Limited companies

There is one main rate of corporation tax of 19%. Corporation tax rate is to reduce to 17% from 1 April 2020.

You are just a few seconds away...

This content is only available to our registered users.

Please login or create a free account to access our exclusive range of FREE business guides, bookkeeping software and much more.

The tax system for companies

How the tax system works for companies.

Should you form a limited company?

We are often asked, 'Should I form a limited company?' The reality is that there is no easy answer. Each situation has to be judged individually. Our guide provides an overview of some of the key issues relating to a business trading as a limited company.

Buying a company 'off the shelf'

If time is an important factor, you can consider buying a ready-made company. The procedure will depend on the company formation agents', including online agents, requirements.

Tax and the company car

Details of how the tax system charges tax on a company car.

Company bonus or dividend?

In many small companies, the owners are also the directors, and this gives importance to how income is extracted from the company.

Entrepreneurs' relief

The relief gives rise to an effective capital gains tax rate of 10% on capital gains of up to £10 million.

Tax saving strategies

Expenditure incurred before the company year-end might reduce the current year's tax liability instead of next year's.

Claiming expenses

The rules which determine what expenses can be deducted from profit for tax purposes are essentially the same whether you operate as a limited company, sole trader or partnership.

Benefits in kind and expenses payments

Benefits in kind are assessed on all directors and employees and now be 'payrolled'.

Corporation tax

Details of corporation tax rates and bands.

Penalties for late returns

The tax system is replete with fines and penalties for those that do not file or pay on time. Make sure you do not become liable to any of these penalties.

Main capital allowances

A summary of the main allowances available. The 100% annual investment allowance on plant and equipment is £200,000.

Interest and tax payments

HMRC charge interest on underpayments of tax, and pays interest (repayment supplement) on overpayments.

Business deductions

In order to attract a deduction in computing the profits of a trade or business, any expenses must be incurred wholly and exclusively for the purpose of the trade.

Companies Act

The Companies Act comprises approximately 1,300 sections.

Companies House - forms you need to know about

There are over 100 company-related forms prescribed. We list below these and include a link to all the forms which can be downloaded direct from Companies House.

The law and directors' responsibilities

Who is a director? What are their legal responsibilities?

Statutory records

It is essential that you keep your company's statutory records up-to-date. Do not underestimate the importance of these records - they are definitive proof of the company's legal existence and its members.

The company secretary

The position of company secretary in a private company is now optional. Thus a company can operate with a sole director.

Essential record keeping

Ideas on how you can reduce the time we take to prepare your year-end accounts.

Getting the company struck off

A private company (not subject to insolvency proceedings) can apply to the Registrar of Companies to be struck off the register and dissolved.

Could your business survive without you?

As accountants and business advisers we get to know our clients very well. From our position, it is all too clear to us that many clients are too focused on 'today' to give serious thought to the future.

Green travel allowances

There are a number of schemes intended to encourage employers to make arrangements for their staff to travel to work by more environmentally beneficial means.

SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's Largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
  • Money back service guarantee. All your Emails received by 4pm on any normal working day will be answered the same day. Should it be necessary to leave a telephone message it will be answered same day/following day latest or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee starting from £120 plus VAT per month. Check our packages for more detail.

If you have any questions about contracting or would like any further advice please call our new client services helpdesk on 01442 275789 or email: janice@sjdaccountancy.com. Our new client services helpdesk is open Monday to Friday (8am to 6pm).

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own Limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.