Freelancers' Questions: How to run my limited company account?
Freelancer’s Question: I have registered a UK limited company with a company formation service for web design consultancy, but have declined their request of £500+ to manage my accounts. At the moment, I can’t afford this sum.
In April/May, I have to present my first accounting period yet am unsure where to start with getting my tax affairs in order for this deadline. I want to retain the company but admit that I do not feel on top of my obligations to HM Revenue & Customs. Fortunately, I do have all my invoices and expenses for the year, so how should I proceed?
Expert’s Answer: A summary of what accounts need to be filed with whom and when is available through the Companies House and HMRC websites, but it sounds like you already know when you’re next filing responsibility falls due.
Ultimately, you should seek the help of your accountant, or enlist one, because the task of single-handedly pulling together all of your figures for the year can be challenging.
Moreover, bear in mind that £500 is not actually a large sum for limited company accounts. Therefore, and in light of your circumstances, I would recommend that you go with the company formation agent who will be able to do the all the necessary accounting work for you, at least for your first, fast-approaching deadline.
The Expert’s Answer is based on the comments of Emily Coltman, chief accountant at FreeAgent, an online provider of accountancy software to freelancers.
28th February 2013