourself. You can complete your own corporate tax returns. You can prepare your own accounts that comply with the Companies Act 2006. On the other hand, I wouldn't recommend that anyone do it unless they are convinced that they know what they are doing. The fact that you have posted a thread under the title 'In a lot of bother!' which begins with the phrase "I need a lot of advice" would suggest that you don't. So I'd suggest you go and find an accountant.

heretolearn_2

Yes, agree with anrobus that accounts and tax returns don't HAVE to be done by an accountant.

It's one thing if you have an accounting/financial background (one of our clients does much of his own work and does bookkeeping for other companies despite having zero accounting qualifications, but he has years of practical experience and does an excellent job), but otherwise you are being a bit foolish just 'having a bash' at something you don't understand.

metso

Hi,
Funnily enough I was in exactly the same position as you last week. last week i was concerned about my tax returns and considering the possibility of doing it myself. Yesterday i went to see an accountant and today all my worries and concerns are gone. Yes a little lighter in the pocket for doing so, but he also saved me a lot more money than i would have saved if i did it myself. And thats not including the fines i could have got for submitting an incorrect tax return.

I would higly recommend getting an accountant, if you really are trying to save money you can do so by being prepared and do as much book keeping as possible. Creating a profit and loss summary. Etc etc...

But do yourself a favor and get your self an accountant. The money he charges, you'll write of as tax anyway and would amount to what you would have paid in Ni contributions.

Good luck and happy new year...
Metso...