Many self-employed individuals or partnerships choose to form a limited company.

• Limited liability helps to protect you from having to pay business debts with your personal assets, such as your home.
• Your clients may have requested your services through a company, probably in part for tax reasons.
• Going limited can therefore make you more competitive.
• Partly due to the above, limited status could show more credibility.
• The most common reason, however, is the saving in national insurance.

There are drawbacks to forming a company:

• There are additional administrative costs and higher accountancy fees.
• Late filing penalties with Companies House can be heavy. For unpaid penalties, they can freeze the company bank account or even prosecute.
• The financial position of the company is on public record.
• If the business is making a loss, say in the opening years, then the tax reliefs are less flexible.

PAJ Accountants can help you decide on the best course of action and if you decide to run the business through a company then we have a specialist service for:

• Forming a company, online and often in the same day.
• Corporation tax registration with HMRC.
• Correspondence with the bank regarding account opening.
• Preparation of year end accounts to comply with the Companies Acts.
• Preparation of company Tax Return.
• Calculation of corporation tax.
• Annual registered office and company secretarial service.
• Advice on choosing a year end and on dormant periods.
• Advice on registering for VAT and on VAT schemes for small businesses.
• Advice on the personal service company legislation (previously known as IR35.)

Please contact us today for your free initial consultation and discover how we can help.