How much admin. involved in running a Ltd Company?

Savvy_Sue

janesmith wrote: »

Actually, thinking about it, as business bank accounts incur various charges, it'd be cheaper if I just opened a different personal bank account and then used that for my (low-volume) business transactions. At least then my transactions will be separate from my personal ones, but I won't be paying business banking fees. Is that workable?

it's probably workable, although it may be against the T&C of the bank. However, for low volume self-employment as a sole trader, there's an argument which says that it's just like having your salary paid in each month, except that your salary varies.

Yes, if you're opening an account for a limited company, the bank will want to see proof. But if you go to any bank they will have a 'business' account offering for non-limited companies. Some of them offer a free first year.

I would definitely agree that a separate account is worthwhile!

FatVonD

I've had a personal bank account in the past as a sole trader that was 'name name trading as company name'.

00ec25

janesmith wrote: »

Actually, thinking about it, as business bank accounts incur various charges, it'd be cheaper if I just opened a different personal bank account and then used that for my (low-volume) business transactions. At least then my transactions will be separate from my personal ones, but I won't be paying business banking fees. Is that workable?

Cheers.

have a read of the MSE guide to business bank accounts

https://www.moneysavingexpert.com/banking/small-business

however, I would much rather see you opening a separate account (even if it costs you some fees) because it is vital to develop the discipline that the money in the bank is the business', until such time as you need it for personal purposes. That way the discipline comes of drawing money out whilst being conscious of: can the business afford to pay that now? Yes of course you are working to make money, and yes it is your money which you have to have to live on, but at the same time you want the business to be sustainable.

Also will help if/when you go limited as it is then vital to remember the company money is not yours until you pay it to yourself as a salary and/or dividend. Far too often I see people with massive loan accounts where they have taken money out of a company willy nilly and then protest to me when presented with the s455 tax bill for an unpaid director's loan they "forgot" about

fishybusiness

Re bank accounts, probably worthwhile having a look at which banks are likely to go the distance in your area.

They seem to be closing smaller branches at an alarming rate - I started at HSBC, moved due to closure, then Natwest, recently moved again due to closure to Llloyds, who seem to be the 'last bank standing' where I live.

Pennywise

fishybusiness wrote: »

Re bank accounts, probably worthwhile having a look at which banks are likely to go the distance in your area.

They seem to be closing smaller branches at an alarming rate - I started at HSBC, moved due to closure, then Natwest, recently moved again due to closure to Llloyds, who seem to be the 'last bank standing' where I live.

Depends if the OP needs a physical bank branch. If there's cash involved, a number of banks now provide for cash to be paid in at a post office. I've had business and personal accounts with Santander for over 20 years but never once have I gone in to any of their branches - I do it all online and pay in any cheques by post by handing over an envelope in a post office.

janesmith

Pennywise wrote: »

Depends if the OP needs a physical bank branch. If there's cash involved, a number of banks now provide for cash to be paid in at a post office. I've had business and personal accounts with Santander for over 20 years but never once have I gone in to any of their branches - I do it all online and pay in any cheques by post by handing over an envelope in a post office.

Thank you for all the wonderful advice in this thread.

I very much like using a physical bank branch.

Can't stand using the Post Office for banking. Long queues, only one or two counters out of five are ever open, and the staff struggle to handle anything beyond the most basic tasks.

ThemeOne

Pennywise wrote: »

I've had bad experiences with garages - does that mean I should service my own car?

I've had a bad plumber - should I change my own boiler next time?

It depends what you're comfortable with Pennywise, and whether you have the qualifications to stay within the law.

If you want to get others to do every single thing for you, there are always plenty who will oblige - you could probably even get an electrician to change a light bulb.

I don't service my own car because I have no idea how to do it, no interest in learning and I don't feel I would have the aptitude. I can't replace my own boiler because I'm not GasSafe registered.

But doing accounts for a small limited company involves skills such as reading, writing and arithmetic which I managed to master at a young age, and can still miraculously perform. Plus there is no legislation saying I cannot do the work. In addition, the work is broadly within my comfort zone so I am happy to do it, save some money, learn about how company administration works and feel more in control of my own business.

My main message to the OP is don't assume this work is difficult just because professionals offer to do it for you. It isn't. It may still not be your thing though, but whatever you decide best of luck with your venture.

jshm2

Well.. depending on the size of the customer base and how much you're invoicing Quickbooks or Xero would automate a lot of the "admin" involved.

moongarden

Check out Waveapps.com - one of my clients uses it and raves about it. I've tried it out and am thinking of using it for invoicing only

lavandergirl_2

Check Pandle as it is free.