VW Taxation Ltd
Accountants for Limited Companies
If you are a time-strapped limited company director with too many balls in the air, VW Taxation can help make life easier. We offer a range of limited company accountancy services to save you time, hassle and money.
At VW Taxation, our friendly, straightforward team is here to take the stress out of limited company accounting. Our cost-effective services can help relieve the burden so that you can devote more energy to your business. From simple bookkeeping to expert financial advice, we’ve got your back.
To arrange a meeting, get in touch or feel free to drop into our Portsmouth office.
What is a limited company?
Many small businesses start life in a sole trader structure before establishing a limited company. There are many advantages of doing so, including limited liability status. As a sole trader, you are personally responsible for your business debts, but as a limited company director, you are a separate legal entity, and so your personal assets are protected.
The other main benefit is tax efficiency. Limited companies pay Corporation Tax which can offer a considerable saving compared to Income Tax if your profits put you in the higher rate band. Plus, it’s easier for directors to take money out of the company in a tax-efficient way, such as a salary, dividends or director’s loan.
To become a limited company, you must register with Companies House. From there on, you will have more legal responsibilities and annual filings to make, which is where a good accountant can add value.
Why does a limited company need an accountant?
As a limited company owner, there’s no rule saying that you have to have an accountant. But, running a limited company comes with complex financial and legal responsibilities. An accountant can help ensure you stay compliant with tax laws by establishing accurate record-keeping and filing company accounts with HMRC and Companies House.
When it comes to the construction industry, this is particularly important. The Construction Industry Scheme (CIS) is notoriously complex and most busy firm owners simply don’t have time to stay up-to-date with the rules and regulations. An accountant can take the pressure off and make all the necessary calculations and submissions.
What’s more, a limited company accountant can help you to save money. They can spot potential tax savings and help avoid mistakes to make sure you pay the right amount of tax; neither too little – or too much!
What are the benefits of hiring a limited company accountant?
We understand that accounting services are an investment for small businesses, so you need to be sure of the benefits. At VW Taxation, we’re here to strip away the jargon and take care of the heavy lifting when it comes to managing your limited company accounts. Here are a few of the advantages of our services:
Save time and hassle
Save money
Remain compliant
Our limited company accounting services
At VW Taxation, we offer a range of essential limited company accounting services to help your business run smoothly and profitably.
Bookkeeping
Every successful limited company knows the importance of good bookkeeping. It’s essential to keep your financial records up-to-date so that you have an accurate view of your income and expenditure at any given time.
Bookkeeping is key when it comes to staying on top of debtors, managing cash flow, submitting annual returns and budgeting for the future. Our expert accountants will help to establish simple and hassle-free bookkeeping using appropriate accounting software so that your business avoids any financial bumps in the road.
CIS accounting
If your business is in the construction industry, then you’re likely registered for the Construction Industry Scheme (CIS). Understanding and managing CIS is crucial. Fortunately, VW Taxation is an expert in CIS accounting and will help you understand your tax position and responsibilities in plain English.
We can help verify subcontractor status, calculate Income Tax and National Insurance deductions, and also take on the admin by submitting your CIS returns to HMRC.
Company formation
If you are starting a new business or making the transition from sole trader to limited company, we can take care of the company registration process. We’ll register your business with Companies House on your behalf, so you can put your energy into trading as soon as possible. As your limited company accountant, we’ll also make sure you know what you need to know in regard to your new responsibilities as a limited company director.
Corporation Tax returns
Your company tax return must be submitted at your business’s financial year end to avoid costly fines. If your accounting records are managed well throughout the year, this shouldn’t be a particularly difficult task.
As your limited company accountants, we will keep your books in excellent shape throughout the year with accurate records of your income and expenditure. This will help your Corporation Tax return go without a hitch, and as an added bonus, you will know your tax liability well in advance, so there are no surprises.
Annual accounts
Doing the annual accounts can feel daunting when you’re trying to manage multiple projects and keep your clients happy. With a professional accountant like VW Taxation by your side, you can rest easy.
We will help keep your finances in order throughout the year so there’s no mad scramble when it comes to compiling your year-end accounts. We’ll also submit them to Companies House and HMRC in the correct format using compatible accounting software.
VAT returns
Value-Added Tax (VAT) is a major bugbear of a lot of limited company owners. You are expected to act as a tax collector on top of your already long list of responsibilities! At VW Taxation, we live and breathe VAT. We can advise on which VAT scheme to choose, as well as calculate and submit your quarterly VAT returns in line with Making Tax Digital.
Contact VW Taxation, accountants for limited companies
VW Taxation is a friendly team of limited company accountants based in Portsmouth. If you are a hard-working limited company owner, why not reach out to us and allow us to make your life a whole lot easier?
Our fees are transparent, with three simple price structures and no hidden costs. Our happy clients consider our services as an investment in their business, offering access to a comprehensive range of services and expert tax advice just a phone call away.
We are dedicated to helping self-employed people in the Portsmouth area understand their tax responsibilities and can provide all the support you need to make your business a financial success. For personalised advice, drop us a line, and we’ll be in touch.
FAQs
How do I find an accountant for a limited company?
The right limited company accountant for you may not be the same as the business next door, which is why it's important to do your research. Your budget is obviously a major factor, but be sure to look at reviews to gauge experience and a good quality of customer service.
At the end of the day, you're going to spend a lot of time talking to your accountant and will be sharing the most confidential information about your company with them. So it's important that you get on with them as well as have trust in their abilities!
At VW Taxation, we offer a friendly, personal service that our self-employed clients really value. We welcome drop-ins at our Portsmouth office, so feel free to pop in and introduce yourself for a chat.
How much tax does a limited company pay?
Limited companies pay Corporation Tax on their profits. If your limited company makes in excess of £250,000 a year, Corporation Tax is charged at 25%. If your business makes less than £50,000, you pay the 'small profits rate', which is 19%, and you may receive 'marginal relief' on any earnings between £50,000 and £250,000.
These rates are for the 2023/24 tax year and are correct as of September 2023.
What financial records should a limited company keep?
A limited company is required by law to keep financial records, including accounts of income, expenses, and business transactions. The business also needs to keep balance sheets, profit and loss statements, bank statements, invoices, receipts, tax records, and payroll documentation in line with HMRC and Companies House requirements. A professional accountant can ensure that you keep the right records using appropriate accounting software.
Do limited company directors pay personal tax?
If you are a director taking a salary from your limited company, then it is taxed at source via PAYE. If you take any income outside of your company salary, for example, in dividends, you must complete an Income Tax return and send it to HMRC. Your own dedicated accountant can be very valuable in this respect and help you identify the best way to remunerate yourself to pay less personal tax.
