Chartered Certified Limited Company Tax Accountants in London
What is a limited company
A legal structure from which a business can trade. The basic structure is that a person owns the company (known as the shareholder) and a director runs the Company. A director is typically paid a salary to run the company and at the end of the year, if there are profits remaining, the shareholders can be paid a dividend, which represents a return on their investment.
What is "limited liability"
In the UK, most limited companies are known as "owner managed businesses", meaning the director and the shareholder are the same. The additional benefit for directors and shareholders is that a company has "limited liability". This effectively means creditors cannot pursue a director or shareholder personally for debts of the company (unless of course there is mischief/fraud).
How we can help
Advise on a suitable business structure
The decision to trade as an incorporated entity should always be driven by commercial factors.
Set up a tax efficient structure
This will depend on start-up funding, losses, profit extraction, capital raising and exit planning. A poor set-up could end up tax leakage (paying too much to HMRC).
Manage your director duties
These include keeping company records and reporting changes, ensuring the company does not become insolvent, filling accounts at Companies House and ensuring the company meets its VAT, PAYE and Corporation Tax responsibilities.
Advise on capital raising options
Several strategies available such as: extending an overdraft facility, long term/short term loans, purchasing capital equipment using leasing, hire or finance purchase terms, sale and leaseback of buildings or even a share issue
Advise on tax efficient restructuring
Buying competitors, setting up a new business/shop/trade, splitting out your trades in anticipation of a future sale, closing a part of your business or selling one or more business lines.
Advise on tax efficient exit planning
Selling shares is the simplest way to release equity. However, there are several other options available depending on your personal circumstances (for example you may wish to sell your trade but personally retain assets such as commercial buildings to generate a future income stream)
A kind act that could be punished with a huge tax bill! The amount of tax depends on who you make the gift to. There are some useful tax reliefs depending on your individual circumstances.
EIS / SEIS tax reliefs
If your business has a qualifying trade and meets the SEIS criteria and/or EIS criteria HMRC will approve your application. Ongoing compliance is crucial because if you fall foul of the rules, HMRC can withdraw the approval leaving both you and your investors in muddy waters.
If you are debt free a number of options are available depending on how much the business is worth. Things will get nasty if you become insolvent (owe people money and cannot repay). A forced liquidation may be the only option.
Read our latest blogs on Company tax, rules, accounting and so much more!
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