Many of our clients trade through a limited company. This can be more tax efficient than operating as a sole trader and you also get the protection of limited liability.
However, this comes with an increase in compliance and costs, so the limited company option is not necessarily right for everyone.
Limited companies are required to submit accounts to Companies House (which will be on public record) and accounts and Corporation Tax Returns to HMRC.
Companies pay Corporation Tax on profits, but there may be personal tax due on funds withdrawn from the company by the directors/shareholders. This does give scope for tax planning opportunities, by considering when and how funds can be extracted from the company in the most tax efficient manner.
We have a wide range of clients trading through limited companies, from electricians to recruitment agencies to financial advisors. We therefore have a wealth of experience in working with and advising directors of limited companies to ensure they are operating in the most tax efficient manner possible.
Talk to us if you’re a Limited Company or are thinking about becoming one.