A limited company is a business that limits the amount of liability undertaken by the company's shareholders.
Incorporating your business as a limited company requires you to register it at Companies House. This creates a separate legal entity, which is your company. Contact us for advice on how to set up a new limited company.
Advantages of a limited company
- The main advantage of setting up a limited company is that its finances are separate from yours. This reduces your personal exposure to financial risk, so if the business fails (or is sued) then you are liable only for the face value of your share in the business.
- Another big benefit is the tax regime: companies pay corporation tax at 19 per cent on their profits. This can be significantly more tax-efficient than paying income tax on income, especially for higher-rate taxpayers (though as a director you will still have to find a way to take income from the company, such as salary or dividends, which will be taxed accordingly).
- To set up a new limited company, you must register the company name with Companies House.
- This business identity is unique to you and will be protected from other businesses trying to use the same name.
- You have the option to offer company shares to your employees, which motivates them more and gives the chance to have a say in how the business is run.
Disadvantages of a limited company
- One downside is that a limited company involves much more administration.
- You must submit an annual company tax return and full statutory accounts to HMRC and are responsible for paying employees’ income tax and NI contributions too.
- Certain information on the company, its directors and shareholders is available in the public domain.
How can we help with limited company accounting?
After the end of a financial year, a limited company must supply HMRC with the following documentation:
Both documents take time and accuracy to complete, and can often be a strain on your business' resources as a result. Hysons specialise in filing all necessary accounts with HMRC and Companies House, while avoiding any potential penalisation from late submission. Furthermore, our business accounting services can help you set up a a new limited company.
Why choose Hysons?
Finding a good accountant can be the difference between seeing your business struggle or flourish. Our experience in limited companies makes us a great choice when outsourcing business accounting services, as we understand the wide variety of requirements in this sector.
To find out how you could benefit from one of our expert services, contact Hysons, Chartered Accountants in Hampshire to book a free accounting consultation with one of our limited company accountants.