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Starting a business can be complex, whether you become a sole trader or set up a limited company. There’s a lot to remember, even before getting to grips with HMRC compliance and tax returns. It’s why many businesses outsource their tax and finances to an accountant, especially limited companies which have extra needs.

How do people choose what type of business to run?

Our article about choosing between a limited company or sole trader business explains this in more detail, but there are key tax differences between the two.

Becoming a sole trader is relatively quick, and the profits are yours to keep after you’ve paid your bills and tax. Most sole traders submit a self assessment tax return to HMRC each year.

For some businesses it’s more tax efficient to form a limited company, depending on how much money the business earns.

Do I need an accountant for my limited company?

Having an accountant for your limited company isn’t actually a legal requirement, though it’s an advantage. As well as preparing company accounts each year, an accountant can help a limited company be as tax efficient as possible.

As a director you’re legally separate to your limited company, which means you pay tax separately too. This effects how much tax you pay, and your accountant can help you optimise this.

 accounting services for limited companies

What else can an accountant do for a limited company?

Accountants have a lot to offer a company at every stage, from incorporation at Companies House onwards. Outsourcing is often a cost effective solution, saving time and money.

Trying to deal with every aspect yourself, at the same time as running your limited company, can make it difficult to stay up-to-date. Sadly, this brings with it the risk of late submissions or incorrect data leading to penalties or even prosecution.

Getting help with accounting compliance

Dealing with the industry on a daily basis means accountants are aware of upcoming changes, as well as what they might mean for your business.

This sort of insight is invaluable, helping you to plan in advance and minimise any interruptions.

Even before you decide to form a limited company, an accountant can advise you what your options are, to help you get the most from your new business.

Dealing with HMRC can be daunting, especially if you’re new to owning a company. An accountant with experience of dealing with HMRC and businesses can offer a lot of reassurance.

Talk to one of the team about our digital accounting services for limited companies. Call 020 3355 4047, or request a free call back.

About The Author

Christopher Jones

Forensics graduate-turned copywriter and blogger. I love turning complex topics into easy to understand, yet engaging pieces of content.

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