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Firstly let's clear up a common misconception amongst estate agents, lawyers, mortgage brokers et al.
If you are a director of a limited company you are NOT self-employed, even if it's a one-man company with only you as worker/shareholder.
Why be limited? Ask us, we'll tell you.
e.g.
tax planning is possible through accumulation of funds within the company
Dividends easily paid to whomever your shareholders are.
Profits retained in a limited company are sheltered from higher rates of personal tax
Limited company status often helps a business prosper, as third parties view you as more ‘serious’ through the limited structure
Raising of finance, and taking in outside investors to help a business expand can only easily be achieved once a limited company
Banks prefer substantial businesses to trade as limited companies
Protection from irate creditors in the event of a business mishap is worth having, although sadly HMRC can sometimes get at personal assets of directors!
If you're not sure what's right for you, read our guide, and then maybe give us a call and talk through your questions.
Contact us with any queries about this post
on abell@chartered.org or 0207 148 4785