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Where Taxpayers and Advisers Meet

How much time is involved in doing the adminstration for running a Limited Company pls?

Bizman
Posts: 20
Joined: Sat Oct 21, 2017 9:18 pm

How much time is involved in doing the adminstration for running a Limited Company pls?

Postby Bizman » Thu Mar 15, 2018 6:23 pm

I am thinking of setting up a new, small UK company and was keen to know how much paperwork and administration was involved every year in running a limited company i.e. one registered with Companies House?

The business won't be very big. It will provide consultancy services to other businesses and should "only" involve about twenty payments going into and another fifteen going out of the business bank account every month.

I am already fed-up with adminstration in other parts of my life and so am concerned that the amount of red tape will keep me tied to my computer on Sunday evenings forevermore doing this and that!

HMRC will soon require quarterly filings, as well as the annual paperwork for them, and then there's calculating the income, every single expenditure, all the VAT etc.

I think for such a small company it'll be more efficient and quicker doing it myself than dealing with an external party - an accountant - all the time.

Very approximately, how many hours every month or year does all the admin with Companies House, HMRC etc. take? I appreciate it varies from business to business.

Your advice would be most welcome! Thank you.

bd6759
Posts: 3109
Joined: Sat Feb 01, 2014 3:26 pm

Re: How much time is involved in doing the adminstration for running a Limited Company pls?

Postby bd6759 » Thu Mar 15, 2018 6:34 pm

All the details you have mentioned relate to running a busienss. You wouo dneed to do them whether the busienss was run by a compamy or by yourself as self employed.

If you form a company, the company must submit acounts and a n annual sttament to companies house. Aslo, because the trade and the income belongs to the company, you will need to record every transaction between yourself and company, particularly how you take money from it. This might have the addtional PAYE regulatory matters (which you will need if it is your only source and you want to keep your NIC record up to date).

If it is a small business, using a company is not necessary and is not cost efficient.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: How much time is involved in doing the adminstration for running a Limited Company pls?

Postby GlobalTaxAdviser » Sat Mar 17, 2018 1:12 pm

With software automation, it will not take much time at all especially for a consultancy business even with making tax digital which maybe two years away for you unless you are VAT Registered.

Good time is to start now with software and get on the learning curve.

Bizman
Posts: 20
Joined: Sat Oct 21, 2017 9:18 pm

Re: How much time is involved in doing the adminstration for running a Limited Company pls?

Postby Bizman » Sun Mar 18, 2018 7:37 pm

Thanks very much for sharing your thoughts.

Does anybody have anything more tangible please? Does it take 5 hours a week, 10 hours a week etc.?

Everybody advertises everything is easy and simple, until it is actually done. For instance, in my repeated experience HMRC don't even pick up the phone unless you wait at least 30 minutes.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: How much time is involved in doing the adminstration for running a Limited Company pls?

Postby GlobalTaxAdviser » Mon Mar 19, 2018 12:09 pm

I am not sure anyone can tell you how long it will take and will depend on so many other factors.

The book-keeping is the easy part but other parts may not be so easy ie Annual Account and Corporation Tax. In addition knowing how to optimise the tax side.

I would suggest if you are not comfortable then to engage an accountant

Bizman
Posts: 20
Joined: Sat Oct 21, 2017 9:18 pm

Re: How much time is involved in doing the adminstration for running a Limited Company pls?

Postby Bizman » Sun Mar 25, 2018 10:28 pm

Thank you.


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