Is it right for you?
It has become fairly well established now that a limited company structure is a useful way to limit your financial liability that provides a tax efficient wrapper for conducting your business affairs. Certainly, if you expect your net profit to rise and you want to choose how to distribute this income in a tax efficient manner, then taking the plunge to ‘go limited’ makes sense. The rate of corporation tax is now just 19% across the board and there is no Class 4 NI or payments on account for companies. It is an ideal format for growth from day one, with totally separate personal and business identities.
As a director, however, you will need to pay yourself. That’s where some clever calculations need to be made to ensure the best tax savings. Dependent on your particular financial circumstances, we can formulate an efficient director’s remuneration package comprising a mix of salary and dividend payments. The government introduced some major changes to dividend tax in 2017/18 and this does impact higher rate tax payers specifically. Even so, there is no NI payable on dividends and you will still have far more flexibility in removing your capital from a limited company structure when compared to that of a sole trader. Plus your salary element is a business cost to the company, so you gain a wage and the business pays less tax - in contrast with a sole trader/partner scenario.
Starting at £79 a month, you can keep track of your transactions, VAT, assets and liabilities with whichever bookkeeping software you choose, or we can remove the bookkeeping and VAT burden for £30 per month* and leave you free to concentrate on growing your business. Either way, we can perform director remuneration calculations for you and provide an ongoing estimate of your upcoming tax liability, to inform your savings goals.
Sign up now for a Limited Company package, and we'll evaluate your chosen trading style for legislative and taxation compliance, with guidance formulating a tax efficient Directors Remuneration structure. We will also register your company with HMRC for Corporation Tax, employers PAYE/NI (so you can pay yourself), director’s Self Assessment Income Tax and VAT, if applicable. Companies House formation includes filing of Directors details, Shareholder Capital and Ordinary Share Issue. Supplying Certificate of Incorporation, Memorandum & Articles of Association plus the Minutes of the First Board Meeting and Shareholders Certificates. We will also provide an introduction to a Business Bank who can setup your Limited Company bank account.
*£30 a month for bookkeeping includes up to 50 transactions - about two sides of a printed bank statement. We charge an extra £20 for each extra 50 transactions beyond this, but only if you are consistently and significantly above the limit.