We handle a large number of limited companies, most of which we set up for our clients, which tend to be owner managed businesses for whom we have continued to work for many years. Limited Liability does give an entrepreneur important legal protections, but also a certain amount of tax advantage, if well managed.
This way of working for individuals has been an area that HMRC has paid a great deal of attention to, introducing several rules concerning the taxation of dividends and the limitation of certain allowances which reduce Employer’s National Insurance. We are actively helping many clients navigate these rules so as to ensure the best result for their businesses.
The dividend allowance is currently £2,000 per tax year. If you are a sole shareholder in your own Limited Company, don’t miss this allowance in the current year.
SELF-EMPLOYED INCLUDING PARTNERSHIPS
Setting up in business can be very challenging and frequently it is not worthwhile considering setting up a limited company with the attendant compliance and filing requirements.
We can guide you through this process help you with your accounts and ensure you pay the right amount of tax and National insurance making sure you take full advantage of all available tax reliefs. Partnerships (including Limited Liability partnerships) can also be a helpful way of joining forces with other entrepreneurs or family members who participate in your business and are a more flexible means of dividing profits than shares in a limited company.
At Meridian, we have considerable experience working with many clients in this way and are well equipped to guide you here.