Running a successful limited company typically involves huge amounts of responsibility. Limited companies have various legal responsibilities and there are fines and penalties for getting it wrong. At Muhit & Co, a leading London based accountants, our service is designed to ensure limited companies always stay on top of their tax and accountancy commitments.
It’s common for those running their own limited company to feel overwhelmed, with a multitude of constantly changing variables and concerns to deal with on an ongoing basis. Here at Muhit & Co, specialists accountants for Limited companies, our team deliver expert financial advice and support to Limited Companies. Whether you are a small or medium business or even a contractor working as a Limited company, our specialist SMB accounting team can assist you overcome all the legal and compliance factors associated with running a Limited Company.
Our accountancy service for Limited companies include but are not limited to:
We aim to keep everything simple. We provide an all-inclusive service which helps you to get set up, maximise profits and be more tax efficient, giving you greater peace of mind and letting you concentrate on growing your business.
We take a proactive approach in accounting and finance. Anticipating regulation changes we are always prepared for what’s to come and with the right set of advise for you to save you both money and time.
Our accountants are hand-picked to manage your accounts, to ensure you receive the best financial support possible. Your accountant will keep you in line with the demanding tax laws and monitor your finances on a regular basis.
No. Unless you sign a personal guarantee or trade fraudulently. A limited company is “limited” in the sense that its owners are not liable for its debts. Some people see a limited company as an insurance policy, especially for a new or high-risk business. Many people lose their savings and other assets because they started out without “being limited”. You need to assess the risk of your situation.
A Limited company is run by the directors and the shareholders own it. Directors are answerable to shareholders and are legally bound to act in their best interests. You only require one member and one director, who can be the same person.
Directors may receive a wage under PAYE and shareholders (who may also be directors) are entitled to dividends if there is enough profit in the company, subject to the Companies Act. You should take advice from a suitably qualified accountant prior to commencing your financial arrangements as mistakes can be costly in terms of tax.
An accountant is not a legal requirement, although it is usually advisable to seek the services of a suitably qualified accountant e.g. Chartered Certified Accountant, as they will prevent you from making costly errors and almost certainly reduce your tax charge. There are statutory thresholds for audits, in practice only applying to companies with several million pounds of turnover. Exact figures can be found at Companies House or by asking your accountant.
There are a number of self-employment options for you to choose from, and your decision will largely depend on how you want your business to operate and what you hope to achieve as a self-employed worker. Although limited companies are typically the most profitable option, this doesn’t necessarily mean it’s the right path for you, and you need to think carefully about how you’d like to set things up.
The IR35 legislation is designed to prevent workers from avoiding tax through ‘disguised employment’. This is where a self-employed freelancer operates as a limited company, and therefore receives the accompanying tax benefits, but is doing the same job and working under the same constraints as an employee.
A limited company exists as an entirely different entity from its owner. Whilst becoming more tax efficient is an obvious benefit, limited companies also protect their owners from a legal standpoint moving debt and some of the financial responsibility onto the company, keeping the owner’s assets separate from the company’s performance.
