Monthly Payroll

PAYE is HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employees.  As an employer, you normally have to operate PAYE as part of your payroll.

If you are a limited company or sole trader with one or more employees, you have to register a PAYE scheme with HMRC.  We can do this for you.

We can then file payroll details, calculate PAYE tax and calculate National Insurance Contributions due online using HMRC’s RTI (Real Time Information) system. This can be done either on or before the date that wages are paid.

Using this system means we will be able to produce monthly payslips for you.  These will give full details of gross and net pay following deductions including tax, national insurance contributions, pension payments and child maintenance payments. Simply tell us the pay that’s due to your employees and we do the rest.

If you don’t comply with RTI reporting regulations, you will have to pay a penalty.  This will depend on the number of employees you have in the PAYE, and how late you are to submit.

Yes. Every year, we will calculate directors’ wages in a tax efficient way, suggesting a combination of pay and dividend depending on each directors’ personal circumstances.

All employers have to provide a workplace pension scheme operated through their PAYE payroll, and contribute to it. 

Any employee who usually works in the UK, is a worker, between 22 and state pension age and earns over £10,000 a year must be automatically enrolled in your workplace pension scheme.

If the only employees on the payroll are directors, you don’t need to set up a workplace pension scheme.

Employers must also keep all employees separately fully informed regarding any statutory changes in their workplace pension.

Yes.  Directors taking income from the company have to be given a payslip and end of year P60.

For more information on this, please contact us.

CIS (Construction Industry Scheme)

If you work as a subcontractor in the construction industry, you have to register for CIS – the Construction Industry Scheme. CIS is administered through a payroll scheme. We can do this for you.

All CIS deductions relating to your limited company will then be part of the data submitted to HMRC via your monthly payroll. This will then be automatically offset against payment of PAYE/NICs/CIS due.

Your subcontractors and contractors must also be registered with HMRC. HMRC will tell the contractor whether they should deduct 20% or 30% tax.

We make it easier for you to pay tax via the CIS scheme.

Yes, you do. This is a legal requirement.

 

 

HMRC deducts tax from your invoices to ensure that advance tax payments are made. In certain cases, you will be able to get a refund at the end of the tax year (5th April).

 

When you register as self-employed with HMRC, you will be allocated a unique taxpayer reference – a UTR.

 

 

Yes. You will need a UTR so you can register for CIS. Then, once you file your self-assessment tax return, you may get a refund.

 

 

Yes. You should supply payslips to contractors in the same way as you do for your employees.

If you’re a limited company which has been trading for at least 12 months, you can be paid without deduction of CIS tax.

For more information on this, please contact us.

New Limited Company Formation

Sole traders and partnerships are liable for business debts. However, if you set up a limited company this is a separate legal entity and will protect your assets from creditors.

Limited companies can also reduce your personal tax liability, and shares can be issued to family members. This reduces the impact of inheritance tax.

We can help you to incorporate a new company, so you are legally compliant from the start.

We will verify your ID and search for available company names.  We will then incorporate your new company to include one director shareholder, with 100 ordinary shares.

We will also enter you on the “Register of People with Significant Control” at Companies House.

In 2016, Companies House introduced a “Register of People with Significant Control” (PSC Register).

Thanks to this legislation, all limited liability partnerships and private limited companies in the UK are legally required to register anyone who has significant control or influence over the company.

Once we have incorporated your company, we will provide you with:

  • An allocated standard industrial classification (a 4-digit code which describes your main business activity)
  • A Certificate of incorporation
  • Memorandum and Articles of Association
  • Company register containing details of directors, shareholders, etc

Yes. If we are not acting as your company secretary, we can also offer the following services for an additional fee:

  • Allotment of shares, registration of additional shareholder/s and share transfer/s
  • Appointment of additional director/s
  • Registration with HMRC for corporation tax purposes
  • Registration with HMRC for VAT and/or PAYE as required
  • Registration for Companies House web filing and electronic PROOF scheme
  • Registration with Companies House to receive reminders for filing dates

For more information on this, please contact us.

Corporate Company Secretary

Running a limited company comes with legal requirements.

Each company must have at least one director who is legally responsible for running the company, making sure accounts and reports are properly prepared, and statutory documents are delivered on time. If you fail to deliver statutory documents on time this is a criminal offense.

Many companies use an outsourced company secretary to take on some of the director’s responsibilities. We offer this service to protect shareholders and owners of small private companies.

Company secretaries provide many services which will help you run your business and remain legally compliant.

Choose us as your company secretary, and we can provide a dedicated address for statutory communications so that all correspondence is opened and dealt with in a timely matter.

 

Yes. We can advise on issuing shares; both who should have them and the number and share class allocated to each shareholder. We can issue share certificates and dividend vouchers for each shareholder, prepare resolutions and register share transfers.

 

 

Yes. We can liaise with your accountants and ensure that financial statements meet the statutory deadlines for Companies House and HMRC.

We can take care of your statutory compliance filing online at Companies House, including annual accounts and form CS01 confirmation statement (formerly called your ‘annual return’).

We can take care of your statutory compliance filing online with HMRC including company accounts and CT600 company tax return.

Finally, we can maintain your company register.

For more information on this, please contact us.

Shareholders’ Agreements

Each shareholder in a limited company has certain rights which are defined by the class and number of shares that they hold.

A shareholders’ agreement protects these rights and provides contingency planning for the future.

Once a shareholders’ agreement is drawn up and agreed by all parties, it sets in writing a clearly defined strategy to protect the company’s assets and avoid disputes if there are anticipated or unforeseen events in the future. We can draw up shareholders’ agreements, so you protect your assets in the future.

Yes. Your shareholders’ agreement will ensure that assets are distributed in accordance with your wishes in the event of a director’s death.  It will also protect the company’s business assets, making sure that the assets don’t form part of the director’s estate. This means that there cannot be any pressure from the director’s family around selling or agreeing a price for the shares.

The agreement can also feature a plan to follow in the event of mental or physical illness of a director, so you can maintain control of the company. 

In the case of a divorce of a director shareholder, and the need to sell or transfer shares, the shareholders’ agreement will establish a strategy to maintain control of the company.

Yes.  Your shareholders’ agreement will cover retirement strategies so you can establish a pre-defined business succession plan.

When a shareholder/director wishes to retire, the agreement will set out the financial details for the sale of shares, normally giving co-directors the option to buy.  This avoids any potential disagreements.

 

You want to maintain continuity of control in your company so your shareholders’ agreement will cover what happens in the event of internal management disputes or protection against creditors.

The shareholders’ agreement will cover how to wind up the company when all parties no longer wish to continue, particularly regarding the distribution of the company’s assets.

For more information on this, please contact us.

 

Buy-to-Let Corporate Ownership

If you are thinking about buying a buy to let property, there are now significant advantages of owning it through a limited company. We can form this company for you, as well as giving advice on taxation and obtaining finance for property purchase.  Our corporate company secretary service deals with all required share allocations and related matters.

No. Any rental profits generated do not have to be entered on your personal tax returns, or taken, if you own a property through a limited company.

Yes.  From April 2018 dividends can be paid tax free up to £2,000 per annum.  We can also allot shares in the company to family members, so dividends are tax efficient.

No, a limited company does not have to pay the extra stamp duty (stamp duty land tax surcharge).

If a limited company owns a property, the capital gain is taxed at 19%.

However, if you own it directly, your capital gains are added to other income and once the 40% high rate threshold is reached, will be taxed at 28%.  

Owning a property through a limited company also means that you can leave shares to beneficiaries which will avoid capital gains tax liabilities when the property is sold. 

Conversely, properties owned directly would form part of your assets and would be taxed at the highest rates of tax applicable.

What’s more, from April 2017 mortgage interest relief has been restricted to the basic rate of tax, currently 20%. Higher rate taxpayers can no longer claim high rate tax relief. However, but limited companies are not affected as they are just liable for corporation tax.

Lastly, when you sell a property owned by a company, any profit can lead to a reduction in tax thanks to indexation.

For more information on this, please contact us.