Income Tax Calculator

Should Your Company Go Limited?

Whether you’re going it alone or creating a new company that’ll see fresh employees on the payroll, setting up a new business can be an administration nightmare. What tax code should I be on? Do I need a PAYE calculator? Can I claim tax back for my employees or should they do it themselves? Is there an official salary calculator I should use? What about National Insurance contributions?

Before your head explodes, here are a few benefits that may sway the essential question – should my new company go limited?

•    Protection of personal assets. This is perhaps the key benefit of registering your company as limited. It enables the company to exist as a legally separate entity from personal assets (e.g. home and savings). Should the business fail, the axe falls firmly on the company’s assets.

•    Brand image. Taking your company limited could open a lot of new doors with regards to financial backing. No matter how small the day to day running of a business, the limited label presents an element of professionalism often valued by clients. Creating shareholders via selling shares in your company is another key financial benefit of going limited.

•    Legal clarification. In all business, from our salary calculator through to your home office or factory floor, clear legal borders are vital. Registration of a company as Limited protects assets including logo and name.

•    Future provision. Guaranteeing the future of a business is obviously wise. By registering as Limited you’ll essentially be creating a legal persona for your company, meaning the business can continue in the event of director/business partner resignation, death or sale.