One of the methods of setting and running a business in the UK is by incorporating a limited company.
The new company will be a resident in the UK by incorporation and all the worldwide income and gains will be taxable under the corporation tax.
The company set up in the UK will pay corporation tax at 19% on the net profit earned from trading.
This tax is due nine months and one day after the year-end of the company.
The company that has been set up in the UK might also have to register under tax such as value-added tax, PAYE etc.
The value added tax (VAT ) is applicable when you taxable sales is over £83,000 in accounting year.
If the business intends to employ staff in the UK,the business will have to register for PAYE to deduct tax and national insurance.
Steps in setting up a limited company.
- The new business will be registed with the company house.
- You must check if the proposed name is availabe for registration.
- The number of shares that you want to have in the company .
- You will need the details of the proposed directors and shareholders.
- When the business is registered, the next thing is to open a UK business bank account.
- The company opened is a legal entity and a business account is a legal requirement.
- Also, you will be sent various letters from both the company house and HMRC.
- They will contain important information that you will need in running business owners,
information such as company number, authentication code,
unique tax reference numbers etc.
Conclusion on setting up a company in the UK .
Thanks for reading this blog post, I hope it has been informative.
If you would like me to support you in setting up a limited company in the UK,
kindly contact me at https://taxgirl.co.uk/contact/
