Limited Company Services >

How it Works >

The service we provide involves the use of e-mail, online web forms, telephone discussions and personal meetings.  We believe that a variety of means of communication and working will lead to a more efficient service.  Our Limited company services include:

  • The setting up of a new Limited company to your specification - be it a brand new company or an off-the-shelf company.  Simply complete the online form to provide us with the information necessary to set up your Ltd company.

  • Notification to the Registrar of Companies of the first accounting date.

  • Completion of your “Corporation tax – New Companies information” sheet – CT41-G, which will arrive at the registered office address about a week after formation of your company

  • Notification to the Registrar of the Registered Office address.

  • Application to be VAT registered.

  • Application to be VAT registered on the VAT Flat Rate Scheme if your expected annual turnover is less than £150,000 and you do not expect to have a lot of reclaimable VAT

  • Review of your clients - to check whether they are VAT registered businesses (this applies to both current clients and also potential future clients).

  • Application to H.M. Revenue & Customs to operate a PAYE scheme.

  • Assistance in opening a Company bank account – we provide this service for free if you want an HSBC business bank account. Should you require an alternative bank account, we can assist you with opening the bank account, but a separate fee of £80 + VAT applies upon successfully opening the bank account.

  • Submission of quarterly VAT returns within 30 days of each quarter end.

  • Quarterly update of your cash book – including analysis of your accrued corporation tax to date and the amount of cash you can remove from your company bank account to spend as you wish.

  • Monthly payslips submitted to clients online, and quarterly PAYE/NI returns and completion of quarterly P32 report.

  • Preparation of the yearly P35, P14, P60`s relating to the PAYE scheme and due to be filed with HMRC by 19 May each year.

  • Preparation of annual accounts ready for submission to Companies House and the Taxation Authorities.

  • Preparation of annual Corporation tax return. This involves completion of the company corporation tax computation, the completion of the statutory CT600 form and submission of annual accounts to HMRC.

  • Arrange for audit of accounts if required – this service is required by some contractors who may wish their accounts to be audited for the purposes of their tier 1 application to the Border and Immigration Agency.

  • For an additional fee, we can provide you with a comprehensive IR35 contract review service. For more details on this service, please click here.

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What do you do? >

Use our pro forma invoice template to record details of hours worked and to generate your sales invoices for your agency/client:

  • complete our online expenses template (this should be completed at least once every quarter - to tie in with your VAT quarter end). 

    The online expenses template can either be submitted to us via e mail to contractorservices@mggrouplondon.co.uk or can be accessed via the “MG Client Interface” link on the mgcontractorservices.co.uk home page. 

    You are therefore guaranteed that your data and information is being transferred in a safe and secure environment.

  • Submit your bank statements to us on a monthly or quarterly basis so that we can update your company cash book – and use this information to prepare your quarterly VAT returns and ultimately your annual accounts and corporation tax return.

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Fee Structure >

£130 plus VAT per month for our fully comprehensive service including taxation advice on how to legally minimise your taxation costs.  For details of the services included in our complete package, please click here to access our Gold service fees PDF document.

We also offer an “internet only” service for a fee of £100 + VAT per month.  This is a medium level of service which would suit someone who has standard transactions each month and who is happy to liaise with us via e mail and through the website only.  Under this package there are additional fees charged for telephone calls and meetings with the contractor services team.  The additional fees are £50 + VAT per hour for telephone calls (pro rated for shorter calls) and £80 + VAT for face-to-face meetings with a member of the Contractor Services team.  For details of this service, please click here to access our Silver service fees PDF document.

Some clients will only require year end services for their Ltd company.  This will typically mean completion of annual accounts and their corporation tax return.  We offer a bronze service with services provided for a specific task, such as completion of statutory accounts, or completion of a personal tax return.  The operation and fees for this service are shown in the Bronze service PDF document, please click here to access our Bronze service fees PDF document.

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Salary & Dividends >

We will generate electronic payslips for your company on a monthly basis.  We will also generate dividend vouchers with our accountants stamp on the document.  The dividend vouchers are needed to substantiate earnings for Tier 1, Tier 2 purposes and also for completion of your personal tax return at the year end.

Please see the attached PDF document for information on how we calculate your salary, dividends and treatment of your Directors’ current account [click here for pdf doc]

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PAYE >

We will generate a salary schedule for you to show the level of income that you will draw each month by way of salary. As part of this process we will discuss IR35 to see whether the legislation applies or not to you.

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VAT >

For companies with turnover in excess of £67,000 (2008/2009) you will have to register for VAT. In our experience even those companies with a turnover below this threshold tend to consider voluntary registration due to the potential gains available by reclaiming VATable expenses under the normal VAT scheme and due to the difference in rate between collection of VAT and payment of VAT under the Flat Rate scheme,

We will determine at the outset whether your company should be on the VAT Flat Rate Scheme, traditional scheme, or perhaps not VAT registered.  This will depend on the personal circumstances of your company.
 
Why consider the VAT Flat Rate Scheme?

An example of the flat rate scheme may show why –

Example            £100,000 annual turnover
                        £17,500 VAT charged and collected
                        ------------
                        £117,500 total revenue for the year
                        -------------
                        X 12% FRS rate (this is the rate for IT Contractors in their first 12 months of VAT registration)
                        -------------
                        £14,100 payable to HMRC
                        -------------
                        £3,400 (£17,500 - £14,100) remains within the business which you effectively get to keep – although you will be subject to corporation tax on this profit of £3,400.

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Claining Expenses >

There are lots of myths regarding what types of expenses a Ltd contractor company can and cannot claim.  We ensure that you only claim expenses that are legitimately allowed in your company depending on your particular circumstances.  We believe that this is the best policy in the long term in order to avoid HMRC enquiries and investigations into the operation of your Limited company.

There are a wide range of expenses that a business can legitimately claim.  Please see the attached PDF document for details of the types of expenses that can be claimed when you complete the expenses spreadsheet.

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Corporation Tax >

Your Limited company will be subject to Corporation tax.  The tax rate was 20% for small companies with profits less than £300,000 but this has been increased to 21% for the period from 1 April 2008.  From 1 April 2009 the tax rate for small companies will increase by a further one percentage point to 22%.

All companies are required to submit a corporation tax computation and corporation tax return (CT600) once a year to HMRC.  We will ensure that your tax return is completed in plenty of time and explain the basis of the calculation and the amount of tax you have to pay. 

Corporation tax is only payable 9 months after the end of the accounting period, but we will provide you with a quarterly update on the amount of corporation tax accruing to your company.  This will ensure that there are no surprises after the end of the financial year regarding the amount of tax that is due to be paid to HMRC.

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Company Accounts and Statutory Work >

From the minute that you engage our services we are thinking of ways to deal with all business areas with the minimum of hassle for you. For example you do have to hold an AGM, but we immediately conduct a special resolution for you agreeing that these are not necessary for your business.

You do have to file Annual accounts and Annual returns which we take care of for you, which covers all your legal requirements.

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