The very short answer is, yes! With the right permissions and arrangement, they can, but let’s go into a bit more detail.
When you’re setting up or running a Limited (Ltd) company, there is no legal requirement for you to have an accountant, so you’re perfectly within your rights to complete your annual accounts and company tax returns, and all the other paperwork yourself.
Many businesses realise that there is a lot of moving parts involved in setting up a limited company, which is not restricted to:
- Checking that a Ltd Company is the right option for the business
- Choosing a name that is appropriate, untaken, and meets HMRC standards
- Deciding on Director/s and a Company Secretary
- Identifying who the Shareholders or Guarantors are
- Preparing the documents legally required on the agreement of how the company will be run
- Determining what records need to be kept (and what format they should be created in)
- Completing the registration process
- Managing and maintaining the accounts afterwards
For individuals in the business, their time is better spent working for the company – rather than spending time working on the company – when you think about how much you would pay yourself (whether that’s your hourly or day rate), you really should ask yourself – can the company afford you?
This is especially important if you’re fairly new to the accounting and set-up side of the business, how many hours will it take you to learn, collate, fill-in, and submit everything? That’s time you’re spending not earning money for the company!
The right accountant will help you through the entire process, from the initial consultation (working out if being Ltd is right for you), to the information gathering stages, the paperwork submissions, and then onto the records you need to handle afterwards.
Because although we’re only talking set-up right now, the work involved with your Ltd company and accounts doesn’t stop at registration – there are set dates and deadlines for submission of forms and data, and if you don’t provide these documents in full, on-time, and complete – you’re risking a whole range of penalties, which aren’t limited to just being financial ones.
How Do You Authorise Your Accountant to Set Up a Limited Company?
Before you can get to work, you need to send a Form 64-8 to the Tax Office, this gives specific permission for the accountancy firm / individual named on the form, to handle certain affairs with HMRC on your behalf.
When filling in the form, you’ll need your accountants ‘Agent Code’ and it’s important that you still read everything carefully – because even after they’re working on your behalf, you are still legally responsible for your accounts.
Once the agent has been authorised, they will be able to undertake the registration process with HMRC and Companies House and will advise you on what information they need to get this done.
It’s important that you see to these requests as soon as possible, because there are deadlines involved in the registration process and it must be done within 3 months of the date you started trading; and you need to give your accountant time to prepare the documents, submit them, and have a bit of leeway in case of unexpected issues (such as the Gov Gateway site being down).
What Does Your Accountant Need to Know?
You and your accountant will have a lot to discuss, and it’s likely they’ll have asked you for a lot of information, this is so they can handle all the complicated details, without having to pause and wait for responses to each query.
At a minimum, you’re going to be asked for:
- Company Name and Registration Number
- Registered Office Address (if you’ve not arranged to use the Accountant’s address)
- SAIL address
- Location of Company Records
- Details of Director / Company Secretary
- Information about People of Significant Control (PSC)
- Principle Business Activities
- Trading Status
- Shareholder Information
- Statement of Capital
It’s a lot to take in, and you’re most likely going to want to keep in close contact with your accountant and consult regularly as you work through the process.
Our experts are here to help you get it right – and are highly qualified to set up Ltd companies, as well as LLPs and PLCs too!
So, whether you’re ready to set-up, or are looking for help managing an existing Ltd company, we’ve got all the experience and expertise you need! Get in touch today, and make Your Accountancy, Yorkshire Accountancy!
