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Starting your own Limited company can be one of the best things you have ever done for your career but also one of the most daunting and confusing too. Foremans have put together this little guide to make it a little bit clearer! If you’re still confused at the end of it, give us a call and we can go through it with you, or better yet, help you with the administration! 

Once you’ve done your research into your market and you’re happy to go ahead you need to first incorporate your Limited Company at Companies House. You will need to appoint yourself as the director and register your shareholders (this can just be you but you can appoint other shareholders too). You’ll also need a Registered Office address; this doesn’t have to be where you work from but this is where Companies House, and often HMRC, will send all correspondence. 

Once your company is all set up, Companies House will provide your Certificate of Incorporation. You should also save copies of your Articles of Association, Share Certificates and any Shareholder Agreements. You will then need to set up a business bank account. You should always keep your business finances apart from your personal finances and make sure you keep a record of every transaction. If your accounts are separate it’s much easier to keep everything organised! 

You may have to register for VAT depending on how much your annual turnover is. For small companies with an annual turnover less that £150,000 you can also register with the Flat VAT rate scheme, which means you pay HMRC a flat percentage of your sales depending on the industry you work in (you still charge your customer VAT at 20% though). You’ll also need to register for Corporation Tax. All Limited companies have to pay tax on their profits. You will also have to pay any personal tax due on the income you receive from your company, such as a salary or dividends. Don't worry though - with good accountancy advice and some forward planning you can ensure that you minimise your tax liability and avoid any unexpected tax bills.   

It’s always a good idea to get insurance for your business. If you’re going to employ anyone you’ll need Employer’s Liability Insurance. It’s also a good idea to have public liability insurance to cover you should anything happen to anyone who might be affected by the provision of your services. Professional Indemnity insurance will cover you against any claims made against your work, such as negligence or loss of goods.

Foremans can do all of this for you, so you can focus on running your business. We also offer free Employers Liability Insurance, Public Liability and Public Indemnity insurance in all of our packages. At Foremans you are assigned your own personal Client Liaison Advisor and Accountant who know exactly what’s going on with your account. We can also assist with setting up a business bank account and ensuring you get 2 years’ free business banking. Foremans will advise you on ways you can maximise your income. 

Give us a call on 01244 625500 for free advice!