All UK limited companies must be registered at Companies House whose main purpose is to maintain the records of registered companies and make this information available to the public. They also hold some discretionary powers on behalf of the Secretary of State, particularly with regard to the naming of companies.
Shareholders own a limited company but its run by its directors. If you have your own limited company you are both a director and a shareholder.
Its own articles of association govern your company. These are the internal rules by which the company will be managed. Every company must have articles by law and all members of the company must adhere to these rules.
It is a legal entity in its own right with its own legal rights and obligations. That means any profits and losses belong to the company; so the business itself can continue regardless of the death, resignation or bankruptcy of the shareholders or directors.
A limited company is so called as it offers limited liability. This means the company (as its own legal entity) is liable for its debts. The shareholders and directors are not personally liable. Their liability is limited to paying to the company what they have agreed to pay for their shares. This is very different for example, to a Sole Trader, who is held personally responsible for any debts in the business. In the case of a sole trader, any outstanding debts must be met from personal assets.
Once you register your limited company at Companies House you take on a degree of responsibility. If you are still considering the best way to run your business, Brookson provides a number of Free Guides that will help you make the correct choice.
Running your own limited company can sometimes appear daunting, but it’s also an exciting challenge and investment in your future. You should be careful to choose an accountancy partner who can help through each of the stages, from setting up your business to helping with the ongoing administration.
The information we provide in this knowledge centre focuses on key elements of running a Private Limited Company.
Being the director of a limited company carries considerable responsibility. In this section we take you through the Directors’ Role, what’s involved in Company Accounting and look into several general compliance subjects. These cover submitting an Annual Return, Changes to the Companies Act 2006, employment status in the form of IR35, a look at payroll legislation changes known as RTI and introduce you to some Frequently Used Forms you will encounter.
Claiming your business expenses is a fundamental part of running your company. They are one of the main elements to be offset again your company income in the form of Direct Expenses, and personal income as Reimbursed Expenses.
Your company faces an obligation to comply with HMRC rules regarding a range of tax regimes. In this section we look at Corporation Tax alongside Capital Allowances, National Insurance (NIC) and Pay As You Earn (PAYE), Value Added Tax (VAT) and the Flat Rate for VAT Scheme. We also address issues that have implications for your company’s tax position; Directors Fees and the Construction Industry Scheme (CIS).
There are many issues around personal taxes. Key is understanding how the income you earn personally is taxed through Self-Assessment, how Dividends from your company work and what other tax and tax relief elements can affect your tax situation.
Here we address one of the main myths around Tax Planning, providing an overview for good tax practices, consider some Tax Beneficial Investments and look at ways of Extracting Profits from your Company.
Business Insurance protects both your business and yourself against the unexpected. Sometimes it may be a legal requirement. In this section we explain how you can cover Potential Liabilities by implementing Professional Indemnity, Public Liability, Employer’s Liability and Directors' and Officers' Liability insurances. Personal Income Security is addressed with Personal Accident Cover and Business Equipment Insurance.