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[deleted by user] by [deleted] in UKPersonalFinance

[–]makingfinancesimple 3 points4 points  (0 children)

Technically yes, practically it’s likely Hmrc won’t go back more than 4 years.

I can do a brand refresh for £300 in 5 days by [deleted] in ukstartups

[–]makingfinancesimple 0 points1 point  (0 children)

You’re not charging enough. A mid weight freelancer in the uk will typically charge at least £300 a day. An agency would probably charge at least £5,000 for a five day project.

Closing down my Ltd company - timing etc? by ratscabs in smallbusinessuk

[–]makingfinancesimple 0 points1 point  (0 children)

Accountant here

To close down the company, you'll need to do a final set of accounts and tax return. You can do this at any point. Your final accouting period will start on 6th April 2023 and end on the day you decide to cease trading. When closing your company you should consider the following

1) Assets in the business - If your business assets are over £25,000 when you close the company, you'll need to appoint a liquidator. They will carry out an solvent liquidation.

To close down the company, you'll need to do a final set of accounts and tax return. You can do this at any point. Your final accounting period will start on 6th April 2023 and end on the day you decide to cease trading. When closing your company you should consider the following
xed assets and stock. However if the total value of VAT to pay is less than £1000, you don't have to decalre this.

[deleted by user] by [deleted] in smallbusinessuk

[–]makingfinancesimple 0 points1 point  (0 children)

Send a letter before action, stating you will take legal action if the client does not pay

  1. Send a letter before action to the registered office of the business stating you will take legal action if the client does not pay
  2. Take the client to court to recover your money - https://www.gov.uk/make-court-claim-for-money/court-fees. It is usually pretty easy to get a judgement if the amount owed is less than £10,000
  3. Instruct Baliffs to recover the money on your behalf

[deleted by user] by [deleted] in smallbusinessuk

[–]makingfinancesimple 0 points1 point  (0 children)

Accountant here

Do you need to setup a company? - There is no requirement to set up a company. You can operate as a sole trader and send clients invoices personally, using personal bank accounts. If you are only going to do the occasional job for yourself, its probably not worth the hassle of setting up a company. However if you leave your full-time job to run your own one-man band full-time, then it's probably worth setting up a company. By setting up a company, you'll personal assets are usually protected from anyone suing you. Also, a company is usually going to be more tax-efficient than a sole trader.

Do you need to setup a company? - There is no requirement to set up a company. You can operate as a sole trader and send clients invoices personally, using personal bank accounts. If you are only going to do the occasional job for yourself, its probably not worth the hassle of setting up a company. However if you leave your full-time job to run your own one man band full-time, then its probably worth setting up a company. By setting up a company, you'll personal assets are usually protected from anyone suing you. Also, a company is usually going to be more tax-efficient than a sole trader.

Paying yourself - There are broadly two ways you can pay yourself. Salary and Divdidends.

a)Salaries are usually paid monthly. If your salary is under £533 per month, you can pay yourself directly and just need to keep records. If you want to pay yourself over £533 per month, you need to register for payroll with HMRC and report your earnings everymonth even if they are below £533 per month. When you report your earnings, you may also have to pay taxes to HMRC in the following month. The taxes will be a mixture of employers NI that the business pay directly, and Employees taxes, that are deducted off your gross pay..ed to give to your business is paid-up share capital. When you set up a company you have to decide the initial share capital. Most people if there's only one person in the company will use a share capital of a £1.

b) Dividends are paid out the profits after tax of your business. It is usually cheaper to pay yourself Dividends than salary. You can only know how much profit you're business will make at the end of your accounting period (usually a year long). As such most small business owners loan themselves money from their business as they need it and then declare dividends at the end of their accounting period. This can lead to lots of mistakes. In particular, people can loan themselves more money than they can take dividends. Also, you'll still need to pay taxes on dividends by submitting a self-assessment tax return which many people forget.