Limited Companies
An Overview of Limited Companies
What is a Limited Company?
Limited Companies
At Uptax Limited, we understand the many challenges that limited company directors face. As dedicated limited company accountants, we’re here to lighten the load for our clients, ensure they remain compliant, help them save money and establish strong financial roots from which to grow.
Whether you need a bit of assistance with your company tax return or more strategic financial advice to inform your growth plans, Uptax can be a valuable accounting partner.
We work with sole traders looking to branch out and incorporate their business, as well as established small to medium limited companies. Whatever your aspirations as a company director, our highly qualified team of accountants are here to support you.
Contact us today to make an enquiry about our limited company accounting services.
What is a Limited Company?
A limited company is a type of business structure that is a separate legal entity from its owner(s). It provides limited liability protection to the owner(s), meaning their personal assets are safeguarded against the company’s debts and liabilities.
Limited companies can generate profits, own assets, enter contracts, and sue or be sued in their own right. They are governed by company law regulations and are required to file annual financial statements and other legal documents with the appropriate regulatory bodies, such as Companies House.
Benefits
What are the benefits of being a limited company?
More tax efficient
One of the biggest advantages of running your business as a limited company is the potential tax savings. As a sole trader, you must pay income tax on your total earnings. Once your profits exceed the Basic Rate band, the rate jumps from 20% to 40%. Limited companies, on the other hand, pay corporation tax, which is currently 19% for profits under £50k and 25% for profits above £250k.
As a director and shareholder of a limited company, you may opt to take a small salary and receive most of your income from the business through dividend payments. This can help you reduce your National Insurance contributions; plus, you will only pay dividend tax on the income you receive from the company instead of paying income tax on all your earnings.
Distinct entity and limited liability
As a sole trader, you are not distinct from your business. You are personally liable for any losses the business makes, which means your personal assets, e.g. your car and home, are at risk. While this doesn’t represent a significant risk for many small business owners, it can become more of a concern as a business grows.
A limited company is a separate entity from its owner(s), providing the reassurance of ‘limited liability’. Assuming no fraud has taken place, limited liability status means you are not personally liable for any financial losses made by your business.
Professional image
Limited company status demonstrates a commitment to professionalism and accountability, which can elevate the reputation of a business. It can make a business attractive to work with, instilling trust and confidence in clients, suppliers, stakeholders, potential partners and investors.
Our limited company accounting services
Uptax works with all kinds of small to medium sized businesses to help them manage their limited company accounts, stay compliant and save money. From company formation to tax returns, simple bookkeeping to strategic tax planning, we can support you at every stage of your limited company journey.
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Our Services
Some examples of our Ltd company services
Company Formation
Whether you’re starting a new company or restructuring an existing business, our tailored company formation services provide the support and guidance you need to get started on the right foot. We handle all aspects of company formation, from advising on the most suitable structure for your business to completing and filing the necessary paperwork with Companies House. We’ll also ensure you are fully up to speed with your new responsibilities as a company director.
Company Formation
Whether you’re starting a new company or restructuring an existing business, our tailored company formation services provide the support and guidance you need to get started on the right foot. We handle all aspects of company formation, from advising on the most suitable structure for your business to completing and filing the necessary paperwork with Companies House. We’ll also ensure you are fully up to speed with your new responsibilities as a company director.
Company Formation
Whether you’re starting a new company or restructuring an existing business, our tailored company formation services provide the support and guidance you need to get started on the right foot. We handle all aspects of company formation, from advising on the most suitable structure for your business to completing and filing the necessary paperwork with Companies House. We’ll also ensure you are fully up to speed with your new responsibilities as a company director.
Bookkeeping
Our bookkeeping services can help alleviate the burden of day-to-day record-keeping, allowing you to concentrate on running your business. Our team is highly proficient in the latest cloud accounting software, ensuring your financial transactions are accurately recorded, categorised, and reconciled in real time.
Payroll
If you find managing payroll in-house cumbersome and complex, the Uptax team can take it off your hands. We are highly experienced in running payrolls and can ensure you fulfil your PAYE obligations. We’re also here for advice on managing auto-enrolment.
VAT and Tax
Our team can help you fulfil your company’s VAT and corporation tax liability with ease using the latest MTD-compatible accounting software. We can ensure your compliance and help you identify all available deductions to help retain as much profit as possible.
Along with corporation tax returns, we can offer expert financial advice on your personal tax affairs.
Annual Statutory Accounts
Our limited company accountants can assist you with financial statement preparation, including balance sheets, profit and loss statements, and cash flow statements. We will ensure that your annual accounts are submitted on time to HMRC and Companies House to avoid unnecessary penalties and provide you with valuable peace of mind.
