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Cost of accountancy fees for transferring from Sole Trade to Ltd?

Discussion in 'Money, Accounts & Finance' started by Fray Bentos, Feb 5, 2016.

  1. Fray Bentos

    Fray Bentos

    Jan 20, 2009

    Im currently in the process of getting an Accountant to transfer my business from sole trader status to ltd

    I have done my books myself since the beginning so I have no experience working with accountants

    I have seen 6 different accountancy firms but im still confused as I have been given very different quotes and im not entirely sure if all quotes cover the same services, I have asked for further details but I think there is quite a bit of different overlap with some services and terminology

    What would a rough price I would be looking at to help me complete the whole transfer

    This includes help with the preparation of my sole trade account
    The actual incorporation
    The transfer of balances from the sole trader to limited
    Calculation of goodwill
    Assessment of basis for transfer of trade

    Any advice/help would be most appreciated

    Thankyou in advance
  2. Sc0tty


    Jan 19, 2010
    I did all that myself. I did go on to get an accountant to do my accounts for the limited co.

    Sole trade accounts will be as normal, plus the sale of stock to the business.

    Incorporation can be done for £16 via online websites.

    Transfer of balances. There will be no transfer of balances. The limited co will buy the stock from you, and you can put money into the business if you want. So say you end up using the same bank account (you shouldn't as you will need one in limited co's name) then the balance will become money you put into the business and be accounted for on your directors loan.

    Transfer of goodwill is simply calculated as "(sole trader profits - your wage) x4". This is then normally added to the directors loan. So say you transfer £10k of goodwill, the business then owes you £10k. That money is kept of the directors loan.

    Then you need an accountant to do accounts and possible PAYE. Expect to pay £400-1000 for this.
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