What is a Ltd Company

A Ltd Company provides a tax efficient way to structure your business and make the most of the money you earn worknig as a contractor in the United Kingdom.

Benefits of a LTD Company

Among the chief advantages of trading via a LTD Company is the limited liability of its shareholders (i.e owners).

If you were operating as a sole trader your personal assets are subject to the business risk of your operation but with a Ltd Company, your personal assets are not at risk. The shareholders of a Ltd Company are not held liable in thweir personal capacity for debts incurred by the company. This is because a Ltd Company is considered a separate and distinct juristic person.

LTD Company Does Not Mean No Responsibility

Although a Ltd Company is considered a separate juristic person, this does not mean shareholders are free of obligation and responsibility. Being a shareholder or director in a Ltd Company means you are responsible for a number of administrative issues as specified by the Companies Act.

You'll find a list of Ltd Company Director Responsibilities and Deadlines here.

Maximise your earnings with a Ltd Company

Another important advantage to operating as a ltd Company is the potential tax benefit that you can benefit from by doing the following:

• Register for Flat Rate VAT (FRV)
• Claim expenses through the ltd company (including accountancy fees, travel costs and business equipment)
• Contribute a portion of your income to an Executive Pension
• Maximise your dividend payments up to the higher rate tax threshold
• Set your salary at an optimal level to greatly reduce your tax liability
• Invest any retained earnings in the company

Accounting for a Ltd Company

Running a Ltd Company brings with it a number of administrative requirements and responsibilities, as set out by the companies act.
An appropriately accredited accounting company who will be able to advise you on the best way to structure your ltd company and will greatly reduce your stress levels and save you money and legal hassles.

1st Contact Accounting are specialists in contractor tax and UK Limited Company formation. We provide face to face quarterly consultations and our clients enjoy direct access to an accountant for a quarterly consultation. There is no limit to the number of telephone and email enquiries.

We pride ourselves on superior service, aimed at saving our clients money. Contact 1st Contact today and get your ltd company operating at its most efficient.