What do you wish you'd known before setting up your Limited Company ❓

Fortune_Smiles

uknick said:

At the very basic level get your financial accounting period, that is the year end, right for you from the start.  We have had clients who come to us after registering with Companies House and take the default year end given to them.

For instance, one client registered in August and was given a year end of 31 August.  They then realised it was better for them to have a 31 March year end to tally with the personal tax year.  You can amend it later at Companies House, but why not think about it before you register.
   

Thank you @uknick - that's a very good point.  We're choosing an accountant at the moment so will add it to my list of questions for them.

Fortune x

FFHillbilly

uknick said:

At the very basic level get your financial accounting period, that is the year end, right for you from the start.  We have had clients who come to us after registering with Companies House and take the default year end given to them.

For instance, one client registered in August and was given a year end of 31 August.  They then realised it was better for them to have a 31 March year end to tally with the personal tax year.  You can amend it later at Companies House, but why not think about it before you register.
   

why does it make a difference? mine ends in November.

uknick

FFHillbilly said:

uknick said:

At the very basic level get your financial accounting period, that is the year end, right for you from the start.  We have had clients who come to us after registering with Companies House and take the default year end given to them.

For instance, one client registered in August and was given a year end of 31 August.  They then realised it was better for them to have a 31 March year end to tally with the personal tax year.  You can amend it later at Companies House, but why not think about it before you register.
   

why does it make a difference? mine ends in November.

As I said some like to match their personal tax year.  Wouldn't bother me but everybody's different.

bizhelp

You get £300 of 'trivial benefits' per year as an allowed expense - as long as it's split into max £50 lots. E.g. 6 £50 John Lewis vouchers.

 

Annual £150 per person allowance for company events e.g. Christmas party.

 

Annual health check e.g. from Bupa also an allowed expense.

A good accountant can literally save you thousands, put a good amount of time and research into finding that good accountant.

jamest88

What I would do differently:
- shop around for an accountant before signing up. The difference in prices is crazy
- set the business address at my accountants (lots of accountants offer this service) then you are completely separated from your company and family life. Just in case any angry customers get any ideas.
- use xero or quick books for quick reconciliation
- online banks such as monzo and mettle are great for keeping an eye on spending. They also integrate well with accounting software 
- try not to expect to know everything and be an expert in everything before starting. The best way to learn is by doing.
- chat gpt is great for questions of how to run your business. Double check the result is up to date