Business bank accounts

[Supersuperleeds]

I won't have any employees. I have 4 bikes and a car already. I expect quite a lot of my work will be home based, although I may need to go to employer offices

Can private healthcare be covered at all? Costs me £180 a month and rising! I do get my money's worth (un)fortunately!

Private health can indeed be paid for by your company, however you will need to do a P11d at the tax year end declaring it as a benefit in kind, you will pay tax on the benefit in kind and the company will have to pay 13.8% class 1A national insurance, but it is all tax deductible for the company and since I think you said you are a higher taxpayer you will see some saving.

Forgot to say, the company also has to do a P11d(b) but both forms are very very easy to do (five minute job at the most)

 

[SpokeyDokey]

How much do you proportion to private use? Do you claim this as a capitol cost or one on which you claim depreciaton allowance. I am interested as I have been self employed for 40 years and have never claimed tax relief on such items.

Do you use an accountant?

 

[Supersuperleeds]

How much do you proportion to private use? Do you claim this as a capitol cost or one on which you claim depreciaton allowance. I am interested as I have been self employed for 40 years and have never claimed tax relief on such items.

If the company buys then you don't need to worry about private use. The accountant "should" treat it as a capital item and then you get an allowance in the tax return. Though there will be 100% allowances on some items, I'm not a corporation tax expert so not sure if computer equipment attracts 100% allowance still (they did at one point.)

I say "should" treat it as capital, because if it, by accident, got written off in the P&L and wasn't spotted it would be fully deductible

 

[bikingdad90]

The bit in bold isn't strictly true. If @vickster pays herself regularly and through a payroll (i.e. attracts PAYE) then the directorship is effectively ignored and the NI is only on the pay in the period. The easy way to do this is set yourself a salary that your company can afford to pay and if you have a load of work and need the money either pay a bonus or a dividend (get advice on which is the best to do)

Yes if you get a monthly salary it makes no difference but say if you pay yourself nothing for 11 months and then a years salary in month 12 you get 12 months NI free allowance as a director underPAYE.

As an employee under PAYE you only get 1/12th so end up paying more NI.
Only the tax is cumulative.

 

[screenman]

Do you use an accountant?

Yep! a very expensive one and they advised me against trying to claim for such things.

 

[SpokeyDokey]

Yep! a very expensive one and they advised me against trying to claim for such things.

That's where I was heading with my question really. I'm never sure of what the situation is on a lot of the things I read about taxation particularly if they have never applied to me.

I don't have an accountants knowledge of tax law etc and in my mind the best route for the OP is to sit down with an accountant who will 100% know what the score is.

 

[phil_hg_uk]

That's where I was heading with my question really. I'm never sure of what the situation is on a lot of the things I read about taxation particularly if they have never applied to me.

I don't have an accountants knowledge of tax law etc and in my mind the best route for the OP is to sit down with an accountant who will 100% know what the score is.

Yeah make sure its an expensive one though it makes all the difference

 

[flake99please]

How are you expecting to be paid/pay for business purchases?

Cash?
Cheque?
Bank Transfer?

Some accounts offer more favourable charges (ie none) for 'online only' transactions.

 

[screenman]

Yeah make sure its an expensive one though it makes all the difference

Do you think I have got it wrong going with a quality company, I know there are many cheaper one's around this area, will they have all the expertise and advice that a larger company can offer me. I am happy to take your expert advice on this, as I did used to use a cheaper accountants but they often proved evasive and hard to contact.

 

[SWSteve]

The Co-op Bank has free banking for FSB members, and a range of tariffs - you might find one to match your needs. They also have solely UK call centres, I don't know if that helps you.

 

[screenman]

The Co-op Bank has free banking for FSB members, and a range of tariffs - you might find one to match your needs. They also have solely UK call centres, I don't know if that helps you.

I bank with the Co-op and have found them easy people to deal with.

 

[phil_hg_uk]

Do you think I have got it wrong going with a quality company, I know there are many cheaper one's around this area, will they have all the expertise and advice that a larger company can offer me. I am happy to take your expert advice on this, as I did used to use a cheaper accountants but they often proved evasive and hard to contact.

I have used the same accountant for 12 years and before that I had another one who was also self employed for about the same length of time. I generate all the invoices, track stock etc & file the VAT on quickbooks, which suits me as I like to know my daily financial position, and he sorts out the tax return and makes any allowances etc because I have no wish to get into all that and he charges me a few hundred pounds a year but saves me over 4 times more than he charges me & I have had zero problems. The problem with a lot accounting firms is that they have far too many overheads and are basically just out to make as much as money as they can but someone who is self employed doing it who knows all the customers personally and isnt just in it for the money is a better bet for me because that is how I run my business. Obviously if I was making hundreds of thousands or even millions and had lots and lots of people working for me I may have a different view but Im not. Obviously this is only my opinion but I have been working like this for a long time and it works for me.

 

[phil_hg_uk]

I bank with the Co-op and have found them easy people to deal with.

Dont the past problems with the co-op bank worry you, I was thinking about swapping over to them just before they had all the problems and I have to say I am glad I didnt in light of that.

 

[screenman]

I have used the same accountant for 12 years and before that I had another one who was also self employed for about the same length of time. I generate all the invoices, track stock etc & file the VAT on quickbooks, which suits me as I like to know my daily financial position, and he sorts out the tax return and makes any allowances etc because I have no wish to get into all that and he charges me a few hundred pounds a year but saves me over 4 times more than he charges me & I have had zero problems. The problem with a lot accounting firms is that they have far too many overheads and are basically just out to make as much as money as they can but someone who is self employed doing it who knows all the customers personally and isnt just in it for the money is a better bet for me because that is how I run my business. Obviously if I was making hundreds of thousands or even millions and had lots and lots of people working for me I may have a different view but Im not. Obviously this is only my opinion but I have been working like this for a long time and it works for me.

That is hugely the point,what works for you. I run Sage and it is up to date every single day, but I like my accountants to check it and do the returns. They charge me £600+VAT for both mine and my wife's business, which are both completely seperate.

 

[screenman]

Dont the past problems with the co-op bank worry you, I was thinking about swapping over to them just before they had all the problems and I have to say I am glad I didnt in light of that.

Not at all, they have been and still are the easiest and nicest bank I have ever dealt with. I have been with Lloyds, HSBC, Nat West and Barclays in the past, we also have accounts with Nationwide which for service in the branch is useless.