"The staff at London 1st are very friendly and helpful in managing all your limited company needs" - Michelle Pullen
Limited Companies
London 1st can help you determine which tax structure is right for you and help you make informed decisions about structuring your limited company to maximise your earnings.
What is a Limited Company?
A Limited Company is a legal structure that can be set up in order to carry on with business. A company is treated as a separate legal entity and has a different set of rules for taxation than an individual. A limited company offers limited liability for those that run it, meaning the owner/director/shareholder is not liable to pay any money owed by the business unless it can be proven that they were dishonest or fraudulent.
How is the Company Set Up?
London 1st can assist you in setting up your limited company, it’s as simple as either doing it directly on our online company formation page or calling a consultant. This service is quick, and easy to use, you are guaranteed same-day company formations. We are even able to assist in setting up your business bank account and/or VAT registering your company.
Why Use a Limited Company?
A limited company offers protection to directors and shareholders against liability for the company's debts and offers flexibility for structuring your income most effectively. You can also claim expenses that are incurred during the course of your business against the company, thereby reducing the company tax. Companies are generally better recognised structures in which to win business and are a preferred structure for contractors.
How do you remunerate yourself through a Limited Company?
The most tax efficient way to run your company is to pay a small salary and the remainder of the company profits as dividends. There will be less National Insurance to pay on a smaller salary and dividends are not subject to National Insurance.
However, if you supply personal services such as many contractors do, you will have to be aware of legislation called IR35 . See our IR35 centre for more information.
If you are a contractor starting out we can help you plan your remuneration and provide ongoing advice and support to ensure you get the most out of your time contracting. See our contractor accounting solutions and company formation services.
If you are trying to set up your own small business we can help you with your business plan and get you up and trading with our Business Start Up Bundle. London 1st can also provide ongoing support with our range of services.
Please contact one of our trained consultants for further details.
Statutory & Legal Requirements and Obligations
When you are running a Limited Company there are certain rules for setting up a company, certain obligations dates and deadlines where documents and returns need to be filed with the relevant authorities. The company has several statutory requirements during the course of the year.
Statutory Requirements
- Financial Statements (due within 9 months and 1 day of the company year-end)
- Annual Shuttle Return
- P35 Annual Employers Return
- P38a Employers Supplementary Return
London 1st is able to assist contractors with completing the statutory requirements by providing a compliance bundle service; this can be a one off payment or part of a packaged service.
Legal requirements
- The company must have at least one director
- Registered office* that is registered in England and Wales
- Business Bank account – as a limited company is a separate entity to the director
*The registered office can be your home address or the office of London 1st. We suggest that you check your lease agreement to determine whether there is any problem with having a business registered at the property.