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What is a Limited Company?

When a company generates profits, they are the company’s property. Should you wish to extract money from the company, you must either pay a dividend to the shareholders, or a salary as an employee. The advantage to you is that you can have a balance of these two to minimise your overall tax and national insurance liability. Companies themselves pay corporation tax on their profits after paying your salary but before your dividend distribution. Effective tax planning requires profits, salary, and dividends to be considered together.

What are your responsibilities as a Limited Company?

  • Keep good accounting records from which accounts can be prepared which give a true and fair representation of the financial position of the company.
  • You must submit accurate company accounts, and file them on time with Companies House.
  • You must submit your corporation tax return (Form CT600) to HMRC and pay any tax liabilities due.
  • You must deal with the correct payment of staff (and yourself) – including the deduction of income tax and national insurance contributions, where they apply.
  • You must trade solvently, ensuring that you are able to meet the financial liabilities of your business

Benefits of trading as a Limited Company

Tax

One of the biggest advantages for many is that running your business as a limited company can enable you to legitimately pay less personal tax than a sole trader.

Shareholders

A limited company can issue various classes of shares. This means you can easily sell stakes in the company, or transfer ownership of shares.

Legal Entity

A limited company is a completely separate entity from its owners. Everything from the company bank account, to ownership of assets and involvement in tenders and contracts is purely company business and separate from the interests of the company’s shareholders.

Limited Liability

Running your business as a limited company means you have the reassurance of ‘limited liability’.

Assuming no fraud has taken place, your ‘limited liability’ means you will not be personally liable for any financial losses made by your business. A limited company can therefore give you added protection should things go wrong.

Prices starting from £495

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Annual statutory accounts

How we can help you

Annual statutory accounts

Our team will deliver annual Statutory Accounts to help you meet your reporting obligations. We also spend time giving insight into what the accounts say, to help you make sound decisions and devise strategies to grow.

Annual accounting & tax compliance

How we can help you

Annual accounting & tax compliance

We offer year end accounts preparation, as well as the full range of corporate (corporation tax, VAT) and personal tax services you need to comply with HMRC.

Periodic management reporting

How we can help you

periodic management reporting

We use the latest technology to provide you with rigorous real-time information. We present the most important and relevant data in easy-to-understand dashboards then spend time working through them with you, discussing what the insights mean to your business and how we can use them to make strategic decisions, drive growth and achieve your objectives.

Outsourced bookkeeping & payroll

How we can help you

outsourcing bookkeeping and payroll

We take on all your time-consuming bookkeeping, accounting and payroll duties using cloud-based software. You’re able to access real-time accounts and management information anytime, from anywhere, so you can react quickly, make informed decisions and stay ahead of competitors, while making sure all your Making Tax Digital (MTD) obligations are being met. What every our size, we also ensure your people are payed securely, swiftly and reliably, and keep you compliant with increasingly complex payroll legislation and updates.

Our bespoke payroll service allows you to concentrate on running a successful business, while we focus on this increasingly complex area incorporating all pay roll legislation and updates. Using the Bright Pay payroll service is an efficient way to ensures cure, reliable and compliant payroll provision for your business and employees.

Learn the basics

News & Helpguides

For the eager-to-learn business owners, we have a bank of helpful learning guides and information in our resource centre for you to add to your toolkit.

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