When To Engage an Accountant?

djp64

I run a small business 'manufacturing' goods to order. I have a limited company and for the past 5 years have completed HMRC Corporation Tax returns and Companies House returns without any problems. The accounts are relatively easy in as much as I don't have works in progress, stock etc and I have a small number of capital assets that I depreciate.
The business has grown over these 5 years and I'm now at the stage where the business generates more profit than I can pay myself and not have to pay tax as an employee. The fixed costs / overheads are pretty small so the business is cash rich.

Whilst I could look up the process for paying dividends etc to maximise my 'tax free' withdrawals / earnings from the business I'm inclining towards engaging an accountant to do this for me. I also have a couple of probably daft questions I'd like to ask e.g. I now have a reasonable cash balance. Once I've completed the accounts and paid corporation tax on the years profits how can I (in a personal capacity) withdraw some of this cash balance having already used up my personal tax allowance. I'd prefer not to pay tax twice if there is a legitimate way to arrange the company's finances.

Would an accountant be willing to assist with this sort of thing without wanting to take over all the accounting / returns etc. Is it reasonable to ask an accountant to do this without having 'control' of the returns and accounts?

How do I best find an accountant who is more small business focused?

Any advice / guidance / thoughts would be appreciated.

Debbie

paddyrg

This is what accountants do, so much as your clients pay you to be a specialist in your field, you can get a specialist in their field. They can certainly help with tax planning and it's probably worth checking your previous returns were all correct lest you find you've actually got a massive tax bill owing. As for drawing on company money you can take a dividend. It is taxed twice, but at the appropriate tax rates for corporation tax and dividend, adding up to more or less the same as PAYE anyway.

Pennywise

This is bread & butter work for any typical accountancy practice. No, they won't insist on them doing the accounts/tax preparation and submission, but if there's little chance of long term regular work, they'll almost certainly charge you by the hour for this kind of advice so be upfront with them what you want to discuss and make sure you get a quote of their fee. (This kind of advice is usually a freebie when a client is using the accountant for the regular year end work!)