Limited business has a legal personality and it must have at least one shareholder.
Director must be over 16 years old. Limited Company pays Corporation Tax, that depends on profit and starts from 19%
Directors’ and employees’ earnings fall under PAYE and National Insurance regulations. Shareholder has a right to pay out dividends. A dividend is a part of a net profit paid to a shareholder. Tax-free threshold for dividends in year 2024/2025 is £500.
Current tax rules for over £500 is as follows:
|
Tax band |
Tax rate on dividends over £500 |
|
Basic rate |
8.75% |
|
Higher rate |
33.75% |
|
Additional rate |
39.35% |
Limited Company has to produce yearly financial statement to Companies House. The books must be conducted in accordance with current standards. Limited Company registration takes about 24 hours and its name has to be unique.
LTD can employ people, however, it will need to register for PAYE Scheme.
If its turnaround (not to be mistaken with profit) exceeds £90,000 (amount accurate at the time of writing 28th February 2025) it must register for VAT. It may do this without reaching the threshold if it is beneficial to the business.
Every Limited Company that decides to work with Pro-Accounting Office will receive the following services:
- Bookkeeping
- VAT Return
- Payroll
- Corporation Tax do HMRC
- Accounts for Companies House
- Director’s Self-Assessment
Attention! Full accounting service for Limited Company starts from only £45 per month.
For big Limited Companies: there is a possibility of our staff working in your offices. It saves your time – you don’t have to send or bring the documents to us. Our accountant comes to you regularly and does all the work on site.