Knowledge Base
Running and controlling a limited company
15 July, 2008
Whilst Trafalgar is on hand to help and assist you in accountancy matters it is important to recognise that you are responsible for running your own business.
A director’s responsibilities in running a company
Contracts/Invoicing
- Contracts / Invoicing
- Negotiating and signing of contracts
- Organising with Agency/Client the procedure for signing off project/work
- Raising invoices to agency/client
Expenses
- Collating and recording business expenses
- Invoicing any ‘client chargeable expenses’ to agency/client
- Retaining expense receipts
Bank Account/Credit Control
- Monitoring and reviewing business bank account
- Chasing agency/client for outstanding payments
- Collating and recording Bank transactions
- Making tax payment provisions
- Remuneration including:
- Validating IR35 status*
- Setting salary
- Setting dividend payments, if appropriate. **
Business Protection
- Take out appropriate business insurances namely:
- Employers and Public Liability
- Professional Indemnity
- Tax Investigation insurance
Returns and Payments
- Approving and Submitting all returns and payments to:
- Companies House
- HM Revenue and Customs
*For every assignment, it is essential to establish the IR35 status before taking any remuneration.
**You may undertake several assignments in a year and it is possible that some contracts may be deemed caught (inside) and others may not be caught (outside) IR35. Whether the contract is inside or outside IR35 dictates whether your company is eligible to pay dividends.