Limited companies

A limited company is a recognised legal entity which has a separate legal existence from the person(s) who own the company (shareholders) and the officers (company secretary and directors) that are employed by it.

The company pays corporation tax on any profit it makes and can share the remaining profit after taxation to its shareholders (dividends).

  • Limited by shares – this is the most common type of limited company. The shareholders’ responsibilities for the company’s liabilities are limited to the value of shares they own but have not paid for.
  • Limited by guarantee – The members (not shareholders) agree to financially back it up to an agreed amount.

A limited company must be registered with Companies House and let HMRC know when the company starts trading. Each year the company must also:

  • Prepare statutory accounts
  • Send an Annual Return to Companies House
  • Send a Corporation Tax Return to HMRC

The company must also register for VAT if its sales exceed the VAT turnover threshold.

Directors of a limited company must also:

  • Complete a self assessment tax return
  • Pay tax and National Insurance through PAYE if the company pays you a salary

Brash & Co can assist with:

  • Incorporating your limited company
  • Preparing statutory accounts from the financial records of the Company
  • Choosing bookkeeping software
  • Calculation of corporation tax and prepare corporation tax return
  • Filing of Annual Return
  • Registering the company for taxes
  • Payroll

You can form your company through Brash & Co Accountants Ltd for only £75 - click here to find out how to incorporate your company.

Require more information?

If you would like more information or would like to speak to us direct then call us on 01704 551889. Or if you would prefer, ask us a question online.

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Brash & Co Accountants Ltd

Head office: Birkdale Business Centre, Weld Parade, Southport, Merseyside, PR8 2DT. Telephone 01704 551889
Southern office: Unit 93 Trident Court, 1 Oakcroft Road, Chessington, Surrey, KT9 1BD. Telephone 0203 475 3944

Registered in England & Wales. Company number: 06781340

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