General information only, not advice for your circumstances. Please talk to us before acting.
A limited company can offer limited liability and tax planning opportunities, but it comes with more administration than being a sole trader. Talk to us first about which structure suits you.
Setting up
- Register the company at Companies House, with its directors and people with significant control
- Register for corporation tax within three months of starting to trade
- Open a separate business bank account
- Register as an employer before your first payday, including for directors on the payroll
- Register for VAT if taxable turnover will go over £90,000
Paying yourself
Most owner-directors take a mix of salary and dividends. The right balance depends on your income, the company’s profits and your plans, and it changes as tax rates change.
Ongoing deadlines
- Annual confirmation statement at Companies House
- Accounts filed within nine months of the year end
- Corporation tax paid nine months and one day after the year end
- Corporation tax return filed within twelve months
