Accountant for new small business?

[Ding Dong !]

Once you approach the threshold, is there anything to stop you creating a new company to split your turnover between?

I don't know to be honest with you. How that would stack up with the Inland Revenue I'm not so sure. I think i'd just register and be done with it.

 

[ILOVEBHA]

Once you approach the threshold, is there anything to stop you creating a new company to split your turnover between?

It is not cheap creating a new company and all the extra administration would not be worth the effort also there is the problem with associates for VAT purposes make it impossible if you are a sole trader but limited companies may be possible if the shareholdings are different and places of trade different.
Why are people so worried about VAT registration.The benefits truly outweigh any negatives.

 

[Ding Dong !]

Why are people so worried about VAT registration.The benefits truly outweigh any negatives.

In what way would it be more beneficial ? Obviously I could claim back all the VAT on my materials etc but other than that what other benefits would it bring me ? I am a sole trader BTW.

 

[ILOVEBHA]

There are many benefits other than the obvious ones about reclaiming all expenses etc.
Firstly we have noticed that many of our clients once they become registered seem to get more business as a result because they look more professional as you are registered and less likely to dissapear really helps in the building trade.
The second and best benefit is that so many of our clients when they start to reach the £68,000 limit start to panic and underprice jobs,do cash jobs or even not take on jobs as they are so scared but if they just continued trading as normal and not worried they would earn more money in the long run and if you are trading really close to the limits then eventually you will need to register anyway so why avoid the inevitable.

 

[The Large One]

Lucraft Hodgson & Dawes, 19 New Road. Very good, been with them 10 years.

http://www.lucrafts.co.uk/

Maurice Dawes used to do my accounts years ago, bloody nice fella, and super sharp. He used to sit with a couple of large stopclocks on his desk, just to be exact on his times for each client..and woe betide you if he found you'd taken a car home for the weekend for non work purposes..'That will have to go on your P11D David...'

My first job after leaving school was working for Maurice Dawes back in the mid-late 80s when he had a publishing firm in the same building as his accountancy practice opposite St Peter's Church in the middle of Brighton.

He was super-sharp. I think he used to advise the government on tax issues.

I certainly remember the stopclocks.

 

[Stoichkov]

Cheers NSC - plenty of good info there and some useful PM's

Nice one!