micro-entity company

[wightbees]

I'm a sole trader at present but have been looking at setting up as a company. I have come across running the company as a micro-entity.
I know I could get a accountant but I do my own accounts as a sole trader, would these new accounts as a company under micro-entity be very difficult?
Anyone here have experience of micro-entity accounts?

 

[alldigging]

https://www.gov.uk/government/publi...company-part-1-accounts#micro-entity-accounts

"If you think your company qualifies as a micro-entity, you may wish to consult a professional accountant before you prepare micro-entity accounts"

 

[justsmith]

The accounts they want for micro entitys are not hard to make.

The rough problems i know of for micro entities would not apply to you i guess but a lot of companys will not offer them credit so you have to pay up front, also the accounts they ask for are not that usfull for future planing e.g. if x happens i will lose money.

The other things which would apply are the normal effects of a ltd company e.g. the company would be a legal entity with it's own rights and you need to look at a company bank account.

 

[Poly Hive]

When we were trading with the guest house we had a very poor accountant. Then by sheer luck we found an excellent one and she saved us some very serious money, in the tens of thousands.

FWIW employ a good accountant, it will pay for it's self.

PH

 

[Popparand]

As a former accountant and company director............

There is no such thing as a micro entity company, just companies unless you really are aiming at being a big business.

Company registration is simple and quick and you can do it on line. You have to file accounts and submit other periodic returns but these are quite straight forward.

Companies House has introduced simplified forms of accounts returns. The rules and limits are quite straightforward, and explained on the Companies House website.

The simpler forms of accounts (which would apply to you I suspect) are very limited and easy to complete on line - just a very basic balance sheet.

You will have to open a separate bank account for the limited company. However, you can carry on using your existing trading name (***Ltd trading as yyy.)

HMRC will contact you to confirm when you need to file a tax return for the co.

You should include the name of your limited company and it's registered address on all invoices etc. (inc your website if you have one). Your registered address can be your home address unless you have any objection. You are likely to get junk mail from local accountants, estate agents etc but we all get that anyway.

Hope this helps.

 

[wightbees]

Very helpful Pop: ) It sounds similar to filing accounts as sole trader on line. I will look into it a bit more though.

 

[Karol]

Just be wary of running your business from your home because if you expense parts of your home within your business then you may be liable for tax if you subsequently sell your home.

 

[colinc]

If listing from home make sure it doesn’t contravene any planning restrictions too.


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[Stiffy]

When we were trading with the guest house we had a very poor accountant. Then by sheer luck we found an excellent one and she saved us some very serious money, in the tens of thousands.

FWIW employ a good accountant, it will pay for it's self.

PH

We run our very small honey business using an accountant. We were also lucky and on a friends recommendation found one that is excellent. Yes, they charge for their time but they have advised how to trim down the information required, which saved us a lot of money, they also save us tax, which more than pays their fees. What's most important for us, we also know that all is in order if HMRC comes knocking.
S

 

[B+.]

Yes, they charge for their time but they have advised how to trim down the information required, which saved us a lot of money,

I was recently asked to advise on the purchase of a business. The "accounts" were clearly the product of a computer program (which I am familiar with) and a little book-keeping knowledge. There were huge errors in the accounts which made it clear to me that no accountant had ever reviewed them. I advised against buying the business and my client walked away from the opportunity.
As with all areas of expertise, you are not just paying for the work they do, but the knowledge/experience that underpins it.

 

[Marton]

As I understand it the BBKA insurance only applies to “natural persons” ie sole traders not companies.


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[Hivemaker.]

As I understand it the BBKA insurance only applies to “natural persons” ie sole traders not companies.

Does this also mean that unnatural/artificial persons are not allowed to be members of the bbka?

 

[Stiffy]

Does this also mean that unnatural/artificial persons are not allowed to be members of the bbka?

That would exclude most beekeepers as they are difinatley an ‘Unatural’ bunch !
S

 

[Marton]

Does this also mean that unnatural/artificial persons are not allowed to be members of the bbka?

One may wonder.

More seriously the phrase is, I am informed, one that distinguishes the legal entity of a human from that of a corporate.

As members of associations which make up the BBKA they must be natural. As to unnatural I dare not wonder.

If the insurance is extinguished it may be significant.


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[For want of a better word]

Does this also mean that unnatural/artificial persons are not allowed to be members of the bbka?

You can always join as a "County" member... just the magazine and no frills.

I would put accountants in the same category as solicitors and estate agents... from bitter experience!

Quick Books recommended.

Yeghes da

 

[Popparand]

bbka

If you are worried about the bbka, you could always retain ownership of the hives and rent them to your limited company. If that isn't enough you could enter into a service contract with the co. So the co sells the honey, and pays you as a consultant and rental for hives.... oh my, the possibilities are endless!