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Business Taxation - Limited Companies

Operating as a Limited Company is often seen as the way to make your businesses credible. The compliance requirements are relatively complex compared to a sole trader, and there are restrictions about what you can do with the money you earn. Our emphasis is on ensuring you comply with the numerous regulations that exist, and assisting you to plan your activities to take advantage on the tax planning opportunities that arise within a limited company.

We offer service for the smaller owner managed business up to the Audit threshold, which is currently £6.4 million of turnover.

-Key Services

-Basis of Assessment

-Early Advice

small ovalKey Services

We offer a complete service including:

Incorporation issues
bullet "Get you started" service for new Limited Companies.
bullet Limited Company Accounts.
bullet Corporation Tax Returns.
bullet Directors Payroll.
bullet Profits Distribution policy.
bullet VAT Returns.
bullet Help with planning and correcting your record keeping.

As well as these core services, our principle can advise you on more commercial aspects of running your business, such as cash flow planning, credit control and investment appraisal.

Starting fees for a small Limited Company begin at £699+VAT for a small trading company. See our fees for details.

A typical new client would perhaps come to use for advice on what form their business should take. If a limited company is appropriate we would then assist with the company formation, registering for VAT, directors PAYE and crucially equipping the new director with the knowledge of who to keep good accounting records and how to think about taking money our of the company in a controlled manner to minimise taxation. Ongoing we would generally assist with the quarterly VAT returns, annual directors PAYE and prepare the final accounts promptly to give early knowledge of the amount of corporation tax due to assist cash flow planning. We would also make ourselves available for questions and queries during the year, normally all included within our fixed fees.

We can of course do less or more depending on your specific needs. If you have a small Limited Company, please feel free to get in contact, and have a free consultation about your needs.

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small ovalBasis of Assessment

The Limited Company is a separate legal entity to the owners, and is taxed in its own right. Any money taken out of the Company should be done so carefully and with advice to avoid penalty.

Your first year end is by default 12 months from the end of the month in which your incorporate. This may be varied.

Tax is calculated within the Company based on the incomes earned less applicable business expenses. Expenses may include salaries paid to director's, but do not include dividend payments.

Companies are required to both file accounts with Companies House and a separate tax return (the CT600) with the HM Revenue & Customs.

Filing and payment of taxes are due 9 months from the end of your company year end, with interim tax assessments not required unless your Company profits exceed £1.5 million per annum.

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small ovalEarly Advice

Although many people only seek advice toward the end of their first financial year, if you have a new Limited Company we strongly advise that you make contact at the outset. Time and time again we see that new clients taken on toward or after their year end have missed many opportunities to save tax, and have often inadvertently incurred penalties by withdrawing too much money from their business. The result is higher fees and more tax in the long term.

To combat this issue we offer our "get you started" package specifically aimed at the start up phase with a new Limited Company to help you avoid the common problem areas. Due to the considerable benefits for both our clients and ourselves we now offer this option at half our normal charge out rates to make sure you get off to a good start with your company.

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