Limited company formation checklist

Setting up a limited company is exciting, but it can also be nerve-wracking. You will have a range of responsibilities such as registering with Companies House and starting a company bank account. While none of these things are difficult on their own, it can seem like a mountain to climb when you’re new to this way of working. With the help of a specialist contractor accountant, you can ensure everything is done compliantly and your systems and processes are set up in a way that is easy to manage – to give you a headstart from the word go.

To start with, knowing that you have a clear understanding of what money you’ll need, how working this way will impact your pension, the savings you have in place – as well as having a backup plan for your finances – will give you a big boost in confidence.

To help get you on your journey, here are some of the basic accountancy tasks you need to set up to start with:

Once you’re all set up with the items above, it’s best to keep on top of your finances by dedicating around 20 minutes per week to record-keeping. Here’s a list of some of the jobs you need to do, and how often you’ll normally need to attend to them.

Weekly tasks will include things like invoicing your clients/recruitment agency. You’ll also need to check your bank statements and keep accurate records of allowable business expenses (filing receipts for safe-keeping).

Once a quarter, you’ll need to submit a VAT return (if you’re VAT registered) and pay your Employers’ and Employees’ National Insurance and PAYE (if your pay level requires it). You should also create an updated P&L Statement and spend time analysing this against the previous quarter’s.

Annually, you will also need to submit an Annual Report to Companies House as well as year-end accountants to HMRC. You’ll also need to create a P&L Statement for the year and analyse this against that of the previous fiscal year.

When considering contracting through your own limited company, it’s important to seek specialist accountancy advice to check that this is the right route for you – as well as so you can get support with your company formation and ongoing financial management.