10 x ADVANTAGES of a Limited Company | Starting a Ltd Company UK

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Honest Money

Honest Money

2 yıl önce

The ADVANTAGES and DISADVANTAGES of setting up a private Limited company. What are the benefits of opening an Ltd company when starting a new business and how does having a Limited company compare vs being a sole trader?

I have been running Ltd companies for over 10 years and in this video, I share with you the real-world advantages and disadvantages of Ltd companies.

Advantages of Private Limited Company:

• Limited Liability (Personal and Business Finances Separate)
• Professional Image
• Name Protection
• Potential Tax Savings
• Basic Salary + Dividends (Link to Directors Salary 2020/2021 Below)
• National Insurance Avoidance
• Pension Contributions are Tax Deductible
• Income Can Be Spread Over Multiple Years
• Easier to Sell
• Only Costs £12 - www.gov.uk/set-up-limited-com...

Disadvantages of Private Limited Company:

• More Complex Accounting / Administration Requirements
• Higher Accountancy Costs
• Annual Accounts
• Annual Corporation Tax Return
• Annual Confirmation Statement (£13)
• Payroll and RTI
• Directors Details & Company Financials Available for Public Viewing
• Self-assessment Mandatory for Directors

How to Pay Yourself as a Ltd Company - Directors Salary 2020/2021:
www.youtube.com/watch?v=1NN3n...

Are you thinking about setting up an ltd business? What are you thoughts on sole trader vs limited company? Let me know in the comments!

YORUMLAR: 105
Honest Money
Honest Money 2 yıl önce
How to Pay Yourself from a Ltd Company (Directors Salary 2020/2021)
Alastair
Alastair Yıl önce
Very clear and succinct video. Kudos. Would be great if you could make a video on a Sole Trader vs starting a limited company. For example in which situations you are better off having one or the other and if you earn 50 - 70k per year how much better off would you be with a limited company rather than sole Trader after tax and all expenses. Keep up the good work 👍 Just subscribed
Boneamps
Boneamps
Great video Darren! I like your straightforward and to the point style. It would be great if you could go into a bit of detail about the trademark bit for your business, and how much risk is there from legal trolls registering the trademark first and then suing you for it. Thanks!
Samanthwalter Archie
Samanthwalter Archie
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Ash El
Ash El 2 yıl önce
Another fantastic video very well explained. Can you make a video on property purchase via limited company vs individual? Keep up the great work 👍🏼
P Wylie
P Wylie
Great video Darren.
Malcolm McInnes
Malcolm McInnes Yıl önce
Hi, brilliant video as always. I have a minor question about the disadvantages. Is it the case that if a director only has PAYE income from the company, they don’t have to register for SA? I understand that HMRC used to insist that all directions had to register for SA but have relaxed their policy. Can you advise?
BenS
BenS Yıl önce
Great video - would be great to see a video on the paperwork a small business director will need to do i.e. annual returns, tax etc
Andrea Castegnaro
Andrea Castegnaro Yıl önce
Do you have advantages like on deducting payments for equipment (let s say you do photography) from the taxable amounts? Or can you do that as a sole trader as well?
Supersu42
Supersu42 Yıl önce
Any advice for hiring your first few staff? How would that affect the national insurance avoidance?
Image On Workwear
Image On Workwear Yıl önce
Great video Darren, really clear and easy to understand, made so much sense as a new director as of tomorrow!
Martyn Jukes
Martyn Jukes Yıl önce
As a tradesman I find limited companies work if you have employees and supply goods but if you're just supplying your own labour then sole trader works way better.
BigPofty
BigPofty
Informed, balanced and succinct. Much appreciated 👍
Susu A.
Susu A. Yıl önce
Hello, thank you for your video. I was told that as a limited company you do not file self assessment, could you pls expand on that? Thank you
LaraKnowsBest
LaraKnowsBest Yıl önce
Thanks for your your videos, the way you explain things really stick with me. Can you please make a video about pension and the most efficient way to invest as a limited company owner?..like what's best.. isa vs private etc..
KitPimp UK
KitPimp UK Yıl önce
Good videos mate, I just started one to come off benefits and the admin side is quite simple when you understand how things are done
Himanshu Maheshwari
Himanshu Maheshwari
Would love to see a video discussing about the potential tax saving. keep up the good work mate, Cheers!
Bailey’s Adventures
Bailey’s Adventures 2 yıl önce
Hi Darren, keep up the videos on both amazon and the honest money, they are both great and have very valuable information! Do you have any content relating to running a ltd company while still in full time employment? Thanks.
abd akd
abd akd Yıl önce
Very useful, thank you for sharing. For someone who would like to set up a limited company using one of the services that provide a registered address, is it a good idea? if so, are there any recommendations? Thank you
mohammad fahad
mohammad fahad Yıl önce
Thanks for informative video. Is this applicable for UK branch of overseas companies? What is the process of setting up a UK branch of overseas company?
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