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Many companies are taking advantage of the benefits of tax and other areas their company can enjoy by becoming incorporated as a limited company. If you have considered it in the past or are currently in the position to register your business as a company – we want to help.
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If you are wondering why so many businesses become limited companies, we can help, by highlighting some of the biggest and best benefits that come from making the bold decision:
Perhaps one of the most important reasons why you should consider setting your business up as a limited company is it offers protection against your wealth and assets. When your business is a limited company, the financial side of your business is separate from your personal tax finances. This means you are protected against litigation, bankruptcy, and similar things. If you are operating as a sole trader or partnership, you are less protected.
Another huge benefit is if your business is a limited company, it will have a greater tax efficiency of around £30,000 of its annual profit. (Here’s a guide on how to pay less tax).
It is very difficult to set up and source the finance for a new project or business venture if you are in a partnership or acting as a sole trader. However, if you are a limited company, this process is a lot easier and quicker.
When you become a limited company, it adds an extra degree of authenticity and authority. Along with this, another advantage is that your clients and customers can check your business credit rating, which will help them to decide if they want to work with you or not
Further to the above point, your business being a limited company helps to make it look more professional and established. People trust limited companies more than partnerships and sole trader operations.Speak To A Chartered Accountant
It is not always an easy thing to do – make the right choice about which business entity is best for your business.
At Tax Bite, we understand this and are here to help. We can discuss with you the individual requirements you have and conduct a comprehensive risk assessment that will give you the information and insights needed to make the best decision.
It doesn’t matter whether you decide to proceed with setting up a company or wish to carry on as an unincorporated business, we will provide an assessment which will calculate and highlight the most profitable tax arrangements that are available to your business.
If you would like to find out more about the help we can provide, choose the direction your business should go, please give us a call on to speak to one of our limited company accountant experts.
As you, and we, are aware, running a business, especially if it is a complicated entity like a limited company, can be a huge challenge.
Why not make it less of a challenge by enlisting the help of the team here at Tax Bite. We have accountants who can deal with your taxes, bookkeeping, general accounting and payroll, among many other services.
Perhaps you are already working with an accountant, or if this is indeed the first time you are considering hiring an accountant, you need to know what you should look for in a firm.
If you have a local limited company, you will want to choose an accountancy firm that understands what it’s like to run a local business in the area you are based. That’s what you get when you hire an accountant for a Limited Company here at Tax Bite.
It is important to arrange a face to face meeting with potential accountants so you can get a better idea of what it will be like working with them.
Although it is best to meet in person, the last few years have seen great developments in video call software. If that is a better fit for your circumstances, then that is what you should do.
Have you ever found yourself for more hours in your working day? When you hire a professional accountant to help take care of the accounts that’s essentially what you can do.
Although it won’t increase the length of the day, it will free up your time. Some of the most important ways an accountant can help with managing the financial accounts of your limited company include:
If you are currently looking to incorporate your business, you can hire Tax Bite to help. The chartered accountant your business is assigned from our team will be able to register your company through Companies House. As the process is long and laborious, having professionals take care of your accounting and tax services, gives you more precious time to spend growing your business.
Which is crucial in the early days. Your new accountant can also give you tax planning advice about the new tax liabilities your company has and liaise on your behalf with HMRC to register your limited company for corporation tax, VAT, and payroll.Contact Our Team
In larger companies, payroll is usually managed in-house. However, for smaller businesses, though, it is better to use an accountant. If you didn’t, you could easily lose many houses of your valuable time, spending time calculating income tax and filing HMRC documents.
They will take on the responsibility of ensuring your company is fully compliant with legislation, guidelines and regulations, allowing you the freedom to concentrate on more fulfilling and helpful things, Although it will mean paying a fee, the long-term savings you will make by outsourcing payroll to a team like Tax Bite will be worth it compared to the expense involved in payroll training and software.
Valued Added Tax or VAT for short is three short words that have enough power to fill even the strongest individual with dread. The problem many businesses find is VAT can be incredibly complicated, and its regulations always seem to be evolving and changing.
By hiring a VAT accountant through Tax Bite, though, you can benefit from expert support and advice as you endeavour to make sure your company is fully compliant with VAT obligations. They will also help you to choose the best payment scheme for your limited company, so you are not paying more than necessary.Contact Our Team
Bookkeeping is yet another one of those laborious, but crucial tasks that all limited companies need to make sure they are doing. You need to be extremely fastidious and log absolutely every invoice and receipt.
All of the efforts pays off in the end, though when it comes to the end of the trading year. The last thing you want to be doing is rushing around trying to find paperwork that should have been collated and filed properly.
Rather than face these kinds of problems, it is wise to turn to Tax Bite, which can help you with bookkeeping. For more information about our bookkeeping services for limited companies, contact us today!
You can expect an official HMRC letter outlining your obligation to file a tax return by the end of the financial year. This is an important process as it declares your taxable profits, and even if you are below the tax payment threshold or made a significant loss, you should still submit a tax return.
There are many pieces of vital information required on a tax return – a different version of your profit and loss account was included in the company’s annual accounts. This should highlight your adjusted profits, which is, the gross profits minus investments and expenses.
The paperwork for limited company tax returns can be very intimidating, but with our accounting and tax services on your side from the Tax Bite team, we can take care of preparing it, calculating your corporate tax bill and providing you with regular reminders of when you need to pay the bill.
To find out more about our tax return services, please contact Tax Bite today.Speak To A Chartered Accountant
As we have already discussed, it is your responsibility if you are the director, to file the annual accounts for your business with Companies House and HMRC every single year.
If you fail to do this, you will be charged huge fines and could find yourself being struck from the register and potentially facing legal action.
When you hire an accountant from Tax Bite, they will not allow this to reach those stages. They will do all the hard work of collating and producing the needed paperwork and ensuring it’s submitted before or on the dot.
Other documentation required, depending on how big or small your business is, includes a report from the limited company director, a profit and loss account, a balance sheet and other vital notes.
We understand that it is a big commitment to make, and we don’t want you to rush into any decision you will later regret. However, we are confident in the quality of our services and the passion our team members have for delivering quality.
At Tax Bite, we avoid using terms like account managers. When you choose to work with us, you get your own dedicated limited company specialist accountant based in one of our UK offices, who will take considerable time to get to know all about you and the business.
At Tax Bite, we offer full support for many of the big names in the bookkeeping software industry, such as Xero, FreshBooks, QuickBooks and more. They have an expert understanding of how the software works and can optimise it for your limited company.
The chartered accountant we assign you will always be available to speak to if you have any questions or queries about the finances of your limited company.
Hiring one of our chartered accountants for your limited company means that you have the peace of mind that all the important documents such as your confirmation statement that need to be filed and sent off, are managed. These services are included in any price we quote you. We do not add extra fees or surcharges.Contact Our Team
We pride ourselves on being contentious here at Tax Bite, which is why we send out regular deadline reminders containing reminders for when accounts and returns for your limited company are due.
Throughout your business relationship with our team, your dedicated limited company chartered accountant will regularly conduct tax-efficiency reviews into your business to make sure it is working most productively and efficiently.,
Although there is no real legal obligation that states you need an accountant for a limited company, because of the legal responsibilities you will have as a limited company director, along with the different taxes you will need to pay, having an accountant is a great idea.
The best accountant for a limited company is one that will be able to keep you on top of the finances of the business, get your tax returns in on time and allow you the freedom to not worry about your finances and concentrate on your business journey.
The thing you need to realise is that when Tax Bite are assigning you an accountant for your Limited Company, we will take into consideration the size of your company and its activities, the different financial accounts you have and how comprehensive your records are.
Limited companies have accounting periods. When these periods end, that’s when you need to prepare the accounts and then submit them over to HMRC and Companies House.
Accounting software is normally the go-to for producing professional and clear accounts. It is the best store everything in the same place -an online accounting software. That means your sales invoices, expenses, and bank accounts. As well as ensuring you are compliant with the Making Tax Digital rules laid out by HMRC for VAT and associated taxes, it will just make things easier and simpler when it comes to preparing your tax returns.
To get the best out of any accounting software, regardless of which is your preferred one, we would recommend you speak to an expert team like the one here at Tax Bite. They know accounting software inside out and use them effectively to the benefit of your limited company.
It is crucial that your limited company accounts are submitted to Companies House 9 months after the accounting period finishes and the accounts and corporation tax return should be submitted within 12 months of that period to HMRC.
There are a variety of different taxes that you will need to pay for your limited company, this includes VAT, national insurance, and corporation tax. At Tax Bite, we can help you understand the more specific taxes your company may be due, depending on the structure of your business.
If the limited company you own and run makes a profit, you can pay dividends to its shareholders. You need to keep in mind, though, that dividends don’t count as business expenses when you are calculating how much corporation tax you need to pay. You also need to keep in mind that it is illegal to pay dividends if your limited company does not have access to sufficient profits once the tax has been paid to cover those dividend amounts.
It is usually more tax-efficient, when paying yourself for your position as a company director, to take a combination of dividends and salary from the company. Most company directors tend to take a low salary, one that is below the threshold for National Insurance and pay more to themselves in the form of dividends. Your salary would be paid to you the same way you would pay a normal employee.
This is an interesting question as there are complicated rules about which kinds of limited company needs to have audits. You can find out more directly from the HMRC website or by speaking to one of the team here at Tax Bite.
If your limited company has an annual turnover of less than £10.2m, and assets less than £5.1m, you do not need an audit. Having said that, some limited companies have assets and turnovers below these levels and still have audits so they can be compliant with financial covenants.
The simple answer is yes, you will need to record every transaction through your business bank account to make sure the accounts are in balance and can be reconciled at the end of the year.
Legally, you need to keep company records for 6 years from the end of the previous financial year they are related to, if:
It is your responsibility as a limited company director to authorise tax returns. At Tax Bite, we can help you with the preparation of your company tax returns, and file them for you, but the responsibility of signing off on them will always be yours.
As rewarding and beneficial as it can be to incorporate your business and become a limited company, there are many complex rules and regulations you need to be aware of, on top of the fact that you have the different accounts, records and tax returns to deal with. That’s why we recommend that you hire one of our team of specialist limited company accountants.