Frequently asked questions
Accountancy, Company Formations, Self Employed Registration
What is an LTD?
Private Limited company by Shares. A limited company is an organisation that you set up to run your business. This means that each shareholder’s responsibility for financial liability is limited by the value of the shares that they own but have not paid for. Company directors of such companies are not responsible for business debts.
A limited company can be registered in the UK with Companies House by a single person. This means you can set up a limited company with just one person. This is very helpful for many small business owners who like to work alone or have no need for a business partner.
How much does it cost to set up/starting a Company at Jsa Partners London?
The standard registration fee to set up a company as a ‘standard’ Companies House web incorporation service, we charge £150 for completing the registration including a registered prestige London address for a year, setting up all the required codes ready for accountancy services.
How long does it take to get a company registered?
The company registration generally takes around few days to complete. Once submitted, the company will usually be visible on companies within a day or two.
What are my options when it comes to company names?
You can choose any company name that has not yet been listed and does not require any special permission that you would not be able to obtain.
How many shareholders do we need?
A company limited by shares must have at least one shareholder, who can be a director. If you’re the only shareholder, you’ll own 100% of the company. There’s no maximum number of shareholders.
How many ordinary shares does a company have?
All additional shares of a company’s stock are, by definition, preferred shares. Ordinary shares must be issued by all corporations, as defined in their articles of association, with companies requiring to issue at least one ordinary share to a shareholder.
Can a Person Establish a Company?
Yes, the company can be a one-man.
Do I need to be personally present when starting a company?
No, personal appearance is not required to start a company, the whole process can be done online. The office administration of the company formation is fully automated, it is an online process, but it can also be solved personally through a consultation.
When can I start using my new company?
You can start trading through your new company as soon as you receive notification that Companies House has approved of your application.
How long will it take to add another director?
Once the form has been submitted, the appointment will be recorded and updated on the public Companies House Register within 24 hours. If you send it by post, it will take longer. There is no fee for appointing a new director.
Do I have to sign the paperwork personally?
No signature required, company formation can be done online.
Do I have to have a UK business bank account?
Yes! You should talk to your bank about this. You can open a bank account the day after company formation. The director of the company must provide all the necessary information. It is not possible to open a business bank account with the assistance of a representative, and you will always have to appear in person for identification.
Which banks can I use?
There is no specific or a formal list of Banks, there is a wide range of banks in the UK waiting for you. Just to name a few: HSBC, Lloyds Bank, NatWest, Barclays, Santander and Nationwide, plus many more
How long will it takes to open a bank account?
This varies from bank to bank. In most cases, a bank account will be opened immediately, sometimes it may take longer.
How are dividends taxed?
You may get a dividend payment if you own shares in a company. You can earn some dividend income each year without paying tax. You do not pay tax on any dividend income that falls within your Personal Allowance (the amount of income you can earn each year without paying tax). You also get a dividend allowance each year. You only pay tax on any dividend income above the dividend allowance.
|Tax year||Dividend allowance|
|6 April 2019 to 5 April 2020||£2,000|
What is the self employed registration fee?
Our Self employed Registration fee is starting from £25.00
When can I start my business as self employed?
Self employed registration needs completing within 3 months of the starting date.
Ltd companies responsibilities
Every Ltd company is required to file a corporate tax return for each financial tax year. In addition, employers must file monthly payroll returns and VAT registered companies must submit monthly, quarterly or annual VAT returns.
Self employed tax return
Self employed only need to submit one personal tax return every year. The tax year is always starts on 6th of April and ends on the 5th of April. You must file a tax return by the following year (31 January.)
Who pays corporation tax?
The main answer is simple – corporation tax is payable by all UK limited companies.
A limited company means that the company’s finances are separate from your individual finances, and you can’t be held personally responsible for the company’s debts.
Corporation tax also applies to organisations who are based in other countries, but operate in the UK – with these companies only needing to pay tax on their UK profits.
However, if your company is based in the UK but operates in multiple countries, then you need to pay tax on all profits generated (not just UK activities).
When should I submit my corporate tax return?
At the end of each year of trading, there are 9 months for filing/submitting a return to HMRC and companies house.
How much is VAT?
The standard rate of VAT is 20%.
Do I have to file accounts on a dormant company?
Dormant companies must also submit a Confirmation Statement Disclosure Statement and yearly accounts.
What is the minimum wage?
A new National Living Wage to be introduced in 2020 will see low-paid workers earn nearly a thousand pounds more a year. The new rate of pay will come in on 1 April 2020, a rise from £8.21 to £8.72 for workers over the age of 25, marking an increase of 6.2 per cent.
How much tax will be deducted from my salary?
Personal tax–free allowance 2019-20. Most people are allowed to receive a certain amount of income before having to pay income tax. This is known as the basic personal allowance. In 2019-20, the basic personal allowance is £12,500, up from £11,850 2018-19.
Do I have to file a tax return?
Tax returns must be filed with English sole proprietors, company directors, and foreign income earners. Simple, declared employees have no tax reporting obligations.