The limited company route is the most tax-efficient way of operating for most business types. As a director and shareholder, you have the flexibility to draw a portion of the funds as dividend rather than salary. This way, your tax burden is reduced and you can exercise more control over your finances too.

However, the administration involved in operating as a limited company can often be time consuming and complex. Moreover, you will lose some of your privacy because the directors or shareholders personal details and abbreviated accounts are open to public scrutiny. Inspite of these little disadvantages, there are many distinct advantages of operating as a limited company.

Advantages of operating a limited company

Limited liability - The Company is a separate legal entity and can protect your personal assets. If for any reason, your company fails to pay all of its debt or ceases trading, your personal assets are still protected from the business creditors.

Tax savings - Directors can apportion some of the profits as dividend instead of salary. Since dividends do not attract national insurance, trading as a limited company can be more tax efficient.

Status and appearance - Operating as limited company makes the business appear bigger and more professional. Shareholder succession is also more straightforward.

How Top Branch can help you?

We will sit down and discuss with you about your individual requirements and prepare a proper risk assessment, helping you decide on the best way forward for your business. Our risk assessment will explain how the tax arrangements would be beneficial and help you make the sensible choice. We offer,

• Free advice on setting up and running your limited company
• Same day company formation – normally within 2 hours
• Expert advice from a dedicated manager, 7 days a week
• All tax returns (VAT and year-end) completed for you
• We will remember all your quarterly and annual tax deadlines
• Unlimited tax planning support and free software

Unlike other providers who charge additional fee for each service, at Top Branch we provide everything you need for a low fixed monthly fee, and no hidden fees. Simply make an enquiry on our website or call us and we'll do the rest.