The Benefits of Having a
Limited Company vs. Being Self-Employed
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All in One Services
Whether you’re an individual looking for personal financial help or a business in need of accounting, tax, or financial advice, we’ve got the tools to help you succeed. We’re your one-stop financial shop!
We provide book keeping, Payroll, CIS Return, VAT Return, Tax Return, Annual Accounts And Returns to Limited Companies.
Understanding the Difference
Self-Employed
When you are self-employed, you run your business as an individual and are personally responsible for its debts. This structure is straightforward and involves less administrative work.
Advantages:
- Simplicity:
Easy to set up and run with minimal administrative burden. - Control:
Complete control over business decisions and profits. - Flexibility:
Simple tax filing and fewer regulatory requirements.
- Simplicity:
Disadvantages:
- Unlimited Liability:
Personal assets are at risk if the business incurs debts or legal issues. - Tax Rates:
Potentially higher tax rates as profits are subject to income tax. - Perception:
May be viewed as less credible than a limited company.
- Unlimited Liability:
Limited Company
A limited company is a separate legal entity from its owners, offering several advantages in terms of liability, tax, and business perception.
Advantages:
- Limited Liability:
Owners’ personal assets are protected; liability is limited to the amount invested in the company. - Tax Efficiency:
Potentially lower tax rates, as profits can be subject to corporation tax, which is often lower than income tax rates. - Professional Image:
Enhanced credibility and professionalism in the eyes of clients, suppliers, and investors. - Investment Opportunities:
Easier to raise capital through the sale of shares. - Pension Opportunities:
Ability to pay into a director’s pension scheme, providing tax advantages.
- Limited Liability:
Disadvantages:
- Complexity:
More complex to set up and run, with increased administrative responsibilities. - Regulations:
Must comply with more stringent regulatory requirements, including filing annual accounts and corporate tax returns. - Costs:
Higher setup and ongoing costs compared to being self-employed.
- Complexity:
Which Option is Right for You?
Choosing between being self-employed and forming a limited company depends on various factors, including the nature of your business, financial goals, and risk tolerance.
A Limited Company Might Be Right If:
- You want to protect your personal assets from business liabilities.
- You are aiming for tax efficiency and potential tax savings.
- You seek to enhance your business’s credibility and professionalism.
- You plan to reinvest profits or raise capital.
Being Self-Employed Might Be Right If:
- You prefer simplicity and minimal administrative burden.
- You want complete control over business decisions.
- You are operating on a smaller scale with lower risk exposure.
How TMO Financial Services Can Help
At TMO Financial Services, we provide expert advice and support to help you choose and manage the best business structure for your needs. Our services include:
- Business Setup Consultation:
Guidance on choosing between self-employment and a limited company. - Company Formation:
Assistance with the incorporation process and setting up your limited company. - Tax Planning and Compliance:
Expert tax advice and compliance services to ensure you maximise tax efficiency. - Ongoing Support:
Continuous support with bookkeeping, accounting, and regulatory compliance.
Get in Touch
Make the right choice for your business with TMO Financial Services. Contact us today to learn more about our services and how we can support your business structure decisions.
- Phone: [07305 144334]
- Email: [themoneyorbit@gmail.com]
- Address: [The Crescent, Slough SL1 2LJ]
TMO Financial Services – Your Trusted Partner in Business Structure and Financial Management
Contact us to unlock Your Business Potential
Take control of your financial journey today. Contact us to discover how our tailored solutions can empower your business’s growth and success.
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Explore our Services
BOOK KEEPING
Book keeping is necessary not just to keep track of your company’s financial status, but also to ensure regulatory compliance. Building and maintaining bookkeeping and accounting records takes a lot of time and work. To make it easier for you to keep track of your finances, The Money Orbit offers a wide range of accounting and bookkeeping services.
CIS RETURN
Construction companies that are members of the Construction Industry Scheme can take advantage of our services (CIS). Our specialist team will complete your monthly CIS return, alerting tax you owe HMRC or how much money HMRC may owe you, and ensuring that you pay the correct amount of tax
PAY ROLL
Payroll management is a miserable task for any organisation because it takes a lot of man hours and does not generate revenue. It’s exhausting because rules and regulations are always changing. Why not outsource your payroll processing to The Money Orbit to avoid this laborious task? Simply provide us with the payroll data, and we will provide you with a sustainable, confidential, and accurate payroll processing solution.
VAT RETURN
Completing your VAT returns can be tough and take up a lot of your time. But don’t worry! You can save time and stress by letting us handle it for you. When you trust us with your VAT reporting, you can relax knowing that experts are taking care of everything for you. So why stress over it? Let us handle the hard work while you focus on what matters most to you.
TAX RETURN
Our team of expert accountants is here to assist you with all your tax return needs. Whether you’re dealing with Construction Industry Scheme (CIS), Value Added Tax (VAT), individual, or company accounts, we’ve got you covered. Rest assured, with our professional support, your tax matters will be handled efficiently and accurately.
ANNUAL ACCOUNTS & RETURNS
Some accounting obligations, such as compiling yearly statements, might be delegated to our staff. We collaborate with you to fully comprehend your business scenario, and adapt according to your needs so that we can give you with the exact solution you desire. The profit and loss balance is prepared by our skilled staff based on the individual demands of the customers.
NAVIGATE YOUR BUSINESS JOURNEY WITH EXPERT FINANCIAL GUIDANCE
Certified Accountants
Business &
Financial
Advisors
The Money Orbit is a well-known and expanding company that offers accounting services in Slough and across the UK. Unlike traditional accounting firms, we’re a growing team that offers creative solutions to our clients’ questions, helping them concentrate on their business strategy.
