Becoming a limited company – is it right for your business?

Becoming a limited company is a major decision for you and your business. Nottingham chartered accountants Clayton & Brewill have put together a helpful guide that explores some of the areas you need to consider when deciding whether to go limited.

Becoming a limited companyChoosing the best structure for your business – be it sole trader, partnership or limited company – will have immediate consequences. There may be tax savings involved in running a company, and this is certainly an important factor. But the calculations are complex. They depend on the level of profit made; the proportion of profit retained in the business; and the type of business. Attention to the remuneration package, business structure and personal circumstances of the director-shareholders is also needed.

Going forwards, incorporation can give you access to tax-advantaged investment opportunities, such as the Enterprise Investment Scheme. You may also be able to obtain tax incentives on research and development.

But incorporation is not just about tax. It also brings many regulatory requirements that you will need to ensure your business complies with. You will have to make returns to Companies House, and set up a PAYE scheme to pay director-shareholders. Such ‘red tape’ may involve you in compliance costs, and making a balanced decision means taking all these factors into account.

Read our guide on Becoming a limited company to find out more.

For help or advice on the best way to structure your company, please don’t hesitate to contact a member of our friendly team.

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Whether you are a limited company, a sole trader or partnership, Clayton & Brewill can take care of your accountancy needs, giving you valuable insight and support and leaving you free to concentrate on other areas of your business.

Corporate tax

Clayton & Brewill offers efficient and cost-effective tax advice and support for owner-managed businesses, sole traders and partnerships.

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Specialist, personal advice on income tax, capital gains tax and inheritance tax.


Clayton & Brewill can help you comply with your statutory audit requirements as well as working with you to use the annual audit to identify areas for improvement and growth.