Category Archives: Business Advice

Ten hands in a circle holding a wooden jigsaw piece each in the middle

How to Become a Ltd Company

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When you started your business, you’ll likely have registered as a sole trader. But if you’ve been trading for some time now, you might be thinking about setting up a Limited Company.

Incorporating has significant implications, but if it’s the right move for your business then you’ll reap the rewards. It doesn’t have to be difficult if you know what to expect – so here’s what you should do if you’re thinking about becoming a Limited Company:

Summary

Prepare

  • Understand the advantages
  • Make sure it’s the right move for your business

Register

  • Choose a name and address
  • Register with Companies House
  • Notify HMRC

Transition

  • Transfer contracts
  • Transfer assets

Comply

  • Manage compliance and filings
  • Review insurance needs
  • Understand your obligations

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Businessman leafing through wad of cash at desk

Salaries and Dividends: How to Pay Yourself as a Business Owner

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Owning a business isn’t easy: you’re in charge of finding customers, building your brand, looking after your employees, managing funds… and that’s before you consider the fact that you have to sort out your own income too!

It’s fairly straightforward for sole traders and partnerships who can simply withdraw cash from their business.

However, things are a bit more complicated if you’re the director of a limited company as you’re technically an employee of the firm. This means that you can pay yourself a salary as well as dividends – but they’re not one in the same, as they’re subject to different types and rates of tax.

In short, the best way to pay yourself is by taking a modest director’s salary and supplementing your earnings with regular dividend payments. But what’s the most tax-efficient way to go about this so that you can maximise your earnings? Keep reading and we’ll talk you through it.Continue reading →