One of the most commonly asked questions by a limited company owner or those thinking about forming, is "Should I appoint an accountant?” Though it isn’t compulsory to have an accountant, they can help you set up your company and guide you through the often mind boggling first few months of company ownership by advising on share structures, registering your company VAT and setting your company up for Corporation Tax and ensuring your company is always operating as tax efficiently as possible.

If you do decide to operate as a limited company there will be about 10/20 minutes of paperwork a month. Whereas if you chose you to work through an umbrella company, as you would be an employee of the umbrella company, so they would take care of all your taxation needs, If you are unsure if you should setup a Limited company, please read our Limited vs Umbrella guide. As a limited company owner here are some benefits to hiring an accountant:

  • You can focus solely on the contracted work
  • We can form your limited company – If you appoint Nixon Williams as your accountants we will do this free of charge.
  • Communicate with the relevant authorities i.e. HMRC and Companies House
  • Help set up a business bank account
  • Completion of your end of year accounts
  • Provide on-going advice including tax planning opportunities
  • Advise on claiming expenses
  • VAT calculations

A good accountant will not only help you with structuring your company in the most tax efficient way but, also completing all your personal and business taxation needs such as end of year accounts, dividend administration and VAT returns. Below is a more detailed explanation of exactly what an accountant can do for you.

 making contracting

Year End Accounts

This is one of the most important times of the year for limited companies, where the majority of the work is done; your accountant will be completing the following:

  • Issue and file of P14’s/P60, P35, P11d and P11d(b)
  • Reconcile your ban accountants
  • Prepare for filing of annual accounts and corporation tax returns with HMRC
  • Companies House annual return

Company Set Up

If you have chosen to form your own limited company with us, we register and form your company for you, which does include the VAT flat rate scheme, corporation tax, PAYE registration at companies house. Nixon Williams also offer the points below:

  • Opening a business bank account with Metro Bank
  • Communicating with the relevant authorities
  • Insurance with a third party
  • Dedicated accountant

Nixon Williams can offer this service and more for just £95+VAT and you can find out more through our Starting Out as a Contractor page. Having an accountant can make the process so much smoother and also provide you with peace of mind.

Payroll Administration

  • Monthly payroll calculation and payslip
  • Calculate and advise on PAYE & NIC
  • Submission of End of Year Declaration
  • P60, P11d, P45 and P11d(b) forms

A good accountant can advise you on PAYE, P60 and many other aspects of payroll. Most of the time this only applies if and or when you have an employee of your limited company, however if you are the sole director of the limited company you would pay yourself a salary and then dividends, as and when if the profit was available.

VAT and PAYE Returns

  • VAT registration
  • Advice on registering for the Flat Rate VAT scheme
  • Quarterly VAT calculations
  • Quarterly PAYE payments
  • On-going advice

Personal Taxation

  • The Nixon Williams Vantage app displays when you have a return coming up within the next 3 months.
  • Personal tax return for one director only (if received by 30th September)
  • Unlimited telephone and email support for all your accounting questions
  • Your own dedicated accountant including their direct telephone number and email address
  • Unlimited telephone and email support
  • Ongoing bookkeeping or access to our online portal, Vantage
  • Nixon Williams will act as an intermediary between you and all HM Revenue and Customs correspondence and contact with regards to VAT, PAYE and other tax related issues.
  • To ensure that these mandatory returns are completed on time the accountant will pro-actively chase information needed from the client.

 

In the long term, appointing an accountant can give you more freedom than if you were to complete the administration work by yourself. It also makes the process run smoothly and it becomes less stressful.Nixon Williams can offer you this for a fixed monthly fee of only £95+ VAT a month. To appoint Nixon Williams as your accountants or if you have any questions about contracting, please call our New Business Team on 01253 362062 or email jacqui.fairbrother@nixonwilliams.com