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Find the right accountancy solution for your requirements

If you are considering forming a Limited Company you already know that there are a few slight downsides to being your own boss and working through your own limited company means more administration than working as a sole trader. Although the Advantages of Going Limited out way the disadvantages of going limited, it’s still probably best to know what challenges my lye ahead. Find below a review of some of the most commonly mentioned issues:

It is more costly to start up as you will have to pay to form a limited company.

There is a certain amount of paperwork involved, usually about 10 – 15 minutes per month – To be honest there isn’t that much more paperwork than working as a sole trader but you’re accountancy fees will increase slightly as you’ll need to fill annual accounts. However, hiring a good accountant will help with the admin side and of course be on hand to help with any additional questions. A good suggestion is to choose an accountant who doesn’t charge by the minute/hour but instead charges a fixed monthly fee with unlimited access to your accountant. This means you can ask as many questions you like without fear of being charged any extra, this is particularly important when first going limited as you’re bound to have lots of questions.

You have to file your accounts at Companies House each year, which will be on public record. Your accountant will handle this for you.

You have to file accounts, company tax and corporation tax calculations with HM Revenue and Customs every year. Again your accountant will manage this for you.

Accountancy fees are generally more expensive, but then again your accountant will be doing more work plus as any accountant will tell you – going limited is one of the most tax efficient ways of working, so with any luck you will also be paying a lower percentage of tax.

If you’re income is less than £20,000 a year, it maybe best to stay as a sole trader. However, it would certainly be worth contacting an accountant and asking them for their advice.

If your still not convinced that going Limited may be for you and that it may just be too complicated, visit the following pages that will help give you some helpful information on some of the areas you may have been wary about:

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