Online Limited Company Accountants - More Than Acountants

Online Limited Company Accountants

Accountancy Services for Limited Companies

Fixed monthly fee online accountancy services for limited companies.

We provide online accountancy services provided for a fixed monthly fee.

Limited company accounts, company tax returns, VAT returns, bookkeeping services, payroll services and self-assessments with a fresh approach, focussed on service levels and proactive advice.

Spending your time chasing invoices and updating spreadsheets is time consuming. With Xero software and a variety of accountancy solutions, we’ll make keeping track of your UK limited company accounts and business finances simple so you can focus on your business.
Limited company accountants
Limited company accountants

Limited company accounting and client service that is among the best in the market

Limited Company Accountancy Services we Provide

Limited company accountants

Company Accounts

Our expert accountants prepare tax-efficient company accounts for businesses.

Limited company accountants

Bookkeeping

Fully managed bookkeeping service allowing you to run your business

Limited company accountants

Tax Returns

Accurate, on time corporation tax to Companies House and HMRC.

Limited company accountants

Financial Reports

Informative financial reports that help make better business decisions and help us provide proactive tax adivice.

Limited company accountants

VAT Returns

Accurate, on time VAT filing to companies house and HMRC

Limited company accountants

Payroll

Fully managed end to end payroll service

To get started generate a live and accurate quote online based on your turnover and transactions – quote now.

Frequently Asked Questions

Do limited companies need an accountant?
Although it is not legally needed to hire an accountant when forming a limited company, there are numerous advantages to doing so.

Is it a legal obligation  for me to hire an accountant?
Despite popular belief, there is no legal obligation for small businesses to hire an accountant, and organisations that meet the following conditions are completely immune from auditing:

1. The company must be’small,’ as defined by two of the following criteria: turnover of less than £6.5 million, average staff count of less than 50, and balance sheet turnover of less than £3.26 million.

2. If a member of the firm requests an audit (assuming they hold 10 percent of the share capital or 10 percent of all members for a company limited by guarantee).

Most companies fit this criteria.

Why would you hire an accountant in the first place?

Although it is not required, the vast majority of limited company owners hire accountants rather than handling their own accounts for a variety of reasons.

Simply put, an accountant does more than assemble your books at the end of the year and file your VAT reports. They also perform a variety of other tasks, such as:

  • Getting the business registered with all of the relevant tax departments – VAT, Corporation Tax, PAYE, and so on.
  • Setting up and maintaining the company payroll, as well as adhering to the new RTI regulations.
  • Bookkeeping.
  • Taking care of business correspondence (Companies House, HMRC).
  • Providing assistance with tax planning.
  • Advice on distributing dividends.
  • Professional references are provided.
  • Furthermore, experienced accountants are more familiar with the subtleties of dealing with tax authorities, the proper format for submitting information to HMRC, and are typically better equipped to deal with tax inquiries if they arise.

An accountant can help you with everything from figuring out what expenses you can deduct from your Corporation Tax to determining whether you have enough retained earnings to properly declare a dividend.

Additional Considerations
If you decide to go it alone, you must ensure that your accounts are kept in accordance with Generally Accepted Accounting Practices, that information is submitted on time and accurately (and in the correct format), and that the company’s statutory and financial obligations are met.

Calculate how much time you’ll have to spend preparing your accounts, bookkeeping, and dealing with HMRC, and compare that to the cost of an accountant for a small business or freelancer.

If saving money is your primary concern, an accountant may be able to save you both time and money, allowing you to focus on running your business rather than worrying about the statistics.

What taxes do I pay as a limited company?
Limited Company  Tax
Having a limited corporation can help you save money on taxes. It’s worthwhile to spend some time learning about your Limited Company’s tax obligations and the repercussions of those obligations.

The first step in comprehending the various taxes you’ll face is to distinguish between the taxes your firm will levy and the taxes you’ll have to pay on your wage and personal income.

Corporation Tax 
Corporation Tax is levied on all profits made by limited enterprises. Before paying taxes, you should deduct your own compensation from profits. So, if you invoiced £150,000 + VAT to your clients over a year and paid yourself a salary (plus any other expenses) of £25,000, you’ll only have to pay Corporation Tax on £125,000.

The rate is 20% if your firm earns less than £300,000 in profit per year, which is considered a small profit. This becomes the main rate of Corporation Tax on April 1, 2015.

Employer’s National Insurance contributions (NICs)
As an employer, you must pay National Insurance contributions on behalf of all employees who earn more than the current threshold.

HMRC has information on the current criteria as well as the rates that businesses should pay.

Value Added Tax (VAT)
If the yearly revenue of your firm exceeds the VAT registration level, you must register for VAT. In addition to collecting VAT from your customers and remitting it to HMRC on a quarterly basis (also known as your output tax). You can reclaim the VAT you owe to other companies (also known as your input tax). The amount you’re claiming can’t be more than the VAT you charge others for your goods and services.

You might be able to take advantage of the flat rate VAT programme if you’re a small business. If your VAT taxable turnover is less than £150,000, you are exempt. This simplifies accounting because your VAT payments can be calculated as a percentage of your entire inclusive turnover.

PAYE (Pay As You Earn)
If you make more than the tax-free personal allowance, the salary you receive from your firm will be subject to PAYE tax, just like if you were working for another company.

Personal Dividend Tax
The tax you must pay on your business’s dividends is smaller than the tax you must pay on your wage.

Employees’ National Insurance Contribution (PERSONAL)
In addition to the NICs that you must pay as a business for each of your employees, you must also pay NICs personally.

You must pay NICs on your wage, but you do not have to pay NICs on dividend income.

Can your accountant set up a limited company?
Most accountants can set up a limited business on your behalf for free or for a fixed cost. More Than Accountants do not charge for this service.

How much should you budget for this initial service?

Company establishment methods
A limited company can be formed in one of three ways:

1. Use Companies House to do it yourself. The electronic service costs £12 (while the print service costs £40). If you choose the paper version, you will be responsible for filling out the application form and submitting any additional papers.

2. Hire a formations agent to do it for you. You can pay anything from £30 for a very basic service (with all paperwork sent electronically) to £100 or more for a more advanced service.

3. For a price or free if you sign up for their accountancy service, your accountant can register a corporation on your behalf.

What are the benefits of a limited company?
You’re safe since you’re only liable for a certain amount of money.
Whether you’re a sole trader or a limited company, taking measured risks is a necessary aspect of running business, but only the latter protects you from a calculated risk gone wrong. You’ll be left out in the cold if you choose the former.

The law has stated that a limited company has its own legal personality that is distinct from the people who make up the company since time immemorial (well, 1897). Third parties, such as clients and suppliers, instead of individual directors and shareholders, engage into contracts with the corporation.

The biggest advantage of this legal distinction is that as a director of a limited company, you have limited (capped) liability for the business’s obligations, which usually amounts to the amount you paid for the shares plus any unsecured loans you took out. As a result, if the firm gets into problems or even goes bankrupt, you won’t be held liable for any of its financial losses. One exception to the norm is if the company’s creditors lose money as a result of fraud committed by you as a director, in which case you’ll be held personally liable indefinitely.

In contrast, because a self-employed person and their firm are classified as a single entity for tax and administrative purposes, sole trader status provides no protection from financial claims if a business goes bad. They might face infinite personal liability for their business obligations, and in some cases, even their houses could be at risk

Tax and National Insurance Efficiency

If you work as a director of a limited business and earn a tiny salary, the most of your income will come from dividends, you will still be eligible for State Benefits without having to pay any employer or employee National Insurance Contributions (NICs).

Dividends pay less tax and are exempt from NICs, whereas a sole trader’s full income is subject to NICs. In our article ‘How much should I accept as a salary from my limited company?’ we go through all of this in further detail.

Higher take-home income is certainly the rule of the day with a small business (see our Take-Home Pay calculator for more detail). However, over time, modifications to the dividend taxation structure have eroded some of the tax benefits, resulting in greater taxes for limited company shareholders. However, for many people, operating as a limited business can still be more tax-efficient. Our article “What tax do I pay on dividends?” has the most up-to-date rates as well as some practical examples.

Improved credibility/reputation

In business, confidence is crucial, and a limited company has a professional veneer that can instil confidence in your organisation.

Some clients, particularly large organisations and those in the financial industry, prefer to engage exclusively with limited companies, while others outright refuse to do business with unincorporated entities. As a result, establishing a limited company can open up new business options that would not have been available otherwise.

Other benefits of forming a limited company include:

it is not as expensive or difficult to form a limited company

Most individuals will look at you blankly if you ask them how they would go about founding or forming a limited corporation. A prevalent misperception is that forming a company is a bureaucratic slog that takes months and costs thousands of pounds. The truth is that you can incorporate online in under ten minutes for less than the cost of a takeout pizza, or even for free!

Getting a loan is a lot easier 

A limited company’s separate legal entity may make it slightly easier to acquire financing to help you build your firm than a sole trader. Sole traders, on the other hand, must raise new capital from their own funds. That’s pretty much it if they happen to be cash-strapped at the moment.

Choosing a business name

The company name is legally protected after you register a company with Companies House (or save money by using our Crunch Formations service). This means that there can only be one company with the same name in the UK (or anything too similar). The problem is that as a single trader, you have no control over who uses your business name.

Worse still, if they’re into dodgy dealings (think Cowboy Builders and Rogue Traders) this could hurt your business no end and put you through the stress and inconvenience of having to change your trading name and potentially lose all the hard-earned brand recognition that you’ve built up over the years. But keep in mind that there are some guidelines to follow when naming your company – learn more about how to come up with a fantastic business name.

Keeping a business name safe for the future

Let’s imagine you’ve had a lightbulb moment and have a brilliant idea and a name for a business, but you don’t have the time or the funds to pursue it right now. Instead of abandoning your concept entirely, you can create a dormant company to put it on hold while also protecting its trading name.

A inactive company is one that does not trade and has made no substantial accounting transactions during a financial year, according to HMRC and Companies House. You’ll need to let them both know that your company is dormant and there’s a few things you’ll need to file each year, but setting up a dormant company can protect your future interests.

It’s easier to sell or transfer a company’s ownership.

If you want to call it a day, sell your shareholding or (heaven forbid) you go to meet your maker, it’s much easier to transfer ownership of a limited company than an unincorporated structure. Clients, equipment, and the entire shebang can be packaged and sold.

This can be difficult for sole traders because most of the equipment they use is their personal property, and many aspects of the firm are linked to their personal identity.