Q. What is a limited company?

A. A limited company has a legal entity separate from that of its owners. The shareholders of the company are not personally responsible for its liability, which means they do not risk their personal assets if the company was to come into liquidation or any debt.

Q. What do I need to set up a limited company?

A. To set up a limited company you will need the name and the address of the company, the details and address of the directors and, the number of the shareholders of the company and their details.

Q. What kind of accounts and records should a limited company maintain?

A. All companies are required to keep a full record of income, expenditure, liabilities, and assets. They will help your accountant when preparing company’s annual accounts.

Q. Why can trading through a Limited Company, as opposed to self-employment, be more tax efficient?

A. You can pay yourself in the form of Dividends which do not attract either employee or employer’s national insurance.

Q. How much tax will I pay being self-employed?

A. Being self-employed means you will be paid the whole amount without any tax removed, you’ll need to put some aside to cover your taxes. As a general rule, we recommend you put 30% of everything you earn to one side, and this should cover your tax and National Insurance.

Q. Do I have to pay national insurance?

A. If you are self-employed you are responsible national insurance contributions on earning above the small profit threshold for that year.

Q. What is a self-assessment?

A. Self assessment is where you make your own assessment to income tax, corporation tax, or capital gains tax as appropriate. You make a self-assessment when you file your annual tax return by completing the self-assessment panel in that form.

Q. How do I register as self-employed?

A. You will need to register with HMRC. For a newly self-employed person failure to register within three months will result in a fine.

Q. Can I claim for travel expenses?

A. You can claim for your car, rail travel and any other business related travel costs you incur. Make sure that you keep hold of any receipts, to prove that the expense was incurred.

Q. How do I pay tax?

A. You will pay your tax by doing a tax return. You tell HMRC about your income and your expenses, which ultimately gives them details of your profit figure, and this is what you will be taxed on.

Q. What are statutory accounts?

A. These are year-end accounts that are given to the relevant authorities. It is useful to appoint an accountant or advisor who will prepare these accounts for you and gives you the appropriate information.

Q. What is management accounting?

A. Its analysing costs, producing realistic budgets and then comparing these to your company’s actual performance on a periodic basis.

Q. What’s the difference between management accounting and what my accountant does at the end of the year?

A. Your financial accountant focuses on Tax. A management accountant, on the other hand, is there to help you throughout the year by regularly providing you with useful information that will enable you to make good decisions.

Q. What is a limited company?

A. A limited company has a legal entity separate from that of its owners. The shareholders of the company are not personally responsible for its liability, which means they do not risk their personal assets if the company was to come into liquidation or any debt.

Q. What do I need to set up a limited company?

A. To set up a limited company you will need the name and the address of the company, the details and address of the directors and, the number of the shareholders of the company and their details.

Q. What kind of accounts and records should a limited company maintain?

A. All companies are required to keep a full record of income, expenditure, liabilities, and assets. They will help your accountant when preparing company’s annual accounts.

Q. Why can trading through a Limited Company, as opposed to self-employment, be more tax efficient?

A. You can pay yourself in the form of Dividends which do not attract either employee or employer’s national insurance.

Self Employment

Q. How much tax will I pay being self-employed?

A. Being self-employed means you will be paid the whole amount without any tax removed, you’ll need to put some aside to cover your taxes. As a general rule, we recommend you put 30% of everything you earn to one side, and this should cover your tax and National Insurance.

Q. Do I have to pay national insurance?

A. If you are self-employed you are responsible national insurance contributions on earning above the small profit threshold for that year.

Q. What is a self-assessment?

A. Self assessment is where you make your own assessment to income tax, corporation tax, or capital gains tax as appropriate. You make a self-assessment when you file your annual tax return by completing the self-assessment panel in that form.

Q. How do I register as self-employed?

A. You will need to register with HMRC. For a newly self-employed person failure to register within three months will result in a fine.

Q. Can I claim for travel expenses?

A. You can claim for your car, rail travel and any other business related travel costs you incur. Make sure that you keep hold of any receipts, to prove that the expense was incurred.

Q. How do I pay tax?

A. You will pay your tax by doing a tax return. You tell HMRC about your income and your expenses, which ultimately gives them details of your profit figure, and this is what you will be taxed on.

Q. When do I have to charge VAT?

A. You will not need to charge VAT on any of your goods or services until you have reached the VAT threshold amount of £82,000. Once over the threshold amount, it is mandatory that you register for VAT and start charging VAT on your goods and services, from the day you have registered.

Q. What is a limited company?

A. A limited company has a legal entity separate from that of its owners. The shareholders of the company are not personally responsible for its liability, which means they do not risk their personal assets if the company was to come into liquidation or any debt.

Q. What do I need to set up a limited company?

A. To set up a limited company you will need the name and the address of the company, the details and address of the directors and, the number of the shareholders of the company and their details.

Q. What kind of accounts and records should a limited company maintain?

A. All companies are required to keep a full record of income, expenditure, liabilities, and assets. They will help your accountant when preparing company’s annual accounts.

Q. Why can trading through a Limited Company, as opposed to self-employment, be more tax efficient?

A. You can pay yourself in the form of Dividends which do not attract either employee or employer’s national insurance.

Self Employment

Q. How much tax will I pay being self-employed?

A. Being self-employed means you will be paid the whole amount without any tax removed, you’ll need to put some aside to cover your taxes. As a general rule, we recommend you put 30% of everything you earn to one side, and this should cover your tax and National Insurance.

Q. Do I have to pay national insurance?

A. If you are self-employed you are responsible national insurance contributions on earning above the small profit threshold for that year.

Q. What is a self-assessment?

A. Self assessment is where you make your own assessment to income tax, corporation tax, or capital gains tax as appropriate. You make a self-assessment when you file your annual tax return by completing the self-assessment panel in that form.

Q. How do I register as self-employed?

A. You will need to register with HMRC. For a newly self-employed person failure to register within three months will result in a fine.

Q. Can I claim for travel expenses?

A. You can claim for your car, rail travel and any other business related travel costs you incur. Make sure that you keep hold of any receipts, to prove that the expense was incurred.

Q. How do I pay tax?

A. You will pay your tax by doing a tax return. You tell HMRC about your income and your expenses, which ultimately gives them details of your profit figure, and this is what you will be taxed on.

Q. When do I have to charge VAT?

A. You will not need to charge VAT on any of your goods or services until you have reached the VAT threshold amount of £82,000. Once over the threshold amount, it is mandatory that you register for VAT and start charging VAT on your goods and services, from the day you have registered.