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You're now at the point that you've decided that a limited company is the best vehicle for your business. Fantastic! You will have the ability to dictate when, where and how you work. You’ll have the opportunity to build your own brand and will also be able to pitch for work that would be unavailable to a sole trader or other contractors.
From incorporating with Companies House, through to managing your own company admin and accounts, the thought of setting up your own limited company can be quite daunting. However, our accountancy services offer tailored advice every step of the way.
This video takes you from the point you’ve decided to set up a limited company, from the very start of your journey of incorporating your company at Companies House, through to what happens when you're up and running, along with everything in between.
This may seem like a simple step but large organisations have spent millions of pounds in choosing the perfect company name. Our advice would be to choose something that describes what you do whilst also being web friendly but the decision is yours to be as creative or practical as you like.
You’ll need to register your company name with Companies House with some basic information including your full name, address, mother’s maiden name and contact details.
No. There is no legal requirement for an accountant to be appointed. However, given the red tape involved in filing company returns, preparing accounts and dealing with HMRC, even small companies find an accountant by their side to be invaluable.
Yes. But just check that your employment contract doesn’t restrict you from running a business. It’s a good idea to let your employer know that you have another job or business on the side.
As a director of your own limited company, you will be taxed and pay National Insurance Contributions on any salary or wages you pay yourself. Your limited company will act as your employer and account for the taxes to HMRC. A Tax Code will be assigned to your company by HMRC reflecting your main employment.
As a limited company director, you'll need to maintain accurate company accounting records.
It's incredibly important to submit statutory accounts and returns to Companies House accurately and on time.
Ensuring that all workers comply with Health & Safety legislation and act reasonably whilst working on client premises will be your responsibility.
You'll need to make sure that amounts of tax (PAYE/NIC, VAT, CT) are paid over to HMRC accurately and on time.
View our Limited Company FAQs for a complete list responsibilities of being a director.
With your own limited company bank account you will be able to separate your company’s money from your own thereby ensuring that you set aside sufficient money to pay the company’s tax liability.
You can approach any bank to obtain your own company bank account.
As the director of a limited company you can set your salary at any level because directors are not subject to the National Minimum Wage or National Living Wage. As a shareholder you can also take profits from the company in the form of a dividend.
You will be employed by your limited company as a director – you will not be classed as self-employed.
As soon as your company bank account is open and your client is given the details you are ready to be paid. If you decide to use one of PayStream’s limited company accountancy services, we will be in touch to discuss further your specific circumstances and next steps.
It is always advisable to have Employers’ Liability, Public Liability and Professional Indemnity cover and you are free to approach any broker for a competitive quote. Alternatively, we can introduce you to the insurance experts, Kingsbridge Contractor. Contact us for more information.
Setting up a limited company can bring with it a number of responsibilities, including several taxes that you need to pay over the course of the year.
While this may seem daunting, don't be put off, as you can get expert and tailored advice from your dedicated PayStream accounts team, Our video explains what will be expected of you as the company director along with how PayStream can help you along the way. PayStream's accountancy services provide a safe pair of hands helping you to navigate and meet your responsibilities.
