Tax Savings

Trading via a limited company gives you the ability to manage your personal tax liabilities in a tax efficient manner. As a sole trader you are taxed at all your profits using income tax rates which can vary from 20% to 45%. If you are a higher rate tax payer then trading via a limited company can save you tax. Company’s pay corporation tax at 19% and any profit left over after paying tax can be withdrawn by the company owner(s) as dividends, when they need it. They have to pay a slightly lower rate of tax on dividends which can vary from 7,5% to 32%. The key advantage of trading through the limited company is that you can accumulate your money in the company (assuming you make profits more than the money you need for your expenses) and pay 19% corporation tax on it. If you are higher rate tax payer, then by managing your dividends amount carefully you could save up to 25% of tax each tax year. Contact us to discuss your specific circumstances.

Credibility

A Limited Liability Company carries more credibility as the companies records are readily available at Companies House for anyone to check. This level of transparency is not available to a sole trader. General perception in the market is that a limited company carries a more professional image compared to an unincorporated business ie a Sole Trader.

Asset and Brand Protection

Assets held in the company are separate from your personal assets and therefore should your personal circumstances take a turn for the worst, the assets held by the company could be protected. This may include any intellectual property, brand names or physical assets. In this world of social media and on line marketing, branding is a key asset for the business and protecting it would make a lot of sense.

Easy and Quick to Set Up

You can get started with a Limited company within a few hours of completing the application form for the company registration. With company formation packages starting form £13, it makes sense to test out your business idea by forming your company today
With a unique name, prestigious business address and all the advantages of limited liability, forming a company is pretty straight forward. You need to decide on a name, who will be the owners (shareholders) and who will run the business on a day to day basis (Directors). Good news is that Director and Shareholder can be the same person or if you want you can add your family member(s) or business partners to the company as and when you like.
Choose one of our packages and get started today

Drawbacks of a Limited Company

• Public Information

• The company data is available for any public member to check on Companies House. This provides transparency on one hand but it does mean that some personal data could be available to the public. To guard against such issues it is recommended that company’s registered office services are purchased as part of forming the company. Directors can also use service address to ensure their home address is not available in public records.

• Director’s Responsibilities

• A company Director becomes responsible for making sure company keeps proper books and records, files accounts and annual confirmation statements on time and meets its obligations as they fall due. This can be an onerous task and that is where Accounting Services from Premier UK Business can help you share the compliance burden. Regular, proactive reminders and services can help ensure deadlines are not missed.

• Accounting, Tax and VAT

• As a business person you will have to encounter the challenge of maintaining financial records, ensuring business is registered for VAT at the right time and the taxes due are paid in a timely manner by filing accounts and tax returns to the government. A company Director is responsible for making sure the accounts and tax filing obligations are met. If you are new to all this or even if you have run the business before you will know that these tasks can be time consuming and deadlines are easily missed when you are running around focused on business development matters. Therefore a suitable Accounting Services package from Premier UK can be a great help in making sure that you have a reliable partner who can take care of compliance matters while you are focused on business development