Limited companies

The tax system for companies

How the tax system works for companies.

Forming a limited company

Although you can set up a limited company by buying a company online or 'off the shelf', it is usually advisable to seek our professional advice. There are so many options and pitfalls we strongly recommend working with us on your new business venture. Is it advisable to use a limited company? What are the tax benefits and consequences?

Pros and cons of limited companies

We are often asked, 'Should I form a limited company?' The reality is that there is no easy answer. Each situation has to be judged individually. Our guide provides an overview of some of the key issues relating to a business trading as a limited company.

Buying a company 'off the shelf'

If time is an important factor, you can consider buying a ready-made company. The procedure will depend on the company formation agents', including online agents, requirements.

Tax and the company car

Details of how the tax system charges tax on a company car.

Company bonus or dividend?

In many small companies, the owners are also the directors, and this gives importance to how income is extracted from the company.

Tax-saving strategies

Expenditure incurred before the company year-end might reduce the current year's tax liability instead of next year's.

Interest and tax payments

HMRC charge interest on underpayments of tax, and pays interest (repayment supplement) on overpayments.

Companies Act

The Companies Act comprises approximately 1,300 sections.

Companies House - forms you need to know about

There are over 100 company-related forms prescribed. We list below these and include a link to all the forms which can be downloaded direct from Companies House.

The law and directors' responsibilities

Who is a director and what are their legal responsibilities?

Statutory records

It is essential that you keep your company's statutory records up-to-date. Do not underestimate the importance of these records - they are definitive proof of the company's legal existence and its members.

The company secretary

The position of company secretary in a private company is now optional. Thus a company can operate with a sole director.

Getting the company struck off

A private company (not subject to insolvency proceedings) can apply to the Registrar of Companies to be struck off the register and dissolved.