Company Formation

Should you go limited?

Incorporating as a limited company is one of the most significant decisions a self-employed person can make. Done at the right time, it can reduce your tax liability significantly, limit your personal liability, and give your business a more professional image. Done too early — or structured incorrectly — and the benefits may not outweigh the additional compliance costs.

We'll start with an honest assessment of whether incorporation makes sense for you right now, based on your current income, future plans, and personal circumstances.

What's included

• Honest advice on whether incorporation is right for you
• Companies House registration (incorporation) handled on your behalf
• Choice of company name guidance and availability check
• Memorandum and Articles of Association
• Confirmation of directors and shareholders
• Share structure advice (including alphabet shares for family members)
• Registered office address service (if required)
• Corporation tax registration with HMRC
• VAT registration advice and application (if applicable)
• PAYE scheme set up with HMRC
• Business bank account referral
• Cloud accounting software setup
• Handover briefing — what you need to do as a company director

The tax benefits of going limited

For higher-earning self-employed people, incorporation can offer substantial tax savings:

• Corporation tax rate (currently 19–25%) is often lower than income tax rates
• Directors can pay a small salary (below the NI threshold) and draw the rest as dividends, reducing National Insurance significantly
• Profits can be retained in the company and drawn in future tax years, allowing income to be smoothed for tax purposes
• Greater pension contribution flexibility through the company

We'll run the numbers for you before you decide, so you know exactly what the financial benefit (or cost) of incorporation will be in your specific situation.

Your obligations as a director

Running a limited company comes with legal responsibilities. As part of our company formation service, we'll brief you on everything you need to know — from filing deadlines to the legal duties of a company director — so nothing takes you by surprise.