Operating as a Limited Company (LTD) projects a professional and stable image, this can make your business more appealing to potential clients and partners who may prefer working with LTDs.
Operating as an LTD also comes with many tax advantages, on this page we’ll break some of them down:
Corporation tax: LTDs are subject to corporation tax, this tends to be a more competitive tax rate than as a Sole Trader, starting from 19%.
Extracting profits: Use salary and dividends to optimise tax efficiency. Salaries allow control over your tax band, while dividends are taxed at a lower rate and are not subject to National Insurance contributions.
Claiming expenses: LTDs can claim a wide range of business expenses, from office supplies to travel costs, reducing taxable profit.
Pension contributions: Make pre-tax contributions to pension schemes, securing your future and decreasing taxable profit.
Family employment: Employ family members to distribute income, ensuring salaries are justifiable for the work performed.
VAT Flat Rate Scheme: Simplifies VAT reporting and can lead to savings, especially for service-oriented businesses.
Contact us
The complexities of running a Limited Company requires professional guidance. Our accounting firm is here to help you maximise these benefits, ensuring compliance and optimising your financial outcomes. Contact us for personalised advice and support.