Limited Company is in fact the most tax efficient way to structure your business! Forming a limited company will allow you to take home at least £4,000 extra every year by simply paying less tax on your income!
In addition to that you can increase your annual income by approximately £2,000 by registering for VAT! Go to VAT page to find out how this can be achieved.
Additionally, it could be sensible to pay your spouse, partner or other family members a wage from your business or indeed you might want to let them have a shareholding in your company.
A limited company is a separate legal entity from its owners. It can trade, own assets and incur liabilities in its own right. Your ownership of the company is recognised by owning shares in that company. If you also work for the company, you are both the owner (shareholder) and an employee of that 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.
We offer help and advice with Company Formation. Go to Company Formation page for detailed explanations of the Company Registration process.
In addition to that we offer wide range of accountancy services of limited companies:
We offer various accountancy packages for Limited Companies to suit your business needs and to ensure that you are relieved from burden of dealing with HMRC and Companies House and instead you concentrate on running successful business.
Complete our simple quotation form and we promise we beat any quote you had so far!