Limited companies

The legal and taxation regime for limited companies continues to change. The main rate of corporation tax commencing 1 April 2009 is 28%, while the small companies' rate is 21%.

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Main capital allowances

For limited companies subject to corporation tax expenditure is on or after 1 April 2009, for unincorporated businesses expenditure is on or after 6 April 2009.

Do you need an audit?

The turnover threshold which currently exempts most companies from a statutory audit is £5.6 million. However, small companies still have to produce full statutory accounts.

Essential record keeping

Suggestions on how to reduce the time taken in accounts preparation.

Benefits in kind and expenses payments

Benefits in kind are assessed on all directors and employees whose salary and benefits combined are £8,500 or more. Remuneration by way of benefits is often attractive to employees, especially if they are paying the higher rate of income tax, because the benefit may either be tax free or subject to less tax.

Company bonus or dividend?

In many small companies, the owners are also the directors, and this gives considerable scope for deciding how profits should be taken out of the company.

Industrial buildings allowance

Capital allowances for the construction costs of industrial buildings or structures fall under several different headings, but collectively they are known as industrial buildings allowances.

Could your business survive without you?

As accountants and business advisers we get to know our clients very well. From our position, it is all too clear to us that many clients are too focused on 'today' to give serious thought to the future.

Buying a company 'off the shelf'

If time is an important factor, you can consider buying a ready-made company. The exact procedure will depend on the company formation agents, including online agents involved.

Claiming expenses - it's all or nothing

The rules which determine what expenses can be deducted from profit for tax purposes are essentially the same whether you trade through a limited company or a sole trade or partnership.

Tax and the company car

Details of how the tax system works with company cars.

The company secretary

With effect from 6 April 2008 the position of company secretary is now optional. What are the duties of a company secretary?

The tax system for companies

Details of corporation tax and company tax returns.

Business deductions

In order to attract a deduction in computing the profits of a trade or business any expenses must be incurred wholly and exclusively for the purpose of the trade. Capital expenditure is not an allowable expense (capital allowances are claimed on these costs), and certain other expenses are barred by statute.

The law and directors' responsibilities

Who is a director? What are their legal responsibilities?

'Green' travel arrangements

There are a number of schemes intended to encourage employers to make arrangements for their staff to travel to work by more environmentally beneficial methods.

Interest and tax payments

HM Revenue & Customs charges interest on underpayments of tax, and pays interest (repayment supplement) on overpayments. The rate of interest paid on overpaid tax is lower than the rate charged on underpayments, and interest rates are adjusted frequently in line with commercial interest rates.

Should you form a limited company?

We are often asked, 'Should I form a limited company?' The reality is that there is no easy answer. Each situation has to be judged individually. As well as the obvious issues of tax and national insurance.

Penalties for late returns

The 2009 Budget introduced wide ranging proposals to reform the penalties regime. This document reviews the reforms.

Statutory records

It is essential that you keep your company's statutory records up-to-date. Do not underestimate the importance of these records - they are definitive proof of the company's legal existence and its members.

Companies Act 2006

The new Companies Act comprises approximately 1,300 sections and introduces new legislation which reflects the changing business environment. The Act contains new and upd...

Getting the company struck off

A private company (not subject to insolvency proceedings) can apply to the Registrar of Companies to be struck off the register and dissolved.

Tax saving strategies

Expenditure incurred before the company year end might reduce the current year's tax liability instead of next year's. Bringing forward expenditure by even a few weeks on, for example, building repairs, advertising, sales and marketing campaigns, and any other item deductible from profits can accelerate the tax relief by twelve months.