Please click on the links below to answer any questions you may have. If your question is not listed, then please email us for a answer.

Advice on Taxation
Benefits of a Limited Company
Benefits of a PAYE Scheme
Where can I find more information on business issues?

Q. What are the Benefits of a Limited Company?

A. The advantages of forming a Limited Company are as follows:

Reduce Personal Liability
Adds Credibility
Easier Access to Capital Funding
An Enduring Structure
Easier Transfer of Ownership
Anonymity
Centralised Management and more ……
Unlike a sole trader or a partnership, the Limited Company will have a separate legal existence. This means it will be the company itself which owns property and contracts will be signed on behalf of the company. The directors, management and the employees of the company can only act as agents.

The company will continue to trade regardless of whether the directors or management change. Therefore unlike partnerships, the company is not dissolved on the resignation, bankruptcy or death of a director. The company can only be ‘killed off’ by either winding up, liquidation, or order of the Registrar of Companies or by the Court.

Another benefit is that there is limited liability. This means that the shareholders’ liability is limited to the value of the shares held by them should things go wrong. The personal assets of the directors cannot be seized to pay off debts.

Only property owed by the company can be touched (expect in the case of fraud when the directors may be found personally liable for losses if they knowingly incurred debts they knew or should have known the company could not or unlikely repay).

Registration of a Limited Company will protect the company name selected. This means because the name has first be approved by Companies House, who maintain a register of company names to ensure that the name chosen is not already in use.

Back to the Top

Q. What are the benefits of a PAYE Scheme?

A. The benefits of a PAYE Scheme are as follows:

Computerised reports including Payment History, Inland Revenue Payslips for Tax & National Insurance
Accurate Tax & National Insurance Calculations - Set with the up to date Governement Parameters
Pay your Tax and National Insurance throughout the year rather than a lump sum at the end of the year
Computerised P60's for all employees at the end of the financial tax year
New employees entered easily, including prevoius P45 details or a P46 can e issued
SSP, SMP, SPP, SAP, Student Loans, Company Pension Schemes & Tax Credits can easily be dealt with
Do you have any Company Car's? This can be added to your PAYE to calculate the Class 1 A National Insurance Contributions correctly
Holiday Days can be calculated
Computerised P45's for leavers, including a computerised copy of SSP1L form for employees who leave while still on Statutory Sick Pay
Computerised Payslips - required if you need a loan or mortgage
Small Employer? Want to benefit from up to £825 TAX FREE? Sign up for filing your P14(s) and your P35 online early and over the next five years you can recieve the following incentive amount:

Tax Year Incentive Amount
2004 -2005 £250
2005 - 2006 £250
2006 - 2007 £150
2007 - 2008 £100
2008 -2009 £ 75

As well as filing your P14(s) and P35 online you also benefit from quciker notifications of tax code changes, tax credits, student loans start and stop notices, plus other forms and notices via email.