Limited Company Tax & Accounting

What is a limited company?

A limited company is a separate legal entity from its directors and shareholders. This means its finances and actions are separate from the owners, and gives protection to individuals should their company have difficulties.

What are the benefits of being a limited company?


One of the biggest advantages of running your business as a limited company is the significant tax savings you could make.

VAT registered businesses are already required to comply with Making Tax Digital for VAT. If you are already submitting your VAT return with MTD compatible software, then it makes sense to start doing the same for Corporation Tax as soon as the opportunity becomes available.

Limited companies are subject to corporation tax, which is currently 19%.

If you are a director and shareholder of a limited company, you can choose to take a small salary and draw most of your income from the business in the form of dividends.

By doing this you can minimise the amount of National Insurance contributions you have to pay as well as only paying dividend tax on the income you take from the company, rather than income tax on all your earnings!

Distinct entity and limited liability

A limited company is a completely separate entity from its owners, this means you have reassurance of ‘limited liability’.

Assuming no fraud has taken place, your ‘limited liability’ means you will not be personally liable for any financial losses made by your business. This means a limited company can give you the added personal protection should things go wrong.

Professional image

In some industries being a limited company can help improve your professional image by giving credibility, and making you a more attractive business to work with.

Why choose Treetops as your limited company accountant?

Whilst being a limited company has many benefits (more than shown above!), there are additional requirements you must meet when operating as a Limited company, and Treetops have you covered.


Our approachable team of chartered accountants have years of experience dealing with Limited company compliance across a variety of industries. You can rest easy knowing we are looking after all your legal and tax obligations

Value for money

We give you an upfront fee quote each year and this includes access to us throughout the year. Wanting to grow your business? Have questions you need answering? Then pick up the phone, drop us a line or pop in for a chat with one of our team for no extra cost.

We make it easy to understand

The rules are complex and time consuming, and we know as business owners you are busy being experts in your fields meaning you don’t have time to be accounting experts too! That’s why we make everything simple and easy to understand.

If you are looking to set up your own limited company, or need help with an existing company, we can support you through the process every step of the way.

An accounting expert from Treetops can call you back at a time that suits you.

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