Should I Have a Limited Company?
... from operating as a Limited Company is the owner of a business can choose to pay themselves a lower wage and take money out of the company as dividends, providing they are a shareholder and the company has sufficient retained profits. This can be advantageous as there is currently no National Insurance on dividends. As an employee of the company you would still need to pay tax and National Insurance on any salary you are paid via PAYE. You would also need to complete a tax return if you are a Company Director. The company will need to pay Corporation tax on the company's profits. The rules ... Before your decide whether your business should be a limited company or not you should think about the advantages and disadvantages that can come with this sort of set up. A limited company is a separate legal entity and a primary benefit is Limited Liability. Basically, this means that you would normally avoid being personally responsible for the company's financial obligations. However, this can be somewhat misleading as your main creditor is likely to be a bank and they normally require directors be personal guarantors should the company fail. There is also currently a real tax benefit to be achieved from incorporating as the tax system ...
Tags: Online Accounting | Online Accountant | Online Accountants | limited company | limited companies | |
Tags: Online Accounting | Online Accountant | Online Accountants | limited company | limited companies | |