Hello - newcomer to Teneric!

[Charlie]

Hi everyone,

I am (surprise, surprise) starting up a new company and would like some info on the immediate duties that need to be done post incorporation. I know that form 88(2) has to be returned to Companies House, but I need to know what other urgent requirements there are. I haven't registered for VAT and am still wondering whether I should voluntarily. Am nervous that I'll get fined before I've had the chance to get going!!

Also, can anyone recommend good accounting software - is SAGE the best?

Thanks very much - any info is greatly appreciated.

Charlie

[MikeH]

Hi and welcome to the forum Charlie.

Why do you need to file an 88(2) at Companies House? Are you issueing more shares already?

There are very few things to do after incorporation. The Inland revenue will contact you via your registered office, so simply reply to their letter.

VAT registration - Do not rush into this without considering the consequences. You may put your prices up for your customers if they are not VAT registered. You have to register when turnover is expected to reach £60 per annum.

Accounting software. Most people are split between Quickbooks and Sage. We use QB but whatever you do get your accountant to help set it up if you are unsure what to do.

If you need any more advice just drop it in this thread or send me a PM. Alternatively give me a call, our freephone is on our site.

Mike.

[BMS]

Hi Charlie and welcome to the forum.

As MikeH says there is no need to dive into VAT registration as it really depends on the type of business that you have and the customers that you hope to have.

Have you set the company up yet as you normally have the option if issuing shares at that stage.

With regards to software again QB and Sage seem to be the market standards but unlike MIkeH we use Sage !

Please feel free to take a look at our website and by all means PM me if you want any more advice.

If you tell us a little bit about your company and this may help us to give more specific advice over the forum.

Good Luck with the new venture.

[Charlie]

Hello,

Thank you for your replies, I am grateful for any help. No, I haven't registered the company yet mainly because I feel so scared of running my own business!

I think I must have got into a bit of a muddle with this area then. I thought that you had to send off the 88(2) to confirm the number of shares issued as stated on the Memorandum - from your reply, Mike, I guess this is wrong!! On the subject of shares, I was wondering if you thought it best to allot myself 2 shares and the other director 1 so that I can have more control if ever there is a dispute or do you think that it is ok to initally allot 1 each and perhaps issue myself some more later?

I expect my output tax to be more than my input tax, and don't expect to reach the threshold very quickly, so I didn't think it would be wise to register. Am I right?!

Thanks very much for your advice. It's brilliant to talk to others, hopefully I'll learn quickly and can give some advice as well.

Charlie

[MikeH]

If you do decide to go for a limited company then use a formation agent. That is not a sales pitch (use whoever you like), but a fact that we are faster, cheaper and easier than doing it yourself. Your share allocation is declared to Companies House electronically (in the M&A) as with all other details.

An LTD will help define ownership. So yes structure this to give you a majority holding if necessary. However will your co-director be happy about this? It will also affect dividend payments unless a second class of shares is introduced for paying dividends. So consider the issues of control, voting rights, and profit distribution.

VAT - Firstly do you need to claim back VAT from suppliers? If registered for VAT you can claim back any VAT you pay to your suppliers. This may be of great benefit if your general purchases will be from VAT registered business that will charge you VAT.

Secondly, who are your customers? If your customers are VAT registered then they will be able to claim back any VAT that you add to the total cost of the goods or service you supply to them. However, if your customers are not registered for VAT or are the general public then you will effectively increase your prices by up to 17.5%. If you operate in a price competitive market then this may be detrimental to your business.

It is important to weigh up the balance between who you buy goods and services from and who you will sell them on to. Therefore, be careful when considering VAT application.

Glad to be of help.

Mike.

[BMS]

Hi Charlie

Not sure if you have two threads going or I have lost the plot ....anyway

As Mike says VAT registration is a big issue for new start-ups, if your customers are VAT registered and you have low input tax then it may be worth considering flat rate registration. That way if your turnover does go over £60K then your customers will be used to paying VAT.

There are also advantages in flat rate registration in some circumstatnece.

Send me a PM if you want advice.