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Limited Companies

Mercian Accountants > Limited Companies

Operating your business as a limited company can bring significant advantages, both in terms of the limited liability of the founders, and the prestige and public confidence that comes with being a company. But forming and running a company can be much more demanding than being a sole trader or partnership.

It’s a business structure that’s suitable for one-person businesses right up to large enterprises with significant turnover.

Keeping a close watch on your accounts is even more important when you’re a company. But if the thought of all the red tape, extra-time and effort puts you off, then don’t let it; we are specialists in providing accountancy services for companies just like yours.


Limited Company

A form of incorporation that limits the amount of liability undertaken by the company’s shareholders.

Limited Liability

The debts of the company are separate from those of the shareholders.

Tax Planning Advantage

Shareholders don’t have to pay personal tax until they withdraw money from the company.

Benefits Of Limited Company Structure

Forming and operating a business opens up a world of opportunities, but it also brings a level of risk. If you are a sole trader or partner, that risk falls directly on you. This means that you’re not only responsible for completing a tax return and paying income tax and National Insurance contributions, you’re also personally responsible for the debts of your business. If your company falls on hard times, then this could have a negative impact on your life as a whole.

But if you are a director of a company, then your personal liability is greatly reduced; separating your business finances from your personal finances. Whilst this brings obvious benefits, it can also mean that you can’t offset company losses against your own tax burden.

Your limited company will become its own separate entity, but with this added freedom and limited liability comes extra responsibilities. Your personal details, and that of other directors, along with an abbreviated form of your company accounts, will become available to the general public. You will also have to file accounts on a regular basis to Companies House and HMRC.

It’s essential that you have a high quality team of accountants before you incorporate your company; otherwise you’ll be bogged down by all the statutory requirements. At Mercian Accountants, we’re committed to providing an exceptional level of service at all times, not only saving our clients time and money, but also providing expert advice whenever it’s required.

Legal Requirements

As a limited company you will be strictly bound by UK legislation covering your accounts, business reporting, and more. Here are the current minimum requirements:

  • An annual return to Companies House every year by your filing date
  • Abbreviated accounts submitted to Companies House within nine months of the year end
  • Pay Corporation Tax within nine months of the year end
  • Corporation Tax return submitted annually to HMRC, including full accounts, within twelve months of the year end
  • Annual personal tax returns for all company directors, submitted  by January 31st of the year after the end of the tax year

Fines can be heavy for failing to meet these requirements, or failing to submit returns accurately and on time, but Mercian Accountants will take care of the whole process for you. From the actual incorporation and registering of the company itself, through bookkeeping, VAT returns, Annual Accounts and Corporation Tax, you can leave it safely in our hands.

Take Control Of Your Tax Bill

As a limited company you have an obligation to your shareholders to only pay the minimum amount of tax. Allowable expenses and tax reliefs can be complicated, but we can work through the process with you, so that you can deduct what you’re entitled to. As a result, you’ll have more funds to re-invest in your company so that you can achieve sustainable growth.

Our team of accountants always keep up to date with the latest legislation and regulatory changes, and use the latest software and cloud based technology.  This ensures that your accounts and tax returns are always completed quickly and accurately. It’s one less concern for you and your fellow directors, allowing you to concentrate your efforts and resources on your own area of expertise.

Payroll Services

As your company grows, you will have to take on more employees to achieve sustainable growth. However, this comes with the requirement of using legislation compliant payroll services. With our experience in this area, we can help you register for PAYE and produce Payrolls with accurate tax and national insurance deductions. We can also provide up to the minute advice on pension Auto Enrolment, P60s and P45s, and all the other Payroll forms, as well as producing pay slips for your employees.

Our payroll solutions are ideal for all small to medium-sized businesses; whether you have 1 or 100 employees, we can take control of your payroll management.

Statutory Audits

If your company meets certain regulatory criteria, a Statutory Audit will required. While most small to medium-sized enterprises are exempt from this requirement, we’re on hand to help and advise you if it becomes necessary. Working alongside you, we can ensure sound financial health for your company, along with sustainable growth that meets and exceeds your projections. 

Financial Guidance

A careful analysis of your accounts and business results can help you pinpoint areas where your company is successful, as well as areas that are open to improvements. This strength and weakness analysis can help your company gain a competitive advantage over your business rivals.

To find out more about how we can help businesses that are currently limited companies, or are thinking of transferring to or starting up as limited companies, contact us today, or call 01743 562430 to arrange a free initial consultation.