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Accountancy fees for an LLC in the UK

Accountancy fees for an LLC in the UK

Old Mar 9th 2023, 4:26 pm
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Default Re: Accountancy fees for an LLC in the UK

Originally Posted by Expatrick
As I recall, sole traders & partnerships are classed as "self employed" and if solely dependent on one customer are then not, in the eyes of HMRC, truly self employed.In LiW​​​​'s circumstance a limited Company is essential. (I think!).
There are factors personal to each case that don't belong on a public forum, but generally HMRC does not allow the use of a personal service company (one owner/employee) formed solely to circumvent the laws and taxes related to being a direct employee. So I suspect that there is more to LiW's situation than she should share on a public forum.
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Old Mar 9th 2023, 4:27 pm
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Default Re: Accountancy fees for an LLC in the UK

Originally Posted by Pulaski
There are factors personal to each case that don't belong on a public forum, but generally HMRC does not allow the use of a personal service company (one owner/employee) formed solely to circumvent the laws and taxes related to being a direct employee. So I suspect that there is more to LiW's situation than she should share on a public forum.
True!
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Old Mar 9th 2023, 7:05 pm
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Default Re: Accountancy fees for an LLC in the UK

Originally Posted by Pulaski
There are factors personal to each case that don't belong on a public forum, but generally HMRC does not allow the use of a personal service company (one owner/employee) formed solely to circumvent the laws and taxes related to being a direct employee. So I suspect that there is more to LiW's situation than she should share on a public forum.


This. Be reassured that I'm not circumventing anything though.

But what you've all said is helpful anyway.
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Old Mar 14th 2023, 11:30 pm
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Default Re: Accountancy fees for an LLC in the UK

Originally Posted by Lion in Winter
Thanks, both. This all makes sense. I think iti's fair to say that my aptitude for number is 0 so it always takes me a lot longer than it does anyone else. My taxes in the US were simple and I did them no problem. But I'm still a bit at sea here.

Christmasoompa, may I ask how often you vote yourself dividends? Quarterly? Monthly? Don't answer if it's too much personal info of course.
I think this is an issue between you and the accountant. There is an annual dividend exclusion and as far as I know, it covers all dividend payments over the year from all sources. I know for a limited company, technically, dividends can only be paid from earnings and profits.

I agree take out in salary at least up to the personal allowance. As an entity that's just starting out, monitoring this and be prepared to make changes at short notice, or no notice is vital. You may find it necessary to consult with your accountant on a regular or semi regular basis until the foundations are more secure. What about pension contributions?

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Old Mar 15th 2023, 1:29 am
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Default Re: Accountancy fees for an LLC in the UK

You may want the salary to be the National Insurance limit, advice I see is:

"Taking all the above taxes together, in the 2022/23 and 2023/24 tax year, it's usually tax-efficient for most limited company directors to take a monthly salary up to the NI Secondary threshold of £758.33 per month, or £9,100 per year."

You should check with your accountant per advice from Errol.
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Old Mar 15th 2023, 8:36 am
  #21  
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Default Re: Accountancy fees for an LLC in the UK

Originally Posted by Errol
I think this is an issue between you and the accountant. There is an annual dividend exclusion and as far as I know, it covers all dividend payments over the year from all sources. I know for a limited company, technically, dividends can only be paid from earnings and profits.

I agree take out in salary at least up to the personal allowance. As an entity that's just starting out, monitoring this and be prepared to make changes at short notice, or no notice is vital. You may find it necessary to consult with your accountant on a regular or semi regular basis until the foundations are more secure. What about pension contributions?
Originally Posted by tdrinker
You may want the salary to be the National Insurance limit, advice I see is:

"Taking all the above taxes together, in the 2022/23 and 2023/24 tax year, it's usually tax-efficient for most limited company directors to take a monthly salary up to the NI Secondary threshold of £758.33 per month, or £9,100 per year."

You should check with your accountant per advice from Errol.
Thanks both. As you say, I'm working this all out with the accountant. I mostly just wanted to get a sense as to whether what the accountant wzs proposing to charge was reasonable,
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Old Mar 17th 2023, 11:34 am
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Default Re: Accountancy fees for an LLC in the UK

Originally Posted by tdrinker
You may want the salary to be the National Insurance limit, advice I see is:

"Taking all the above taxes together, in the 2022/23 and 2023/24 tax year, it's usually tax-efficient for most limited company directors to take a monthly salary up to the NI Secondary threshold of £758.33 per month, or £9,100 per year."
Or £12570 with Employment Allowance.
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