Limited company

If you have decided to form a limited company. First of all you have to decide how many Directors, who is going to be Company Secretary and how many share holders. Minimum requirement to form a limited company is one Director, and one Company Secretary. A limited company is a separate legal entity from its owners. It can trade, own assets, and incur liabilities in its own right. Your ownership of the company is recognised by owning shares in that company. If you also work for the company, you are both the owner (shareholder) and an employee of that company. When a company generates profits, they are the company’s property. Should you wish to extract money from the company, you must either pay a dividend to the shareholders, or a salary as an employee. The advantage to you is that you can have a balance of these two to minimise your overall tax and national insurance liability. Companies themselves pay corporation tax on their profits after paying your salary, but before any dividend distribution. Effective tax planning requires profits, salary, and dividends to be considered together. A big advantage of owning a limited company is that your personal liability is limited to the nominal share capital you have invested.
Soon after your company has been formed at Companies House, HMRC will issue a form “CT41G”. By completing this form HMRC will register your company for Corporation Tax; this is charged at 20% for the year 2011-12 payable on the company profit. The rate of Corporation tax normally changes each year, and is fixed in the budget presented to Parliament by the Chancellor of the Exchequer.

It covers the following services
 PAYE registration
 VAT registration, including registration on the Flat Rate VAT scheme
 Opening a company bank account
 Monthly profit calculation so you can decide on withdrawals
 Monthly/Quarterly calculation of PAYE/NIC payments
 Quarterly VAT Returns
 Annual PAYE Returns (P35, P14 & P60’s)
 Annual P11d preparation
 Prepare and review Companies House Annual Return
 Prepare Annual Accounts
 Calculate and prepare CT600 (Company Tax Return)
 Personal Tax Return
 Regular News Updates emailed direct to you
 Telephone Helpline
 NO spreadsheets to complete
 Book Keeping