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Help! :scared:

 

I'm in the process of putting together my first annual return for Companies House

and I'm having a problem with what should be reported under 'Cost of Sale/Service'.

 

To get my Gross profit I need to take away the cost of the service from my total income.

 

I have done a very high-level intro to accounting and thought I had a handle on this

(well I did during the course! :zzz: ) but now don't know what I should include!

 

Anyone been through this before and provide a steer, I'd be grateful.

 

My second problem relates to what should be included in Capital share. As a 'poor' one-man band

I didn't have any initial capital of my own to invest in the business, so used a small

business loan to get off the ground and upgrade my kit.

 

I did have some basic kit and plenty of CDs to get me started - would/should this be recorded

as 'Capital Share'? Again any help would be appreciated.

 

I thought limiting my liabilities as a Limited company would be advantageous, but this paperwork

is making me think again. Maybe Sole trader would have been better :aa

 

:thanks:

 

Kev

Roadies Disco

 

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I can't help with the financial side - if you don't get much joy here, then find a moderated Google Group (or a dedicated business forum).

 

I'm not convinced of the need to go Ltd for most DJ's. Unless you're dealing with other companies which may prefer dealing with a Ltd company, OR there is high borrowing (ie buying stock/capex etc), there should be very little liability on the sole trader/partnership.

 

This can be reduced by having adequate PLI, and taking sensible precautions (written and signed contracts, terms checked by a solititor)

 

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I can't help with the financial side - if you don't get much joy here, then find a moderated Google Group (or a dedicated business forum).

 

I'm not convinced of the need to go Ltd for most DJ's. Unless you're dealing with other companies which may prefer dealing with a Ltd company, OR there is high borrowing (ie buying stock/capex etc), there should be very little liability on the sole trader/partnership.

 

This can be reduced by having adequate PLI, and taking sensible precautions (written and signed contracts, terms checked by a solititor)

 

Cheers

 

With hindsight I'd totally agree. I have more than adequate PLI through DJ Associates.

Sort of steered down the wrong route, I think!

 

Will check out other business forums.

 

Thanks again

 

Kev

 

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Why not have a free chat with a registered accountant?

 

On the same wavelength!

 

Just identified someone quite local to me, so will go and have a word.

 

Cheers

 

Kev

 

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Was badly advised to go Ltd myself, I finally let it go a couple of months ago... (Web development side of things).

 

Cheers,

 

David

DJ David Graham

Tel: 01204 537716 / 01942 418415

Email: hello@djgraham.co.uk

FB: http://facebook.com/djdavidgraham

Web: [under construction - it really is coming soon :)]

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Was badly advised to go Ltd myself, I finally let it go a couple of months ago... (Web development side of things).

 

Cheers,

 

David

 

Going Ltd make be good for some businesses, and in this day of virtual secretaries, its often hard to know if a company is very small, or a larger concern (without checking company financials and/or face to face meetings).

 

One of my suppliers for the day job used a virtual secretary, and after a meeting was shocked to find he was in a small rented office and it was all a front.

Wasn't a problem - and was impressed how it all worked.

I've since found out our IT consultant uses a similar service.

 

Going a bit OT - I've been considering my long-term plans recently, and I know Carmen is also not happy at work. As anything we do would probably be B2B, I would expect to go Ltd.

No firm plans as yet though - but my employer is now pretty ruthless on letting people go, so trying to keep my options open..

 

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Going Ltd make be good for some businesses, and in this day of virtual secretaries, its often hard to know if a company is very small, or a larger concern (without checking company financials and/or face to face meetings).

 

One of my suppliers for the day job used a virtual secretary, and after a meeting was shocked to find he was in a small rented office and it was all a front.

Wasn't a problem - and was impressed how it all worked.

I've since found out our IT consultant uses a similar service.

 

Going a bit OT - I've been considering my long-term plans recently, and I know Carmen is also not happy at work. As anything we do would probably be B2B, I would expect to go Ltd.

No firm plans as yet though - but my employer is now pretty ruthless on letting people go, so trying to keep my options open..

 

Sounds as if Ltd could be the right choice for you, particularly if two of you are involved.

 

But for me, part-time and struggling to find gigs. The pain is certainly outweighing the

gain at the moment! :crap:

 

Cheers

 

Kev

 

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Definitely go talk to an accountant.

 

Capital investment need only be £1. Your business loan has nothing to do with the share value. It's only worth increasing the capital if you plan on selling shares in the future. You can always increase the number of shares at a later date.

 

With the help of an accountant you can probably offset costs against your profits that you never even realised you could. A percentage of your home (office - although watch out for your domestic rates), furniture, electricity, travel, cothing, cleaning, memberships, depreciation of your equipment ... there's loads.

 

The issue with going Ltd is more to do with being a sole trader there may not be an advantage (this is not advice by the way) as the government has reduced loopholes of sole traders going Ltd.

 

Friends of mine claim absolutely everything and leave it to the accountant to reject. They claim all their restaurant bills (management meetings), holidays (fact finding trips), building maintenance on their houses (as that's where they are based). Many receipts get put through anyway to see if the VAT man rejects them and 8/10 they get passed, more because they are below the radar rather than it is legitimate. There's nothing illegal in this as the onus is on the Government to reject. They don't get fined or imprisoned, they just have to adjust their figures for dissallowed expenses.

 

Get an accountant that specialises in small businesses. I have found the self employed specialists to be the best as they are the cheapest and they keep your business by saving you money. The big ones with offices and partnerhips are more worried about paying their own bills.

 

:joe:

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