How much does it cost to form a limited company?
If you are to appoint us as your accountants, we charge £120 for private company formations. This normally includes at least some preliminary discussions and advice about the necessary decisions involved. Forming your own company without preliminary advice is not to be recommended. Why not take advantage of our free initial consultation?

Why have I not received a Tax Return?
The majority of taxpayers in the UK do not receive a Return. Tax is deducted at source from their income and there is no necessity for a return. If you are self employed or are a Company Director then you should receive a Return. You should also receive a Return if your tax affairs are more complex than normal; perhaps for example, you are a higher rate taxpayer or have income which has not been taxed at source. Please remember it is your responsibility to tell the Inland Revenue about any new sources of income. You must not just wait until the Revenue catch up with you.

How do I know whether to operate as a Sole Trader or Limited Company?
Quite a simple question, but the answer is much more complex. There is a multitude of factors to be taken into account and we could take up the whole of the Website in giving an answer. Anyone asking this question is in a position where they should obtain individual advice based on their particular circumstances. Remember this is one of the reasons you need an accountant; to help you with this kind of decision. Why not call us to arrange a free initial consultation?

I use my own car on company business. Is there anything I should be doing?
Yes, you should keep a detailed log of the mileage incurred for business travel. If your employer pays you a mileage allowance this will be tax free, so long as the amounts do not exceed Inland Revenue Authorised Rates. If your employer pays less than the Authorised Rates or pays nothing at all, you should be able to claim tax relief on the shortfall.

I've just become self-employed. What should I do?
You must be registered with the Inland Revenue as self-employed. There is a deadline for this - you should be registered by the end of the third month following the month in which you first became self-employed. If you fail to register on time, there is a penalty of £100. See an accountant; he will arrange for your registration and you should also get some useful advice.

© Majors, Chartered Accountants, 2001;  Updated 21 April 2001;  Reviewed 25 April 2002