Whether you're experienced at running a limited company or have just formed your company there are certain key requirements to running a limited company and using your Crunch account effectively.
We advise checking out our handy tutorial videos that will teach you the basics so you can hit the ground running.
Initial Setting Up
We’ve already set up your Crunch Account with your key company details, some of which you can see by clicking on the ‘Your Crunch’ tab and navigating to ‘Company Profile’.
Now there are a few things you need to do.
Step 1: Set up your bank accounts, clients and suppliers.
You will need to add your company bank accounts details including bank statements and credit cards, having done this you will then need to add your clients and suppliers.
Step 2: Enter previous transactional information
If you have newly formed your company you would have undoubtedly incurred some formation costs which you can now account for. Find out how.
Or, if you are an existing company (formed for a while or have finalised a year end before starting to use Crunch) you may have previous invoices and expenses to account for. Find ou ___________________________________________________________________
Managing your company accounts
Creating and issuing invoices:
You will need to create and issue an invoice for work you’ve carried out and can post or send a pdf copy via email direct to your client. You can also create and issue recurring invoices to save you having to key in the same information repeatedly. If you contract through an agency and complete time sheets, you will still need to represent this in your account using invoices.
Recording clients payments:
When a client pays you for work you’ve carried out you will need to record this and match the payment to an invoice.
If you incur business expenses in the course of your work you will need to record these. Expenses can help to reduce your tax bill (see how) and may reduce your VAT liability. You can also record a recurring expense which saves you the time of inputting the same expense repeatedly. We have provided a detailed break down of what expenses you can claim and how they are recorded in your Crunch Account.
You may wish to use our Snap phone app that allows you to add expenses on the go by taking photos of your receipts. To find out more and activate Snap navigate to the ‘Your Crunch’ tab then ‘Subscription’ and follow the instructions.
As a director you can pay yourself from your company via a salary and/or dividend payment. You will always need to record any monetary withdrawals made to you personally from your company’s bank account/s.
RTI stands for Real Time Information and HMRC requires all companies to provide details of employee payroll (this includes yourself as a director) electronically on or before the date of payment regardless of whether salary is taken.
So every time you make a salary payment you need to record it as a payroll run and Crunch will file this information with HMRC.
As most clients will likely take the same amount of salary each month, you may choose to set up a recurring payroll to avoid having to create a payroll each month. Before you decide what salary to take, read up on making your salary tax efficient.
As a director any other benefits you receive from the company personally are called benefits in kind and once a year you are required to let HMRC know what these were. You do this by filing a P11D and P11D(b) which we will ask you to approve and submit for filing to HMRC from your Crunch Account after the 5th April each year.
Submitting your VAT returns:
If you are VAT registered you are required to file a VAT return, as well as pay the VAT payment due directly to HMRC.
VAT returns are generated in your account under the “Tax” tab and you will need to agree and make the VAT submission every quarter by clicking the "Submit return". Always make sure your invoice and expenses are up to date before you submit them. You will be notified as to the amount of VAT you owe, it remains your responsibility to pay this to HMRC.
One of the key activities you should always do on a regular basis is ensure your bank statements match your accounting records. This will allow you to check you are recording your transactions accurately, and will therefore be able to see the financial position of your company. Bank reconciliation must be completed before we can finalise your company’s year end accounts, and helps us greatly when giving advice on your account and transactions.
You can manage this process under the ‘Banking’ tab.
You may wish to use our BankBolt service which provides an automatic upload of your bank statements from your bank into your Crunch account, ready for reconciliation.To find out more and to activate BankBolt navigate to the ‘Your Crunch’ tab then ‘Subscription’ and follow the instructions. Currently the service is available for Cater Allen, Barclays and Metro Bank customers only.
Your company’s Year End Accounts:
When your company’s Year End comes around we will notify you and ask that you get your Crunch Account up to date, if it isn’t already. This includes having all your bank accounts fully reconciled.
To check your company’s Year End status you can simply navigate to the ‘Accounting’ tab and select the ‘Year End’ section.
Once up to date our accountants can then produce your Year End financial statements and make them available for you to approve before filing them with Companies House and HMRC.
Your company’s CT600 Corporation Tax Return:
Once we have produced your Year End financial statements and you have approved them we will confirm to you how much Corporation Tax your company is liable for. This is the amount you need to pay directly to HMRC.
At any time you can check your company's tax liability on the 'Pay Yourself' dashboard.
Your company’s Annual Returns:
Once a year a company is required to file an Annual Return with Companies House.
Crunch Basic clients can pay a one-off fee of £13 for us to complete your Annual Return for you. Crunch Plus and Premium clients are entitled to one Self Assessment for one director every 12 months.
It is your responsibility to inform Crunch of any relevant shareholding, directorship, address changes etc. throughout the year so that these details can be included on the return.
At the end of every tax year (5th April) you will need to carry out a Self-Assessment Tax Return, also known as Personal Tax return, to declare exactly how much you have earned through your Limited Company (and / or elsewhere), and pay anything you may personally owe.
The return needs to be filed by the 31st January following the tax year in question
As part of our service we can register, compile and file your Self Assessment Tax Return, for more information on our prices and this service click here.
Business insurance and IR35 reviews:
Protect yourself professionally with business insurance from Crunch Insurance. Every main exposure is covered, including professional indemnity, public liability and employers’ liability. Find out more about Crunch Insurance.
We can also assess your IR35 status by reviewing your contracts and working practices. With advice from our accountants you'll know whether or not you're 'inside' IR35, and what steps you can take to prevent a HMRC investigation. This review is recommended for freelancers and contractors. Get started with your assessment by calling your Client Manager today.
Watch a short video running through all the basics for using the Crunch App.