PLC and Contracting

[craig-A]

I'm after a bit of advice from the p/h masses.
I've recently started a contracting role and, accordingly, I've set up a plc. The advice from my accountant is that I need to try and keep my business account and personal accounts separate. This means setting up another account.
Does the new account need to be a business account and does it need to bear the name of the plc?

Thanks in advance

C.

[essayer]

Yes, company name.

It's your company's money, not yours - always remember that!!

PS it's Ltd, not Plc. Unless you are very confident!!

[Simpo Two]

Yes, it would be extremely shabby to have a Company's financial affairs mixed in with your grocery bills and other personal ephemera. You and the Company are separate legal entities.

Does your accountant know you run a PLC...?

[craig-A]

Simpo Two said:

Yes, it would be extremely shabby to have a Company's financial affairs mixed in with your grocery bills and other personal ephemera. You and the Company are separate legal entities.

Does your accountant know you run a PLC...?

indeed it should be Ltd co, not plc.
I normally hit things with a hammer for a living, all this business lark is a bit of a mine field at the min......

[PurpleMoonlight]

craig-A said:

indeed it should be Ltd co, not plc.
I normally hit things with a hammer for a living, all this business lark is a bit of a mine field at the min......

Then perhaps it's not they way for you to go ...

[Ozzie Osmond]

You MUST keep the company completely separate and fully documented - otherwise HMRC will eat you alive.

Have a look at the software packages available to keep track of the company accounts/books (such as "QuickBooks") and make sure you operate a completely separate company bank account. Essentially your Bank Statements + QuickBooks = Job Done.

Depending on your business type and turnover you may well need to register for VAT. Which is another adventure with HMRC.

[Simpo Two]

craig-A said:

I normally hit things with a hammer for a living, all this business lark is a bit of a mine field at the min......

But it is worth taking a moment to get your head around the basics or you could get in a mess later.

My view is that (unless you plan on screwing up and need to hide) you don't need to incorporate for tax purposes until you're making a profit of around £40Kpa. VAT registration is compulsory at about the £70K turnover pa mark (someone will give you the exact figure), but you can register before that if it's in your advantage.

Meantime, keep hitting things with a hammer and getting invoices out

PS You don't even need special software, just a cashbook and pen if you want to keep it simple.

[Eric Mc]

NOBODY should embark on operating through a limited company without knowing inn advance what the regulatory and tax requirements will be.

[williaa68]

Eric Mc said:

NOBODY should embark on operating through a limited company without knowing inn advance what the regulatory and tax requirements will be.

If anyone happens to have an idiots guide I for one would be very interested in reading it.....

[Lauryn]

Simpo Two said:

But it is worth taking a moment to get your head around the basics or you could get in a mess later.

My view is that (unless you plan on screwing up and need to hide) you don't need to incorporate for tax purposes until you're making a profit of around £40Kpa. VAT registration is compulsory at about the £70K turnover pa mark (someone will give you the exact figure), but you can register before that if it's in your advantage.

Meantime, keep hitting things with a hammer and getting invoices out

PS You don't even need special software, just a cashbook and pen if you want to keep it simple.

VAT registration is currently compulsory for taxable supplies in excess of £82,000 pa.