Chartered Certified Limited Company Tax Accountants in London

Limited Company Accountants

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.

Limited Company Accountants

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)

Limited Company Accountants

Advantages being LTD

Llimited liability, easier access to financing, attract investors, invest excess Company and lower rates of tax.

Disadvantages being LTD

Increased levels of tax and regulatory compliance, higher accountancy fees and disclosing your financials on the public domain.

Director duties

Maintaining financial records, preparing financial statements, tax compliance, ensuring company doesn't become insolvent.

Cash extraction

A combination of salary and dividends is the most tax efficient. Read our blog for a full explanation.

Gifting shares

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.

Closing down

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!

UK corporation tax rates from April 2023

UK corporation tax rates from April 2023

UK corporation tax rates change from April 2023. We’ve summarised the big changes and explained the importance of working these new rates into your business tax planning. #corporationtax #business

Read More
Company year-end tax planning

Company year-end tax planning

Is your company’s year-end getting close? Talk to us about planning your year-end tasks and delivering a smooth and hassle-free year-end process. #tax #accounting

Read More
The rules for making company charitable donations

The rules for making company charitable donations

Are you donating money or equipment to a charitable cause? Make sure you’re using the right tax treatment and keeping all the correct records. #charity #donations #businesstips

Read More
Do you know your business breakeven point?

Do you know your business breakeven point?

knowing how much income you must generate to cover all fixed and variable costs means you can make better business plans and financial decisions for long-term sustainability and profit.

Read More
Is your business insolvent?

Is your business insolvent?

Your company is insolvent when it can’t pay the amounts it owes. If you’re struggling financially, get in touch with us sooner, rather than later.

Read More
Should I get an electric car?

Should I get an electric car?

Choosing an electric vehicle (EV) as a company car makes a lot of sense in 2022. We outline the eco and tax benefits of opting for an EV over an petrol/diesel vehicle (ICEV). #companycar #tax

Read More
Paying dividends the tax-efficient way

Paying dividends the tax-efficient way

Planning on taking a dividend this year? We’ve got some important advice on how to do this in a tax-efficient way, so you don’t pay a penny more than is necessary. #dividends #taxplanning

Read More
Business tips - Scaling up your business and workforce

Business tips - Scaling up your business and workforce

Is your startup ready to scale up? We’ll help you build a viable scale-up plan, with costings, budgets and achievable targets to meet. #businessadvice #startup

Read More

I have been provided a excellent service. There is always someone on hand to guide not only my accounting but business needs too. I have been various options to help me with my financial position. Always go above and beyond to ensure my specific conditions are met. Even throughout the pandemic, my satisfaction with this firm in dealing with my business and personal finances is unmatched. I have recommended it to many and will carry on doing so!