The Practical Guide to Limited Company Tax
If you have chosen to operate your business as a limited com...
By Jonathan London on 9th January 2014
Setting up a Limited Company is one of the most popular ways for contractors and freelancers to structure their business. Although it comes with legal responsibilities, the advantages outweigh these.
At Boox, we’ll help you take care of your Limited Company director responsibilities, leaving you free to run your business.
Download our free guide to setting up and running a limited company by clicking the link at the top of this page.
The main benefit of operating through a Limited Company is the tax planning benefits it affords the directors and shareholders of the business.
When operating through your own Limited Company, it’s profits are subject to Corporation Tax at 20%. You can then choose to take a low salary, in combination with extracting the profits from your business in the form of dividends. Dividends are taxed separately and are not subject to National Insurance Contributions (NICs), thus minimising the amount of NICs you will need to pay HMRC.
Other benefits include:
Setting up a Limited Company is a simple three-step process.
1. Your company name – choose a name that’s unique. Companies House has a list of words and expressions that you can’t use in your company name.
2. Documentation – there are three documents to submit:
3. Registration – Once Companies House has checked all your documents, it will issue your Certificate of Incorporation.
Your alternative to this is to get someone to deal with this for you. If you decide to sign up for one of our accounting services for example, we’ll set up your business for free. All you need to do is think of a name, and we’ll do the rest.
For more information to understand how to go about getting started and setting up your new business, click on the link at the top of this page to download our free guide.
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If you need a little help to find the right accountancy service, don’t worry.
Thousands of contractors, freelancers and locums turn to Boox for help and advice with their limited company accounting. They love our personal service and app.
Specialist accounting for sole traders and the self employed, Boox combines easy online tools with expert support to take away the stress of handling your accounts.
Our combination of market-leading accounting software and expert personal advice gives you greater financial control and more time to grow your business.