The total tax and National Insurance (NI) paid by a small limited company is likely to be lower than a comparable unincorporated business when the taxable profits exceed the 40% level. Also, company profits do not attract National Insurance.

Salaries of directors of companies are subject to income tax and NI, but dividends paid out of company profits do not attract NI although there is a 19% tax on dividends. On the downside there may be capital gains tax implications when transferring assets (particularly goodwill) from an unincorporated business to a limited company. There is no right or wrong answer, it depends on your specific business so talk to a good accountant.

Only if you want to HMRC to calculate your liability for you. Otherwise the ultimate deadline is 31st January and after that you will pay penalties for not having filed returns. However, your accountant will want accounts way before January and probably start sending reminders any time after April. These may get more frantic as the year goes on! Do not leave everything to the last minute, otherwise stress levels will soar and mistakes will happen.

You must notify HMRC within 3 months to avoid a £100 penalty. If you’re approaching this deadline then contact us and we will help you get the form in on time.

With us, you get bookkeeping with a management accountant’s eye. You get advice, insights and training that you wouldn’t normally get from a bookkeeper.

You also get the peace of mind that comes from knowing you’re dealing with a company that has professional indemnity insurance and will be able to appreciate the bigger picture of your business