Saturday, September 7, 2013
Do I have to get my Limited Company Accounts Audited?
Do I have to get my Limited Company Accounts Audited?
I am going to start a UK Private Limited Company for a little web venture I have. We will make (much, much) less than 1m so would be classed as "small". The main cost seems to be in accounting as we would be able to do our own accounts, but I believe we would have to get them audited at the end of the year which would cost about £1000. If we are only a small company making a few thousand a year, so we still have to get provide audited accounts, just because we are a LTD? Thanks!
Small Business - 3 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
you most certainly will have to get them aduited, a small company can still fiddle the tax man.
Answer 2 :
No, beacuse your turnover is less than £6.5m and your balance sheet would be less than £3.26m you qualify as a small company for audit exemption purposes. You can also file abbreviated accounts which means you don't have to have so much detailed infornmation which is open to the public (and your competition if you have any) since company accounts are published by companies house. You will need - year end accounts compiling, a company tax return completed, a company return to companies house, and the shareholders will need to include the income they recieve on their personal tax returns. My advice would be don't try to do it all yourself as you may actually lose money iff you don't take advantage of the tax savings you may be able to make. However you may be best not to use an Accountant as they charge the earth, use a book-keeper who is clued up on taxation (like me for example). I charge £120 for year end accounts, £40 for company tax returns, £40 for personal tax returns http://www.businesslink.gov.uk/static/html/detail-2387.html http://www.businesslink.gov.uk/static/html/layer-565.html
Answer 3 :
No, an accountant will produce a set of accounts for you, they do not need auditing, they can be restricted to directors declarations. It will probably cost nearer 4-500 depending how much information you give the accountant to work from.
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