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Why setup as a Limited Company

Want to know more?

Limited company guide download

Our free guide is a great starting point if looking to set up a limited company.

Download Our FREE Guide

If you are thinking of setting up and running your own Limited Company and don’t know where to start, you’ve come to the right place. If you have a question or simply want some advice, make an enquiry for free, no obligation help and support.

 

Advantages of working via your own Limited Company

  • Credibility – clients view a Limited Company in a more positive light
  • Higher take-home pay – being paid in regular dividends means you pay less tax and take home more money
  • Lower personal risk – you are protected from the threat of personal financial loss due to the separation between you and the company
  • Better tax planning – you can benefit from tax savings thanks to the various tax planning opportunities available to you.

Brookson's all-inclusive service helps you manage your Limited Company

  • Administration – you can manage the submission of Annual Accounts, Corporation Tax Returns and VAT Returns by accessing the easy to use online portal called connect Brookson
  • Costs – we keep your costs under control and help avoid any unnecessary late penalties fees to HMRC
  • Directorship – your obligation under the Companies Act 2006 are managed with the advice and guidance of the experts at Brookson
  • IR35 – we help ensure you are not captured by the ‘intermediaries legislation’ with an IR35-friendly contract which demonstrates that you are genuinely self-employed. 

What are the requirements?

Setting up, owning and operating a limited company is a major commitment. Once you decide to go for it, you will be responsible for each and every step of the process and for ensuring these are all managed and completed correctly. There are strict legislative deadlines and harsh penalties should these be missed. 

  • Incorporation - This is the first stage of the process, where you create your own company. We will cover the detail later in the document, but registration in itself is a relatively simple process. You can do it yourself, your accountant could do it for you, or you could employ the services of a company formation agent. Either way, the objectives are the same, to register your new company and all the details at Companies House. Incorporating lends credibility to the business. It also means you have to appoint a director who is ultimately responsible for running the business.
  • Directors responsibilities - It is the director’s responsibility to ensure that the company meets it obligations and that it is run in accordance with The Companies Act 2006 (and re-inacted). According to this act, all Private Limited Companies must have at least one director. Typically, you will perform this role yourself. You need to ensure that the company complies with company law, that it accounts properly with full disclosure, that it makes all statutory returns, is adequately insured and meets all health and safety obligations.
  • Administration and compliance - Ensuring the company meets all of these obligations and complies with law creates a degree of administration. You will be responsible for filing company accounts, for arranging payment of Corporation Tax, National Insurance and PAYE obligations. Depending upon the turnover of your business, you may also have to file VAT returns. These need to be done correctly, to the required specifications by the imposed deadlines and any tax due must be paid on time. Being the director of a business carries considerable responsibility. A specialist accountant such as Brookson will work with you to minimise the administration.

What are the benefits?

Whilst running a limited company does have its fair share of responsibility, and the administrative responsibilities are certainly greater than other ways of working, there are many advantages too.

  • Limited liability - In simple terms, if you run a Limited Company you are protected should things go wrong. Assuming all rules have been followed, as a director you will not be personally liable for any financial losses made by the company.
  • Separate entity - A Limited Company is a legal entity in its own right. This means that everything from the company bank account, to the ownership of assets relates to the business. They are totally separate from the interest of the directors and shareholders.
  • Tax - As a director and shareholder of a limited company you could elect to take the majority of your income in the form of dividends, which enables you to manage your own tax liability and potentially save on National Insurance costs.
  • Perception - If you plan to do business with larger companies, it can help if you are working via a Limited Company as it gives off a more professional image. In some industries, it may even be a mandatory requirement as they will not deal with sole traders or partnerships.
  • Protection - As well as the limited liability protection mentioned above, once you have successfully registered your company, your company name is protected by law. Companies House has very stringent rules for the naming of companies so no one else can use the same name as you, or anything deemed too similar.
  • Ownership and succession - As the sole shareholder in your business, you own the business. However, a Limited Company can easily transfer ownership of shares, or existing shareholders can sell a stake in the company to other parties at any time. If for example a shareholder wishes to retire, or bring a new director on board, it is far easier to transfer ownership, or part ownership, of a Limited Company than it is with a less formal business structure.
  • Take home pay - It’s safe to say that this is the area where you can really reap the rewards of running your own Limited Company. The only person you need to pay as a Limited Company is yourself – combined with the tax efficiencies on offer, this means you can keep anything from 81 to 86 percent.

How Brookson can help

Whether you are a contractor, freelancer or self-employed professional, we believe that you, and we, should always know where your business is at. We have a great team of people who work closely with you, every step of the way to help you work more efficiently and to make more of your earnings potential.

Brookson will help you manage your limited company accounts and guide you through the legislation and compliance, you benefit from the reassurance of knowing that you are receiving the best accountancy support and that you are working compliantly at all times.

Our accountancy, tax advice and friendly, proactive Customer Services Team take away as much of the administrative burden as possible and provide the guidance you need to meet your responsibilities.

We relieve the time and hassle of running your limited company with our ground-breaking Connect technology, which updates your company accounts on a daily basis*, allowing you to make informed decisions by giving you peace of mind knowing that you are always up-to-date and totally compliant with HMRC guidelines.

Find out more about what our all-inclusive limited company service offers contractors, freelancers and self-employed professionals a complete accountancy service, backed by our reputation for reliability, top class advice, innovative technology and an excellent Customer Services Team.

To discuss your working options & arrange your FREE ways of working consultation, including a tailored take home pay illustration:

Call 0800 230 0213 and talk to one of Brookson's Specialist Advisors or fill in the form below and one of their advisors will be in touch.

 

"When I started contracting, I was daunted by the amount of administration that I thought I would need to complete had I set-up through a limited company, so I started through an umbrella. However, about 6 months in, I investigated my options and decided that I would operate through a limited company. Using the solution offered through Brookson has been extremely streamlined with almost no administrative overhead.”

David Falder

*Excludes weekends and public/bank holidays.