Limited Company Checklist
OK, this will be an ongoing post which I’m updating as I go along after starting up my new LTD company (TYNEWEARTECH LTD) giving advice for anyone else wanting to go the same route as I did without going self employed. Personally speaking I should really have gone self-employed and then did a self-assessment each year until I was fully established. I however wanted the company number so I could come across as more professional in image. I also wanted the company to be separate to keep my accounting simpler.
If there are errors found in this document, please feel free to highlight them to me. I am not an accountant I am a first time business owner. This is something I’m using to advice for questions and confusing things I encountered when I was first registering the business starting up
There are companies which do this all for you for around £125, and to be fair, the headache I had it’s probably an option if you have the money. I wanted to do it with as little as possible however so did everything myself.
Things you should consider as part of a Limited Company Checklist when you are starting up and the reasons why I consider them: – I have also listed the order I’d personally do them. So everything is setup (before hand)
- Accounts & Finances
- Business Insurance
- Financial Software
- Business Incorporation
- Companies House Registration
- Corporation Tax Registration
- PAYE for Employers Registation
With social media popular these days and all the rage, have you thought about consistent branding. It makes it easier for your customers to find you if all your pages had the same name. It took me a while to find the business name I wanted. I originally had another name planned, but the domain name was taken, so had to adapt and improvise until I finally settled on one.
You need to consider your business model, I didn’t personally want to have a lot of social media pages as I have a business to run, but I wanted enough social networks so that I could get adequate coverage. In the end I settled for social network branding pages covering what I deemed the important sites and ones which I would be using the most.
(Youtube, Facebook, Twitter, Gmail, Google+, eBay, Amazon)
I didn’t bother registering my domain name against a .com address, since I am UK based I have no interest for commercial branding. Although I may secure the domain for a later date. I made sure these were all available at first, by using sites which can check for branding across multiple networks. You can find these at sites such as knowem.com username checkers
1b) Business Incorporation
The first thing you will need to do when you register a limited company before you can start trading is register you business name with companies house this is so you are officially recognised as a company and will be treat as such. It also does a couple of additional things which are required for the business. When your business is being registered, you need to provide a one time payment fee of £15 to companies house to start-up your business. After you have successfully met all the requirements for starting up a business. When you have filled in your company date it will be submitted to HMRC. After a few days, you will receive a confirmation the business has been registered with them giving you details of your date of incorporation and also your all important company number
1c/1d) Corporation TAX and PAYE for Employers Registration
The problem you have when you are a limited company; is that you can’t just withdraw money from a business bank account and pay yourself when you feel like it as you could when self employed. When self employed it’s easy, all you do is a basic self-assessment every year showing your income / outgoings and as long as it’s listed properly it’s OK.
When you start up a LTD company, the business is a seperate entity. Which means even if you are a single person company, you have to register for TAX/PAYE because you need to pay yourself as an employee of your own company.
There are multiple methods to do this, I won’t go into detail in the exact steps but make good use of the GOV.UK website because it gives you all the information you need when doing so. Basically you log in and tick the check boxes for services you want.
Once your information is submitted, you will then be sent two letters within 10 days
CT41G -This contains your company UTR code (needed for Corporation Tax)
HMRC PAYE Form – This contains your payroll code to pay employees
You can’t do one without the other, once you have both, you can supply information to your payroll software and then generate payslips / make payments to your employees via RTI submissions.
- Activation Code (PAYE for Employers) – you will need to logon to Government Gateway to activate your PAYE service, other wise you will need to re register again. It uses the same details as the HMRC information
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