Method Accounting
Method Accounting

Key Guidance

Setting up in business –  accounting guide

Choosing a Company Name – Each limited company must have a name and this name must not already exist. You can call your private company whatever you wish as long as you adhere to certain rules. If you would like some help when it comes to choosing a company name then please do not hesitate to get in touch with our customer relations team who will be able to assist you with this.
Directors Responsibilities – The tasks and responsibilities and liabilities that directors face are demanding and need to be understood and complied with. It is imperative that all directors understand these roles and responsibilities. The Companies Act 2006 codified the duties of company directors into a statutory statement of seven general duties. In addition to business and financial issues, directors are subject to a wide range of regulation and legislation. This includes the Insolvency Act 1986, the Company Directors Disqualification Act 1986, the Health and Safety at Work Act 1974 and the Corporate Manslaughter and Corporate Homicide Act 2007, and also issues relating to corporate governance, corporate social responsibility and corporate ethics. If you would like further information on this then please do not hesitate to contact us.
Business Bank Accounts – The financial affairs of your company are separate and distinct from your own. In order to receive money from customers and to pay for purchases and expenses, your company will require a business bank account which will be central to its trading activity. Virtually all UK banks, certainly all high street banks, offer business banking services with online and telephone banking access.

Switching Accountants

Are you a Limited company, business or sole trader? Switching your accountant to one of our simple and easy packages is a hassle free experience. With three simple all-inclusive packages to choose from, Method Accounting offers a specialist service with first class customer service. All of our packages guarantee a ‘same day’ response to enquiries, giving you peace of mind and support at all times. Our industry leading cloud based accountancy system gives you maximum accessibility 24/7, wherever you are and again is included within all our packages. Does your current accountant really understand your business and give you the support you need? We believe we provide the best service and support from specialist advisors and we look forward to welcoming you to Method Accounting.

Taking money out of company

Paying Yourself – The three primary ways of getting money out of the company are: 1) Expenses, 2) Salary and 3) Dividends.
Salary – If you would like to become an employee of your own limited company then you can be paid a salary via payroll. A salary paid is a tax deductible expenses to the company and, so long as it exceeds the NI earnings limited can entitle you to state benefits.
Expenses – Mileage, rail fares, stationary, client entertainment, rent, telephone bill… A company incurs lots of costs, or expenses, running a business. Some business expenses will be paid for directly from the company’s own bank account. Other expenses will be paid for personally by you, to be reimbursed by the company.
Dividends – Once a company has paid all its expenses, including purchases, fees, employee salaries, director fees and any tax liabilities, the amount left over (the residual amount) can be returned (distributed) to the shareholders. The amount distributed to the shareholders is a dividend.

Legal considerations

Company Accounting Made Easy – Today’s accountant is as interested in the people who run the businesses which generate the numbers as they are in the numbers themselves.
Value Added Tax – Value added tax, or VAT, is a tax which is charged on most goods and services sold or provided by a business.
IR35 at a Glance – IR35, also known as the Intermediaries Legislation, is concerned with employment status (employed or self-employed) for tax and National Insurance purposes. Please refer to our dedicated IR35 page for further guidance.

Other

Additional Shareholders  – The owners of a company are its shareholders. It’s likely a company will be incorporated with you as the sole shareholder. As such any dividends will be paid to you; income tax payable on the dividend income will be your personal responsibility.
CDD Requirements – As with all professional firms, we must carry out identity verification checks prior to providing any services. This is so we comply with Money Laundering Regulations 2007, the Proceeds of Crime Act 2002 and the Terrorism Act 2000. Client Due Diligence procedures (known as CDD), involves the identification of our clients, confirming their address and the ongoing monitoring of business activities.

Your Own Accounting Portal

Our industry leading cloud based accounting system provided by FreeAgent helps with all your book-keeping and financial records. The portal gives maximum accessibility on your laptop, tablet or mobile wherever you are 24/7.