Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Gleaming windows on March 02, 2010, 08:11:07 pm
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Anyone operate as Limited company or Public Limited ?
If so why and what advantages?
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one of the advantages of being ltd is that if it goes tits up, all debts are limited to the company and you dont lose your house,
but a lot of banks want director guarantees for loans, so u still got to pay them back
u need a company secretary and a director, one advantage is if you employ people and get a speeding ticket, that doesnt identify driver, get secretary to say dont know who was driving van, and get fine and no points ;D
if you are a director of the company, and pay your self, u have to fill out a tax return for you as well as company
every one i know who has gone ltd says it was a waste of time and more hassle
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come on peoples...... i want 2c ur answers..... PLEASE ;D ;D
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I see steve is limited. This thread might be his chance to shine.
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I see steve is limited. This thread might be his chance to shine.
come on steve..... were waitin ::) ::) ::) ;D
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hmm, then you have to publish your year results to companies house so everyone can see what you are earning
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hmm, then you have to publish your year results to companies house so everyone can see what you are earning
WOT :o!!! IS THAT TRUE ::)??? OR U MESSIN ABOUT ?????
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My wife spoke to our accountant about going ltd. For us its something we will do in the near future. Best thing I would say is to speak to your accountant or an accountant to see if it will suit your business.
It has its advantages for sure, not everything suits everyone.
Plc is a public listed company on the stock exchange that any tom dick or harry can buy shares. Your talking BIG business there. I believe MITIE are a plc, so unless your planning a very rapid growth, don't worry about plc.
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Yes once your ltd your accounts become public knowledge. Maybe even if your not ltd yet, but I'm not too sure about that one.
I remember watching the apprentice and they interviewed one of the women and said her accounts were different to her application form. She asked how they knew and she was told that they had a copy of her accounts as they were on public record.
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hmm, then you have to publish your year results to companies house so everyone can see what you are earning
WOT :o!!! IS THAT TRUE ::)??? OR U MESSIN ABOUT ?????
yes, google companies house website. You need to send in your end of year accounts.
On the plus side, you keep your business name protected. No one else can register the same name as you can when a sole trader.
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OH SOD THAT THEN... IVE GOT A VERY VERY MONEY HUNGRY X WIFE :o :-[
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think going ltd is fun wait till u go vat registered
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Yes once your ltd your accounts become public knowledge. Maybe even if your not ltd yet, but I'm not too sure about that one.
I remember watching the apprentice and they interviewed one of the women and said her accounts were different to her application form. She asked how they knew and she was told that they had a copy of her accounts as they were on public record.
No legal requirment to submit your Balance sheet & P&L to CH if you are a sole trade. Just need to do your tax returns :(
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Yes once your ltd your accounts become public knowledge. Maybe even if your not ltd yet, but I'm not too sure about that one.
I remember watching the apprentice and they interviewed one of the women and said her accounts were different to her application form. She asked how they knew and she was told that they had a copy of her accounts as they were on public record.
No legal requirment to submit your Balance sheet & P&L to CH if you are a sole trade. Just need to do your tax returns :(
Wasn't too sure, so thought best to say I wasn't sure on that one.
Thanks for that info though :)
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hmm, then you have to publish your year results to companies house so everyone can see what you are earning
Not true unless your turnover is above 2m. If it is below you send in an abreviated set from which it is impossible to tell what you are earning.
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See here for example - http://wck2.companieshouse.gov.uk/2c0ee8b3fa07eedfbde5b03c6bb47fa1/compdetails
Last Accounts Made Up To: 31/05/2009 (TOTAL EXEMPTION SMALL)
The TOTAL EXEMPTION SMALL is the part that tells you the accounts are not a full set.
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See here for example - http://wck2.companieshouse.gov.uk/2c0ee8b3fa07eedfbde5b03c6bb47fa1/compdetails
Last Accounts Made Up To: 31/05/2009 (TOTAL EXEMPTION SMALL)
The TOTAL EXEMPTION SMALL is the part that tells you the accounts are not a full set.
Oh that is priceless er ... very helpful davids3511! ;D
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See here for example - http://wck2.companieshouse.gov.uk/2c0ee8b3fa07eedfbde5b03c6bb47fa1/compdetails
Last Accounts Made Up To: 31/05/2009 (TOTAL EXEMPTION SMALL)
The TOTAL EXEMPTION SMALL is the part that tells you the accounts are not a full set.
thats not a fair example, whoever this company is, they are ltd, but just in name, they are not earning the amounts that most ltd companies earn ( or aim to earn )
my guess is its just some1 attempting to look the part ( being ltd ) , but as most know, its not hard to find the details out from companies house, so when this AQUA TECHNOLOGY LIMITED act the big boys for contracts, when a little research is done it doesnt add up and they look what they are ( a company trying to look big )
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See here for example - http://wck2.companieshouse.gov.uk/2c0ee8b3fa07eedfbde5b03c6bb47fa1/compdetails
Last Accounts Made Up To: 31/05/2009 (TOTAL EXEMPTION SMALL)
The TOTAL EXEMPTION SMALL is the part that tells you the accounts are not a full set.
thats not a fair example, whoever this company is, they are ltd, but just in name, they are not earning the amounts that most ltd companies earn ( or aim to earn )
my guess is its just some1 attempting to look the part ( being ltd ) , but as most know, its not hard to find the details out from companies house, so when this AQUA TECHNOLOGY LIMITED act the big boys for contracts, when a little research is done it doesnt add up and they look what they are ( a company trying to look big )
well it adds up
they are a ironics user ::) ::) i wonder if they were taught the ltd trick from ironics window cleaning school
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spot on mattress ;D ;D ;D ;D ;D
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You can have a different trading name to your registered name, garder & co trading as ladder garder window cleaning. That way competitors will have a job finding you on companies house, but again it would only be garder & co thats name would be protected.
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See here for example - http://wck2.companieshouse.gov.uk/2c0ee8b3fa07eedfbde5b03c6bb47fa1/compdetails
Last Accounts Made Up To: 31/05/2009 (TOTAL EXEMPTION SMALL)
The TOTAL EXEMPTION SMALL is the part that tells you the accounts are not a full set.
Oh that is priceless er ... very helpful davids3511! ;D
Bugger!
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thats not a fair example, whoever this company is, they are ltd, but just in name, they are not earning the amounts that most ltd companies earn ( or aim to earn )
my guess is its just some1 attempting to look the part ( being ltd ) , but as most know, its not hard to find the details out from companies house, so when this AQUA TECHNOLOGY LIMITED act the big boys for contracts, when a little research is done it doesnt add up and they look what they are ( a company trying to look big )
As usual matt, you dont know what your talking about.
A "small" limited company is one that turns over less than £5.6 million. "Small" have whats called a small companies exemption, they only have to file abbreviated accounts. I have looked into this as I am becoming limited later this year, as there are several tax advantages.
My advice Matt, is that when you don't know what you're talking about, just say nothing.
someone explain it to him ::) ::) ( use simple terms though ) ::), look a little deeper and you will get the reason of my post ::) ::)
as i happens , i have run a ltd company as a builder , so funny enough, i understand it ( though a fair bit has changed since then )
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thats not a fair example, whoever this company is, they are ltd, but just in name, they are not earning the amounts that most ltd companies earn ( or aim to earn )
my guess is its just some1 attempting to look the part ( being ltd ) , but as most know, its not hard to find the details out from companies house, so when this AQUA TECHNOLOGY LIMITED act the big boys for contracts, when a little research is done it doesnt add up and they look what they are ( a company trying to look big )
My advice Matt, is that when you don't know what you're talking about, just say nothing.
oh and as you seem to miss alot ( more than a blind person ) you might want to take your own advice and just say nothing
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Don't quite understand why Matt is being bashed, even if he can be a socialist, we all spout on here about things we know nothing about.
My reading was that like me he couldn't weight 'steve' up. He seems to have deleted but i would have liked to have known more.Having to take a few more insults would have been a price worth paying for me.
And thats because i'm nosey, the website had a pic of reuben pretty much as the brochure.Who would do that? Why? I would want a pic of me and my own van.
Ltd? he only had 500 custys.How did that work, is limited like vanity publishing. One guy that used to post on here was limited and he only had a back pack, and two years in posted with pride that he'd paid for a foreign holiday.
My knowledge of limited is very err limited, but i heard it was good for tax once you earned over about forty k, and got better as you went past 80k as you could pay yourself dividends and get taxed at a lower rate.
The problem seems to be not knowing the difference between a directors dividend and being a divv.
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How can you possibly make the assertion that because a company has the small company exemtion that it is "some1 attempting to look the part" and "a company trying to look big"
You simply cannot.
The only thing that is possible to conclude from that is that they are turning over less than £5.6 million. Not, as you seem to think, that the are just trying to look big.
I hope you say some more, I'm interested to know just how much you are willing to comment on a subject you clearly know nothing about. This thread illustrates my point about you perfectly.
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£5.6 million does appear to be the threshold point that Companies House view as being when you move from small to umm, big?
Im not in that category yet, Im going to speak to Companys House this week if I get time, get them to clarify a point or two I want answering.
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5.6million......... should b hit that by the end of the week ::)
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only by end of the week yr slowing down now your hitting 40 lol
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only by end of the week yr slowing down now your hitting 40 lol
sad thing is, my waist line was 40 b4 me :( need 2work harder like u lammy ;)
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was out on the glass dis morning 3.30 am finished 16.45pm
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was out on the glass dis morning 3.30 am finished 16.45pm
WOT!!!! m8 i love my job but not that much :o :o :o :o we gonna get in trouble cause were gettin off the origanal sub ::)
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slump thats a nice post, and I to think it is something like that, my partner is an accountant and told me something similar a while back, I think it was something like there is no 647l allowance but the rate is lower so once you are earning so much its worth your while, but I think there was something in the pipeline for that to be changed so best getting your info from the horses mouth so to speak.
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How can you possibly make the assertion that because a company has the small company exemtion that it is "some1 attempting to look the part" and "a company trying to look big"
You simply cannot.
The only thing that is possible to conclude from that is that they are turning over less than £5.6 million. Not, as you seem to think, that the are just trying to look big.
I hope you say some more, I'm interested to know just how much you are willing to comment on a subject you clearly know nothing about. This thread illustrates my point about you perfectly.
right in simple terms ( just for you )
stephen s was engaging in banter the other night ( as he does, i found alot of it tounge in cheek , the if you dont spend big money on a van and system post sums it up )
davids3511 noticed and found the company stephen s was trading as ( AQUA TECHNOLOGY LIMITED ) and used it as a example
thus my reply, a little bit of banter with stephen s
i notice that stephen s replied and took it for what it was, a bit of banter
then you come alone and seem only to happy topost when it didnt really have anything to do with you, but hey, as long as your repling to me, your life is complete ::)
fore the record, imho when a 1 man bad goes ltd, its for 1 reason and 1 reason only
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..............................to save money
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How?
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By paying less tax
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So how does that work then?
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http://www.lmgtfy.com/?q=tax+advantages+limited+company
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if you got high turn over more than 35k a year it s good to go ltd you pay less tax and you got subject to statous (if you wonna get a new van foristance no hastle just choose what you like and drive away in an hour )
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if you got high turn over more than 35k a year it s good to go ltd you pay less tax and you got subject to statous (if you wonna get a new van foristance no hastle just choose what you like and drive away in an hour )
thats1 hell of a perk :o like the less tax as well........wot ever that is
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http://www.oakleywindowcleaning.co.uk/oakleywindowcleaningltd.pdf
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http://www.oakleywindowcleaning.co.uk/oakleywindowcleaningltd.pdf
Matt did you incorporate your business on the strength of this discussion,not being rude but you didn't seem to understand some of the taxation points yesterday,and yet today you are a ltd company.
As i say i am not being rude just wondered if you sought further more profeesional advice before taking the decision. :)
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just gone ltd matt the advantages are that if it goes belly up the debts are soley part of the company so your assets are safe and they cant get a hold of ya house mate u ok you thinking of goin ltd then we buy all our tools through the ltd company
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http://www.oakleywindowcleaning.co.uk/oakleywindowcleaningltd.pdf
Matt did you incorporate your business on the strength of this discussion,not being rude but you didn't seem to understand some of the taxation points yesterday,and yet today you are a ltd company.
As i say i am not being rude just wondered if you sought further more profeesional advice before taking the decision. :)
No mate, I didnt , in fact I havent gone LTD Ive simply reserved the name so far. It only costs £20.00 to do, there is a yearly charge, effectively you remain a dormant company so far as Companies House is concerned and your accounts are submitted for the cost of that charge.
I was curious to know initially as there are other window cleaners around where I live who also want to call themselves Oakley Window Cleaning, they have in the past with various advertising and leaflet drops.
It not that I want to stop them but I do want to stop them trying to stop me from calling myself Oakley Window Cleaning. Which they cannot do now. Its my name and thats that.
I may at a later date go LTD but that will require more investigations and advice, it seems from what Ive researched that the main advantage is that of liability and how other businesses view you and also how banking views you and deals with you; the tax advantages havent been entirely outlined and the costs havent either.
Matt
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what happened to the others who have the same name as you? is oakley a big place? i know really big firms such as "yamaha" put a stop to folk using their name ,probably in court
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Theyre about, operating, occasionally advertising, doing no harm, I am just protecting my interests.
Its not a huge place, big enough for quite a few cleaners though, I have been asked to price jobs before though and turned up introducing myself as Oakley Window Cleaning and the response is 'Well, we rang you 3 months ago and you never turned up' when it wasn't me.
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what about changing you business name didnt think that sort of thing could happen mate its a mystery to us all here well i take ya word for it :o
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Me? Change my business name?
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My son went limited just this last week, He is classed as a share fisherman, and up to now has only worked 3 to 4 months a year for a salary of 50k.
My son is now going to fish in Chile for 4 months with the same ship, for
These 4 months he gets paid an extra 9k US a month plus bonuses.
The accountants have advised my lad to go limited for tax reasons only, and now he will only pay 21% on his foreign earnings.
My son asked his accountant about more records to be kept, the accountant said just leave all that to me.
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Hello Gentlemen,
I may be able to help here. I occasionally read these forums and in the spirit in which others have helped me in the past, I may be able to offer a very balanced view on this subject, given that we were one of the first Ltd companies in our region for this industry. Pinnacle is one of the largest commercial and industrial window cleaning companies in our region, we procure services to MOD, NHS local authority etc. Now I have established our credentials, I can answer this question:
In truth it is unlikely to be of any 'real' benefit financially or otherwise, given that the corporation tax brackets have now been closed by the government - it used to be 18%. However, as dai quite rightly points out, it is now 21% although a further 1% tax has been deferred by labour till a later date (read after election no doubt). And please don't assume that banks now will look more favourably at unsecured credit to Ltd companies - This is simply not true, you will have to secure it, it will be against assets & there is no more writing debt off in the way that is being implyed - Not since the start of the banking crisis. If you don't believe me, walk into any high street lender & ask them for a £30k business loan and watch the reaction! In truth they will lend you it only if you can prove you don't need it - no i don't get that either!
Also, as a Ltd company, you can expect to require chartered accountants, to submit annual tax return to company house, which they charge you for, you will by this time be a VAT registered company and require significant investment in accountancy, training or free man hours to ensure you do not fall foul of deadlines, tax remitances and be able to handle the inevitable tax enquiry they love to generate every so often - which will also cost money!
Also, the other downside is that you will of course require detailed business accounts, forget your profit & loss - not good enough. This will involve regular and specific information about your personal & private tax affairs of you & your employees. Make no mistake, any one telling you otherwise is fibbing & really should be taken on face value. One other thing, I really do chuckle when i read others conferring status to individuals whom convert to LTD companies as a means of implying size or success. I don't know about you, but I know alot of very large Ltd never mind corporates or PLC's (think Woolworths) that traded on losses year in year out. Just because a window cleaner is Ltd makes not one bit of difference to their operational capacity or their margin for profit, in fact I doubt many of them are better off than you at this moment in time!
Oh yes, one last point I couldn't help notice! Matt has regisitered as a dormant company, which I can see where he is coming from. However, you should be aware that it does not strictly stop me from trading as Oakley Window Cleaning Matt! I can register a company today called oakley window cleaning (southampton) - no idea where you are , just an example. However, i can trade on my paperwork, business cards, vehicles etc as Oakley window Cleaning. The only way that you can realistically prevent me is to register Oakley as a trade Mark within your industry, which, you guessed it; costs money. Thereby preventing (and i will use the correct terminology here) other companies that are not of a dissimillar enough decription to operate with your name & logo.
I hope this has helped. Although any good accountant should be able to tell you most of the above - just be sure to ask one you trust - as I am sure all accountants would love us all to be LTD, if you take my point.
Regards
Gary
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was out on the glass dis morning 3.30 am finished 16.45pm
he is slow!!!!!!! it took him that time to finish a 4 bedroom house ;D ;D ;D ;D
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nah was a 2up 2down lol
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Hello Gentlemen,
I may be able to help here. I occasionally read these forums and in the spirit in which others have helped me in the past, I may be able to offer a very balanced view on this subject, given that we were one of the first Ltd companies in our region for this industry. Pinnacle is one of the largest commercial and industrial window cleaning companies in our region, we procure services to MOD, NHS local authority etc. Now I have established our credentials, I can answer this question:
In truth it is unlikely to be of any 'real' benefit financially or otherwise, given that the corporation tax brackets have now been closed by the government - it used to be 18%. However, as dai quite rightly points out, it is now 21% although a further 1% tax has been deferred by labour till a later date (read after election no doubt). And please don't assume that banks now will look more favourably at unsecured credit to Ltd companies - This is simply not true, you will have to secure it, it will be against assets & there is no more writing debt off in the way that is being implyed - Not since the start of the banking crisis. If you don't believe me, walk into any high street lender & ask them for a £30k business loan and watch the reaction! In truth they will lend you it only if you can prove you don't need it - no i don't get that either!
Also, as a Ltd company, you can expect to require chartered accountants, to submit annual tax return to company house, which they charge you for, you will by this time be a VAT registered company and require significant investment in accountancy, training or free man hours to ensure you do not fall foul of deadlines, tax remitances and be able to handle the inevitable tax enquiry they love to generate every so often - which will also cost money!
Also, the other downside is that you will of course require detailed business accounts, forget your profit & loss - not good enough. This will involve regular and specific information about your personal & private tax affairs of you & your employees. Make no mistake, any one telling you otherwise is fibbing & really should be taken on face value. One other thing, I really do chuckle when i read others conferring status to individuals whom convert to LTD companies as a means of implying size or success. I don't know about you, but I know alot of very large Ltd never mind corporates or PLC's (think Woolworths) that traded on losses year in year out. Just because a window cleaner is Ltd makes not one bit of difference to their operational capacity or their margin for profit, in fact I doubt many of them are better off than you at this moment in time!
Oh yes, one last point I couldn't help notice! Matt has regisitered as a dormant company, which I can see where he is coming from. However, you should be aware that it does not strictly stop me from trading as Oakley Window Cleaning Matt! I can register a company today called oakley window cleaning (southampton) - no idea where you are , just an example. However, i can trade on my paperwork, business cards, vehicles etc as Oakley window Cleaning. The only way that you can realistically prevent me is to register Oakley as a trade Mark within your industry, which, you guessed it; costs money. Thereby preventing (and i will use the correct terminology here) other companies that are not of a dissimillar enough decription to operate with your name & logo.
I hope this has helped. Although any good accountant should be able to tell you most of the above - just be sure to ask one you trust - as I am sure all accountants would love us all to be LTD, if you take my point.
Regards
Gary
Superb post Gary.
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Hello Gentlemen,
I may be able to help here. I occasionally read these forums and in the spirit in which others have helped me in the past, I may be able to offer a very balanced view on this subject, given that we were one of the first Ltd companies in our region for this industry. Pinnacle is one of the largest commercial and industrial window cleaning companies in our region, we procure services to MOD, NHS local authority etc. Now I have established our credentials, I can answer this question:
In truth it is unlikely to be of any 'real' benefit financially or otherwise, given that the corporation tax brackets have now been closed by the government - it used to be 18%. However, as dai quite rightly points out, it is now 21% although a further 1% tax has been deferred by labour till a later date (read after election no doubt). And please don't assume that banks now will look more favourably at unsecured credit to Ltd companies - This is simply not true, you will have to secure it, it will be against assets & there is no more writing debt off in the way that is being implyed - Not since the start of the banking crisis. If you don't believe me, walk into any high street lender & ask them for a £30k business loan and watch the reaction! In truth they will lend you it only if you can prove you don't need it - no i don't get that either!
Also, as a Ltd company, you can expect to require chartered accountants, to submit annual tax return to company house, which they charge you for, you will by this time be a VAT registered company and require significant investment in accountancy, training or free man hours to ensure you do not fall foul of deadlines, tax remitances and be able to handle the inevitable tax enquiry they love to generate every so often - which will also cost money!
Also, the other downside is that you will of course require detailed business accounts, forget your profit & loss - not good enough. This will involve regular and specific information about your personal & private tax affairs of you & your employees. Make no mistake, any one telling you otherwise is fibbing & really should be taken on face value. One other thing, I really do chuckle when i read others conferring status to individuals whom convert to LTD companies as a means of implying size or success. I don't know about you, but I know alot of very large Ltd never mind corporates or PLC's (think Woolworths) that traded on losses year in year out. Just because a window cleaner is Ltd makes not one bit of difference to their operational capacity or their margin for profit, in fact I doubt many of them are better off than you at this moment in time!
Oh yes, one last point I couldn't help notice! Matt has regisitered as a dormant company, which I can see where he is coming from. However, you should be aware that it does not strictly stop me from trading as Oakley Window Cleaning Matt! I can register a company today called oakley window cleaning (southampton) - no idea where you are , just an example. However, i can trade on my paperwork, business cards, vehicles etc as Oakley window Cleaning. The only way that you can realistically prevent me is to register Oakley as a trade Mark within your industry, which, you guessed it; costs money. Thereby preventing (and i will use the correct terminology here) other companies that are not of a dissimillar enough decription to operate with your name & logo.
I hope this has helped. Although any good accountant should be able to tell you most of the above - just be sure to ask one you trust - as I am sure all accountants would love us all to be LTD, if you take my point.
Regards
Gary
very informative :)
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Thanks for that Gary, an excellent post.
My lad told me that his accountant was really helpfull, a sure sign that it's going to cost him plenty.
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hmm, then you have to publish your year results to companies house so everyone can see what you are earning
i did my own companies house return this year, and didnt have to enter my gross profit. so its not true, would be cool to have a nose on other peoples earnings though ;D
it has saved loads on tax and ni as you dont have to pay any!
in 2 1/2 years ive only paid £1300 tax, but next bill is due in a couple of months. hope its not too bad.
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thought this might interest you to summarize it heres a few points ive gleaned over the 2 1/2 yrs ive been limited.
1. £7500 tax free
2, no n.i to pay
3. you personally cant go bankrupt if biz goes down the pan
4. assets are safe
5. lots of expenses tax deductable
if you want your business name protected, you need to trademark it, theres nothing stopping people using your name legally if you dont.
heres some deeper stuff off a website = http://www.formacompany.com/en/uk/benefits-of-limited-company
Limited Liability - what does it really mean?
The principal benefit of trading via a limited company has always been the limited liability bestowed upon the company's officers and shareholders. As a sole trader or other non-limited business, personal assets can be at risk in the event of a failure of the business, but this is not the case for a limited company.
As long as the business is operated legally and within the terms of the Companies Act, directors or shareholders personal assets are not at risk in the event of a winding up or receivership.
Operating as a limited company often gives suppliers and customers a sense of confidence in a business. Larger organisations in particular will prefer not to deal with non-limited businesses
Many of the costs associated with managing and operating a limited company are not much more than with a non-limited business. Accountants and other professional advisers often have conflicting views on when they consider the benefits of being limited to outweigh the advantages of being self-employed.
There is no obligation for a limited company to commence trading within any set time period after its incorporation. This means that the formation of a limited company is one simple and low cost method to protect a business name. Whilst this does not in itself give any rights to use of the business name, many clients incorporate companies in anticipation of future development of new businesses or in order to protect the limited company name of an existing non-limited business for the future. No two limited companies can exist with exactly the same name.
If a limited company becomes insolvent and is wound up only the assets of the Company are used to try to clear its debts. The officers of the company have no personal liabilities, and are not made bankrupt and are then free to incorporate another company. The shareholders are liable only to the extent of any unpaid shares held.
By contrast, if you trade as a partnership or as an individual, the creditors can claim on all your property to satisfy the debts, and if this is insufficient you may be declared bankrupt. An undercharged bankrupt is forbidden to start another business or to become a director of a limited company.
Maximising the Benefits of a Limited Company
Tax Benefits
One of the main focus for small businesses will be the maximising benefits to minimise the Deemed Schedule E payment. This can be done by:
Ensuring that your company makes pension contributions.
Ensuring that you claim the maximum possible expenses allowable under legislation.
Ensuring that capital equipment used in your business is purchased by you and that capital allowances are claimed.
Ensuring that benefits in kind (insurance, health care etc.) are paid out of the company, but only if your Salary and Deemed Payment are likely to be below £26,000, per year.
Other considerations are:
Keep cash in the business as a loan to the business, so that the company receives interest Gross and pays only 10% tax on the first £10,000 taxable profits. If you keep spare cash in an account in your name you may well pay 40% tax on the interest.
Ensuring that other income streams are generated by the company and that expenses are allocated to that income, (ie. Partners Salary allocated to the interest income) That way no tax is paid on some income.
Make investments through the company. But make sure you use up your own £7500 Capital Gains Tax Free Allowance as well as that of your spouse, first before making investments from the company.
There are a number of other tax advantages for a limited company. Firstly, there is no National Insurance to pay. A limited company only pays Corporation Tax at 10% on its profits up to the level of £10,000 and 20% between £50,000 - £300,000, after deducting all expenses including directors remuneration.
Often it is possible to reduce the Corporation Tax, with careful planning, by making dividend payments to its shareholders, and by the use of a Company Pension Scheme.
Raising Finance
A limited company has an advantage of raising finance by selling issued shares to investors. The value of a share depends on the viability of each individual company, and not the nominal value of a share. It may also raise finance by means of overdrafts, debentures and loans.
Continuity of Business
The death or resignation of any officers of the Company does not affect the structure of the Company, which may continue to trade as before. Any shares held by them may be passed on to the others.
Protection of your Business Name
Registration legally protects the Company name against anyone else incorporating a similarly named limited company either in sound or spelling.
Name of the Company
The Registrar of Companies will not under the Companies Acts, register a name where it is the same as that of an existing company. However, a company may be incorporated with any name that is not considered undesirable by the Registrar, but may not without consent, include words such as Royal; Bank; Board; International; Group; National etc. Other words may not be allowed if they imply connections with government bodies or other established institutions such as Chamber of Commerce, Insurance Brokers, Architects etc. We will carry out a free company Name Check for you
Directors and Company Secretary
A limited company must have at least one Director and may have a Company Secretary. They are known as the Officers of the company and are responsible for the management of the company. The officers of the company must act in good faith, responsibly and in the interests of the shareholders. There need only be one director. However, a sole director cannot also be the company secretary. We can act as a Company Secretary for you. There is no restriction on the number of directorships and secretarial positions an individual may hold, nor are there any restrictions on the nationality or residency of the directors or secretaries.
Registered Office
All companies by law must have a registered office in the country of its incorporation. It is a place where the company's statutory records are maintained, and is the place where any legal notices are served on the company - we can act as your Registered Office.
Memorandum and Articles of Association
These are the rules and regulations which form the legal basis for the conduct of the company amongst its shareholders and directors, and with third parties. Our Memorandum of Association has a wide ranging object clause, allowing you to trade in any business you desire. The Memorandum of Association must state the name of the company, and in which country its registered office is situated. They also include the amount of authorised share capital, the number of shares that are to be registered, and the classes of the shares. The Articles of Association govern the internal affairs of the company.
Company Stationery
The company must show on all business letters, invoices, written orders, receipts and demands for payment the name of the Company, registration number, company's country of incorporation, and the registered office address. This information should also be displayed at the registered office and in premises where business is carried on.
Summary
The company has a legal existence separate from management and its members - the shareholders
Members' liability is limited
The company's name is protected
It has flexible borrowing powers
The company continues despite the death, resignation or bankruptcy of management and members
The interests and obligations of management are defined
Appointment, retirement or removal of directors is straightforward
New shareholders and investors can be easily assimilated
Employees can acquire shares
Taxation - sole traders, partners and partnerships pay income tax. Sole traders' and partners' income is taxed as the proprietors' income, regardless of how much profit is retained as working capital and interest on loans to the business is taxed as their income. Partners are liable personally and jointly for partnership tax and if a partner dies, the surviving partners are responsible for partnership tax
Directors pay income tax and the company pays corporation tax on company profits, and with current rates of tax company profits earned and retained in the business are assessed to corporation tax at lower rates than if income tax were payable on equivalent profits earned by an unincorporated business.
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No mate, I didnt , in fact I havent gone LTD Ive simply reserved the name so far. It only costs £20.00 to do, there is a yearly charge, effectively you remain a dormant company so far as Companies House is concerned and your accounts are submitted for the cost of that charge.
I was curious to know initially as there are other window cleaners around where I live who also want to call themselves Oakley Window Cleaning, they have in the past with various advertising and leaflet drops.
It not that I want to stop them but I do want to stop them trying to stop me from calling myself Oakley Window Cleaning. Which they cannot do now. Its my name and thats that.
I may at a later date go LTD but that will require more investigations and advice, it seems from what Ive researched that the main advantage is that of liability and how other businesses view you and also how banking views you and deals with you; the tax advantages havent been entirely outlined and the costs havent either.
Matt
Where did you make your LTD company dormant? was it from an online website? if so what site was it if you dont mind me asking.
dave
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Is it true that only a chartered account can sign off your books and accounts for a ltd. co. Not a bookkeeper or yourself. I am not sure of the laws in thee U K.
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Is it true that only a chartered account can sign off your books and accounts for a ltd. co. Not a bookkeeper or yourself. I am not sure of the laws in thee U K.
This is true.
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My accountant is certified and truly not chartered. I have been ltd for 4 years. He submits my accounts every year with no problem.