Limited Company Services – (Full Accounting). Limited Company – a company with limited liability. Unlike the self-employed, liability does not apply to personal assets, only to the assets brought into the company.
It is the most prestigious form of business and saves on taxes when turnover is high. If you are unsure whether this is the right form for you, please contact us.
One of the many options for doing business in the UK is a limited company – or Limited Company. Unlike a self-employed business, directors are not liable with all their assets for the actions of their company.
A limited company is a separate entity (different body) and any liabilities arising from the company’s activities are the responsibility of the individual company to the extent of the assets contributed. Capital contributions are not required in a limited company in the UK and, therefore, there are no provisions for obtaining and maintaining them. Registering Limited companies is more complicated than, for example, registering a self-employed person, so this should be done by accountancy firms to avoid any problems associated with incorrectly completed forms.
Limited companies must pay Corporation Tax on income. Limited companies are also required to operate a Pay As You Earn (PAYE) system to collect income tax and insurance (National Insurance Contribution) from their employees, including the company director. All employees of a Ltd company in the UK are guaranteed a tax-free amount, which in the 2022/2023 tax year is £12,570 per annum. Limited companies are also required to register for Value Added Tax (VAT) if gross turnover exceeds £85,000 for the last 12 months. In addition, if you think you will exceed the VAT registration threshold in the next 30 days, you should also register under this scheme.
Furthermore, it is possible to voluntarily register for VAT to improve the overall image of your business. If a company already pays VAT, it can claim a refund of the VAT paid on purchases made by the company. We are required to do VAT returns every three months. On the other hand, limited companies that provide construction services (CIS) and employ subcontractors must submit monthly returns to the tax office, in which they inform the office how much the subcontractor has earned and how much tax has been paid. It is very important to consult our accountancy office free of charge before deciding to open a Limited company and make sure that this is the right form of business for you. In summary, it is a great choice for companies with a high turnover, but not only. It allows you to save on taxes.
Advena accountant office in London.
For more information call 0203 4902 919 or 07716161381
