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0845 834 0269

Head Office

0203 318 3024

info@123contracting.co.uk

The information every
freelance contractor
needs to know!

What is included as standard for a fixed fee of £65.00 + vat per month:

Full Contracting health check - is your business performing as best it could - we'll ensure it is.

If you're new to freelance contracting, we'll ensure you start trading in the right way.

Then you can sit back and relax, your ongoing HMRC & Companies House compliance will be taken care of.

The 123 Way - simple & stress-free.

The 123 Way

The 123 Guides

Limited Company Accounts

Business Structure Review

A Limited Company must prepare a set of financial accounts each year to submit to various authorities. It is the responsibility of the company directors to ensure this is done and filed within the appropriate deadline.

What do Limited Company Accounts contain?

Director's Statement

A set of company accounts will contain a statement from the directors, stating that the accounts show a true and fair picture of the Limited Company. This must be signed by the directors.

Profit & Loss

They will show a Profit and Loss Statement which starts with the turnover of the company (money coming in from clients), minus all expenses, giving you the profit or loss for the year. This is kind of a review of how well your business has done. What your company owes in Corporation Tax will be worked out from the profit.

Balance Sheet

There is a Balance Sheet, this shows what the business owns and owes at the point in time when the accounts were prepared. It will state how much money is in your company bank account, the value of any assets that the company has bought and paid for, e.g. computers, machinery, and cars. It will also show the value of all liabilities, e.g. overdrafts, money you may owe to suppliers at that point in time, your Corporation Tax liability and so on.

What happens to the accounts?

The accounts are submitted to Companies House within 9 months of your company's year end. These go onto the public record for anyone to see.

They are then sent along with your company's Corporation Tax return to HMRC. This must take place within 12 months of your company's year end.

There are fines and penalties in place for filing late.

This is a simple introduction to what Limited Company accounts contain and why they have to be prepared. There are literally thousands of accountancy and taxation rules that apply when preparing a set of Limited Company accounts and fines and penalties in place if you make a mistake - DIY Limited Company accounts are not a great idea.

Running a Limited Company

Director's Responsibilities

Company Bank Account

Payroll

Salary

Dividends

Limited Company Accounts

Corporation Tax

VAT - The Basics

VAT - The Choices

123 Income Illustrator

The 123 Income Illustrator shows you what you can expect to take home from a given contract.

It also compares the differences between freelance contracting through your own Limited Company, through an Umbrella Company, as a Sole Trader or if you were to return to full time employment.

The123 Income Illustrator

Invoicing

Expenses

Expenses - Detailed Guide P1

Expenses - Detailed Guide P2

IR35

IR35 - Detailed Guide P1

IR35 - Detailed Guide P2

Company Secretarial

123 Referral

We run a simple referral programme where for every client you refer to The 123 Way we will give you £123.00

For more information check out the link below:

123 Referral

Personal Tax

Importance of Information

Important Dates

Being a Sole Trader

Calculators

FAQs

Disclaimer:
This information is for general information only. No responsibility is taken for any action taken or refrained from in consequence of its contents. Always seek professional advice before acting.