What to expect - accountancy processes for micro business limited company

[JennyWren]

I'm in the process of converting from a acting as a sole trader to a limited company. To help me through the more complicated tax reporting processes (I am also registering for flat-rate VAT) I have found an accountant. I trust him, but in reality I don't know him from Adam and I am just nervous about handing over the job without actually understanding what I am asking him to do for me - I feel that it can't be wise to not have an understanding of what I should be doing. How will I know if actually he's doing a good job or not?

I have an idea about paying myself a salary and dividends, and keeping money aside for the VAT and corporation tax liabilities, etc. - but I have no idea about the payroll process - what actually needs doing? Are there certain processes and paperwork that must be kept? I have a very simple business model - I am the only employee, director and shareholder, and I sell a service so have few expenses.

Can anyone give me a framework for what I should be expecting to happen?
Thank you!

You probably need to chat to a couple more accountants and see what they can offer, and compare what they advise with the one you have already spoken to.

How much has this one quoted for doing your accounts?

Do you need to register for VAT or not? If your turnover is below the threshold then you don't have to.

Most accountants will offer a free 30 min appointment. See if you can find a couple and find one that you like that explains things well.

How will you know if he is doing a good job or not?

Well, you might find that going to an accountant will save you more (in tax) than the fee he/she charges. They may suggest (legal) ways to do things that you haven't thought of. That will be a good job!

Don't over-expect. You get what you pay for. I have a constant battle with my tight boss and the level of service from our accountants. I know we could get more, but he won't pay. That said, they don't tantalise with any additional offerings, either, even though I know they have them. Sigh.

The HMRC website is great for explaining things. And good on you for wanting to know, rather than just handing it over.

Payroll wise you will need to register with HMRC and report your salary payments to them under the Real Time Infomation requirements on or before the day you pay yourself. Your Accountant may be able to do this for you. There's a useful guide here: www.gov.uk/business-tax/paye
Many new Directors take a minimum salary, at the National Insurance threshold (currently £663 per month) and receive Dividend payments outside of PAYE.

Do you have any Accountant contacts via friends or networking who would be happy to talk you through the process?

Thank you all! I have chatted this weekend with a friend who is an accountant and she's confirmed that everything seems to be in order - it is just that I was looking for an itemised list, I suppose. I've already had a free session with them to discuss what services they can offer me, and we're having another session when my company UTR comes through and they will help me set everything up, and then they will action the monthly, quarterly and annual pay and tax processes on my behalf. I'll do my own invoicing (the nature of my work means that I'd have to do the same amount of paperwork to put the info together for them, so I may as well do it myself and save that cost) and they have recommended that I use Quickfile to streamline things.
It isn't that I don't trust them to know what they're doing, it is just that I want to understand what they're doing - I can't bring myself to just blindly absolve myself of responsibility - I may delegate the action, but I want to understand what I am delegating, IYSWIM!

The payroll you could do yourself. I've just set up the one for DP who has started and like you is director and sole employee. You need to register with HMRC and then download the software for a relevant payroll company and then do the monthly filings via the payroll company.