Companies House
Help with forming limited companies
Starting a business can be an exciting and rewarding endeavour, but it also requires careful planning and preparation.
If you’re a first-time entrepreneur or even an experienced business owner, the process of forming a company can be complex and daunting.
Forming a limited company can be Tax Efficient for many people. In situations where a company is making large profits, if you are a sole trader or partnership you can end up paying tax between 20% and 45% with additional expensive National Insurance through Class 2 and Class 4 on all of your profits.
By forming a limited company you are able to leave any excess profits in the company you do not need immediately, having only paid corporation tax on these profits which is currently 19% but is increasing to 25%.
You then only pay dividend rate tax on what you draw out of the company, which is not subject to National Insurance. Dividend Tax rates are also much lower, currently between 7.5% up to 38.1% increasing in April 2023 to between 8.75% and 39.35%.
Folkes Worton can also ensure that you are taking an appropriate level of dividend to ensure you are not paying unnecessary tax.
We can help you form a company from the very start of your journey. We can talk to you about the name you are looking for to ensure that this is available and there will be no objections, we can also suggest alternative names similar to the one you are looking for if you first choice is not available.
We can ensure a timely formation – usually a company formation can be done within 48 hours of the original request.
We compete competitively on pricing. A company formation usually only costs around £150.
We can ensure that the company is set up from the start in the most tax efficient way, this could be allocating shares to the correct people and discussing with you how you want the business to move forward.
Forming a limited company can be Tax Efficient for many people. In situations where a company is making large profits, if you are a sole trader or partnership you can end up paying tax between 20% and 45% with additional expensive National Insurance through Class 2 and Class 4 on all of your profits.
By forming a limited company you are able to leave any excess profits in the company you do not need immediately, having only paid corporation tax on these profits which is currently 19% but is increasing to 25%.
You then only pay dividend rate tax on what you draw out of the company, which is not subject to National Insurance. Dividend Tax rates are also much lower, currently between 7.5% up to 38.1% increasing in April 2023 to between 8.75% and 39.35%.
Folkes Worton can also ensure that you are taking an appropriate level of dividend to ensure you are not paying unnecessary tax.
We can help you form a company from the very start of your journey. We can talk to you about the name you are looking for to ensure that this is available and there will be no objections, we can also suggest alternative names similar to the one you are looking for if you first choice is not available.
We can ensure a timely formation – usually a company formation can be done within 48 hours of the original request.
We compete competitively on pricing. A company formation usually only costs around £150.
We can ensure that the company is set up from the start in the most tax efficient way, this could be allocating shares to the correct people and discussing with you how you want the business to move forward.
HMRC Compliance
At Folkes Worton, we pride ourselves in making sure that all of our clients are full 100% HMRC tax compliant.
In worst case scenarios where HMRC open investigations into your company you can have the peace-of-mind that everything carried out by Folkes Worton is 100% tax compliant and fully explainable to HMRC. This can save on the hassle and panic of what could come from an investigation. In many cases, investigations are random checks by HMRC to ensure that the Tax system is working correctly, means there is little to worry about, but with Folkes Worton behind you, this can be guaranteed.
We offer an investigation insurance with an annual fee of £175 that covers you for all work we have to do for any investigation you may have. This takes the stress, time and cost out of any compliance checks.
We can sit down with you to ensure that all information HMRC may need or want can be provided to them quickly and easily which keeps HMRC happy.
In the worst case scenarios, where HMRC find errors in your accounting records, or are unhappy with the tax paid, we can negotiate a fair level of fines with HMRC on your behalf to ensure any costs are minimised.
Folkes Worton LLP Chartered Accountants
Focusing on your Tax Requirements