Top Five Tips for Limited Companies

Do not start business as a company without reading the tips below:

Compliance obligations - Be aware of the onerous compliance obligations which need to be met by companies and put notifications in your calendar months in advance of the obligations falling due. This will help you to prepare for such obligations and put you on the front foot!
No, the money does not belong to you! - Companies are separate legal entities and this means that every single pound generated as a result of your hard work belongs to the company, not you - this is different to the position for sole traders. Therefore, please do not make the mistake that many people in your position make by living from the company bank account!
As the money received by the company belongs to the company, you will need to consider ways of remunerating yourself. This would typically be by way of salary, dividends, pension contributions or perhaps a combination of all of the above.
Record keeping - Use a bookkeeping software, like QuickBooks, which links to your bank account and allows you to categorise your income and expenditure. This will help you to better understand your business and also enable you to produce helpful reports at the click of a button - a go starting point for us to discuss your business performance periodically. bookkeeping software will also prepare you for Making Tax Digital!
VAT registration - Make sure you keep an eye on your turnover levels and expected future turnover levels and speak with your accountant on a regular basis to understand whether you may need to consider registering for VAT.
Failure to register for VAT on a timely basis may cause problems!
Build a 'team' - - Please remember that all the money you work so hard to generate does NOT belong to you! Our trusted friend, the Tax man (HMRC) is due a slice of the cake! We therefore recommend that you put aside approximately 30% of all income generated by your business in preparation for settling your tax and NI liabilities.
Running a business is challenging and time consuming. You need to build a team of experienced and competent specialists who can act as your sounding board. Such a team will help you to navigate the many challenges, pitfalls and problems you will likely face along the way.

As a minimum, consider finding:

a great accountant and business advisor (Review our client testimonials)
an understanding and knowledgeable mentor.