There is one main rate of corporation tax of 19%. The corporation tax rate reduces to 17% from 1 April 2020.
How the tax system works for companies.
Although you can set up a limited company by buying a company online or 'off the shelf', it is usually advisable to seek our professional advice. There are so many options and pitfalls we strongly recommend working with us on your new business venture. Is it advisable to use a limited company? What are the tax benefits and consequences?
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.
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.
Details of how the tax system charges tax on a company car.
In many small companies, the owners are also the directors, and this gives importance to how income is extracted from the company.
Expenditure incurred before the company year-end might reduce the current year's tax liability instead of next year's.
HMRC charge interest on underpayments of tax, and pays interest (repayment supplement) on overpayments.
The Companies Act comprises approximately 1,300 sections.
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.
Who is a director and what are their legal responsibilities?
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 position of company secretary in a private company is now optional. Thus a company can operate with a sole director.
A private company (not subject to insolvency proceedings) can apply to the Registrar of Companies to be struck off the register and dissolved.