Getting set up

Company formation

Starting as a contractor or freelancer can be both exciting and challenging, we can be on hand to help you at every stage of the process. Having an accountant from the beginning ensures your finances are well-managed, allowing you to focus on your business. Here are some key tips:

Business structure: Consider if you should operate as a sole trader or start a limited company.  This decision will impact your tax liabilities and responsibilities.

• Sole Trader: Personal and business finances are combined for tax purposes.
• Limited Company: Offers separate legal entity status, potentially more protection, and tax efficiency.

Managed finances: Setting up a separate business bank account, even as a sole trader, can allow you to clearly differentiate between personal and business transactions, making bookkeeping simpler. Keeping accurate records of all your income and expenses are crucial for both tracking your business performance and preparing for your tax obligations.

Tax responsibilities: It’s important to understand what taxes you are liable for and when they should be paid.

• Sole Trader: Submit via Self Assessment.
• Limited Company: Pay Corporation Tax on profits. Consider VAT as your business grows.

Professional support: While managing finances independently is feasible, hiring an accountant who specialises in your sector ensures that your money, taxes, and deductible expenses are accurately and efficiently handled. This provides an extra layer of security and peace of mind.

Schedule a free consultation

Setting up a Limited Company

Setting up a limited company (Ltd) means that your business becomes a separate legal entity, with its own financial and legal reporting requirements. This means you’ll have limited liability for any losses and debts incurred by your business. Operating as a Ltd can also project an image of stability and professionalism, this can make your business more appealing to potential clients and partners who may prefer to work with limited companies.

Benefits of a Ltd structure

Corporation tax: Ltds are subject to corporation tax, this tends to be a more competitive tax rate compared to Sole Trading, starting from 19%.

Extracting profits: Allocating salary and dividends correctly can optimise tax efficiency. Salaries allow more 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.

Name protection: When registering as a limited company with Companies House, your business name gains some legal protection and helps prevent others from choosing an identical name.

Ltd services we provide

• Company formation and setup with HMRC
• Bookkeeping and accounting software (like Xero)
• Payroll and dividend guidance
• Account preparation
• Corporation tax filings

The complexities of running a Limited Company requires professional guidance. We’ll make sure you stay compliant, save time, and know exactly how much you can take home each month. Contact us for personalised advice and support.

Our prices start from £89 + VAT per month

PAYE and VAT registration

We’ll guide you through the steps of registering for PAYE (if you're paying yourself or staff) and VAT (when your turnover requires it or when it’s tax-efficient to register early).

PAYE registration:

• Needed if you’ll be taking a salary through your limited company.
• We’ll register you with HMRC and get your payroll scheme set up.
• You’ll be fully compliant with Real Time Information (RTI) from day one.

VAT registration:

• We’ll assess whether it’s time to register either because you’ve hit the threshold (£90,000) or to take advantage of the Flat Rate Scheme.
• We’ll complete the registration and set up your first return dates.
• You’ll get advice on reclaiming VAT on business expenses and invoicing correctly.

We handle the paperwork, deadlines and HMRC setup, so you don’t have to.

Choosing software (Xero, FreeAgent, etc.)

We’ll recommend and set up accounting software that fits your business, keeping you compliant, making tax easier, and giving you real-time insight into your finances.

What we offer:

• Help choosing between Xero, FreeAgent, QuickBooks, or others based on how you work
• Full setup and configuration (chart of accounts, bank feeds, user access)
• App add-ons like Dext for receipts, GoCardless for payments, or integrations with your bank
• Training and support so you can use your software with confidence

We’re a Xero Gold partner and work with FreeAgent, QuickBooks, and others, so whatever your preference, we’ve got you covered.