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But with everthing there are also disadvantages
to setting up a limited company. Feel free to contact us if you are still
unsure about any of these points.
Accounts
Accounts and tax calculations have to be prepared and submitted to the
Inland Revenue and Companies House meeting statutory requirements.
Personal Tax
Return
Directors of limited companies, by law, must complete a self-assessment
tax return each year.
Value Added Tax
If the company turnover exceeds £50,000 in any 12 month period it must
become registered for VAT. This entails charging VAT on all invoices and
submitting quarterly tax returns.
Time
It takes time to run a limited company efficiently. Proper records must
be kept for tax purposes. Companies which cannot provide Inland Revenue
and Companies House with proper records of all company transactions including
invoicing and receipts for expenses will be heavily penalised.
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