What You Need To Know Before You Go Limited

What You Need To Know Before You Go Limited

Have you been thinking of going limited for your business? It’s easy to set up a limited company with Companies House and the cost is minimal too. The limited liability and lower tax could make a huge difference to your business too. However, there are things you need to know before you go limited.

If you’re the sort of person that hates rules and regulations and you’re not working with a trusted accountant, then going limited may not be the best option for you. Below we have listed some of the main things you need to before you go limited with your business.

A Separate Company

When you become limited your company is separate from the owners or shareholders. This means that if your company goes bust the shareholders will just lose whatever their shares cost them. However, as a sole trader, shareholders are personally liable for the debts of the business. When someone lends a limited company money, they will be likely to ask for a personal guarantee from the directors, so their money is safe.

Separate Bank Account

As a limited company the company will need its own bank account as it’s classed as a legal ‘person’. The company’s money is not your money. To get money out of the company it would be classed as dividends. However, dividends are only payable from net profit after corporation tax. As a limited company owner, you will not be able to take money from the bank account anytime as you would a sole trader, whether you have made profit or not.

Getting Paid

A director runs a limited company on behalf of the shareholders. You may earn a salary from the company and then dividends on top of this, if you are a shareholder. You are entitled to any expenses, as long as they are genuine business expenses. If you take money out of the company that is not a refund on expenses, salary or dividends this is classed as a director’s loan.

Things To Do

Every year you must file a confirmation statement that states any changes in capital, shareholders or persons of significant control. You must file accounts no later than 9 months after year end. A corporation tax return must be submitted to HMRC. If you have an accountant, you will find their fees are higher for your business as a limited company than a sole trader. This is because more work needs to be completed.

 

If you do not have an accountancy background and do not have a reliable accountant in Peterborough to turn to, it may not be right to become a limited company. However, if you are keen to go limited for your business, then call our team for advice specific to your circumstances. We can help set up a limited company and work with you through all the financial and legal regulations.

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Testimonials for AK book-keeping

Electronics online retailer

Our decision to choose the services AK Book-keeping and Payroll Services has turned out to be a really important enabler to the growth of our business and has delivered us fantastic value for money. Their accuracy and efficiency in compiling our accounts and payroll documents has allowed us to focus on the things which we do well and add real value whilst removing the distraction of unwanted and complex administration work. I would recommend them without hesitation.

Chris

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2015-10-23T16:25:46+01:00

Chris

Our decision to choose the services AK Book-keeping and Payroll Services has turned out to be a really important enabler to the growth of our business and has delivered us fantastic value for money. Their accuracy and efficiency in compiling our accounts and payroll documents has allowed us to focus on the things which we do well and add real value whilst removing the distraction of unwanted and complex administration work. I would recommend them without hesitation.

Carpet & Lighting retailer

Now that we have AK Book-keeping doing all our tax returns, wages but to name a few, we have more time to focus on the business and a lot more leisure time

Simon & Cathy

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2015-10-23T16:26:07+01:00

Simon & Cathy

Now that we have AK Book-keeping doing all our tax returns, wages but to name a few, we have more time to focus on the business and a lot more leisure time

Multiple Franchise Owner

I Periodically review my resources (like any business should) and on each and every occasion I have decided to retain AK Bookkeeping’s services. It’s one of those business I know I can depend on.

Bob

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2015-10-23T16:44:40+01:00

Bob

I Periodically review my resources (like any business should) and on each and every occasion I have decided to retain AK Bookkeeping’s services. It’s one of those business I know I can depend on.

John – Building Company owner

We engaged AK Book-keeping some two and a half years ago, from the outset their communication has been excellent. We were provided with a schedule of monthly costs and a clear indication of what was included. To date we have had no reason to consider changing from AK Book-keeping as their service has been reliable, efficient and cost effective.

AK Book-keeping introduced us to Xero accounting system from the outset and for a reasonable monthly fee we benefit from all the Xero facilities available and have access to view our account, use data and monitor our performance and it is all relatively simple. We would recommend AK Book-keeping and the Xero system.

John

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2016-02-05T16:33:23+00:00

John

We engaged AK Book-keeping some two and a half years ago, from the outset their communication has been excellent. We were provided with a schedule of monthly costs and a clear indication of what was included. To date we have had no reason to consider changing from AK Book-keeping as their service has been reliable, efficient and cost effective. AK Book-keeping introduced us to Xero accounting system from the outset and for a reasonable monthly fee we benefit from all the Xero facilities available and have access to view our account, use data and monitor our performance and it is all relatively simple. We would recommend AK Book-keeping and the Xero system.

Online Retailer

Les has worked with us for 12 years now and supported our Bookkeeping and Payroll needs. Always helpful, cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of Bookkeeping.

Online retailer

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5
2018-07-02T22:05:34+01:00

Online retailer

Les has worked with us for 12 years now and supported our Bookkeeping and Payroll needs. Always helpful, cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of Bookkeeping.

Peterborough online retailer

Les has worked with us for 12 years now and supported our bookkeeping and payroll needs. Always helpful and cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of bookkeeping.
AK Book-keeping
5
2018-09-19T18:24:06+01:00
Les has worked with us for 12 years now and supported our bookkeeping and payroll needs. Always helpful and cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of bookkeeping.
5
3
AK Book-keeping