Accounting for Limited Company.
Limited Company is one of the most popular business models in the UK.
To set up a private limited company you need to register with Companies House. This is known as ‘incorporation’.
To do that, you will need:
- A suitable company name. Your name cannot be the same as another registered company’s name.
- A Company address. Your registered office address is where official communications will be sent, for example letters from Companies House. It must be a physical address in the UK.
- At least one director. Directors are legally responsible for running the companyand making sure company accounts and reports are properly prepared. A director must be 16 or over and not be disqualified from being a director. Directors do not have to live in the UK, but companies must have a UK registered office address.
- At least one shareholder, who can be a director. If you are the only shareholder, you will own 100% of the company. There is no maximum number of shareholders.
Once the company is registered you’ll get a ‘certificate of incorporation’. This confirms the company legally exists and shows the company number and date of formation. You will need this to set up a business account.
Limited liability, personal assets protected.
The biggest benefit of a limited company is a limited liability protection. This means that the finances and assets of the individual are protected beyond what they invest in shares or guarantee to the company.
If a limited company is sued or unable to pay its bills, the owners are only at risk of losing the nominal value of their shares, the amount stated in their guarantees or the money they have already invested in the business.
What tax should you pay?
By setting up a company, you could reduce your Income Tax and National Insurance Contributions (NIC) by taking a combination of a salary and dividends. You will be required to pay dividend tax, but this is much lower rate than Income Tax rates. Dividend is a part of
a net profit paid to a shareholder. Tax free threshold for dividends is £2000 in year 2018/19.
Services to meet your needs.
I understand that small businesses, sole traders want to get on with their own work, and not have to worry about accounting, taxation or other paperwork. That is why I provide
a comprehensive and professional services to take all that off your shoulders.
Do I need to register for VAT?
If the company’s turnover is higher than £ 85,000, it must register for VAT. You can also
do this without reaching the threshold if it is beneficial to the business.
I offer the following services for limited companies, company shareholders and directors:
- Free consultation before registering the company,
- Registering the company with the Companies House and HM Revenue & Customs,
- VAT Return,
- Corporation Tax to HMRC,
- Accounts for Companies House,
- Director’s Self-Assessment,
- Payroll, payslips,
- Help in opening a business account,
- Acting as an Agent on behalf of the client.
Is Limited company the best form of business for you?
Setting up, owning and operating a limited company is a major commitment. Once you decide to go for it, you will be responsible for each step of the process and for ensuring these are all managed and completed correctly.
Before you make the final decision, you must consider all pros and cons. You want to avoid unnecessary bureaucracy, penalties.
From experience, each such decision should be taken individually, and it is worth seeking professional advice in this matter.