Our Services
Our Service to You
Discover more about our extensive range of professional services. We constantly update this page, but if you still can’t find what you’re looking for, please feel free to get in touch with us – we will be more than happy to help.
We offer a fixed fee service so that you know how much our services are going to cost in advance.
Our Services
Virtual Finance Office (VFO)
A VFO replaces the in-house finance team with an external virtual finance team.
We can process your day-to-day transactions, file VAT returns and run payroll, but in addition to this we can support with financial policies, budgets, cash flow and other advice.
This means you don't need to recruit, train and manage an employed team, and can focus your time on growing your business.
All for a fixed monthly fee so you know your costs in advance.
Making Tax Digital (MTD)
We are up to date with the new Making Tax Digital rules being introduced from April 2026 for landlords and the self-employed.
Make sure to check out our blog
to see if (or when) this affects you.
We can assist with your digital record keeping and the quarterly submissions to HMRC. Or if you'd just like some help setting it all up then we can offer implementation and training to get you started.
Accountancy
We can prepare year end accounts for sole traders and small limited companies using current UK accounting standards.
For sole traders we will provide accounts and information to be included on your tax return.
For limited companies we will provide accounts for filing with Companies House and HMRC.
Personal Tax
We can prepare your annual self assessment tax return and provide advice on a variety of issues.
We can also provide advice on tax efficiencies.
Corporate Tax
We can prepare your limited company's tax return for submission to HMRC (with the annual accounts).
Bookkeeping
Weekly, fortnightly or quarterly bookkeeping available. We use cloud based software and are Xero Certified Advisors so that we always have access to your financial information and can provide timely advice.
VAT
We can prepare your monthly or quarterly VAT returns. This can be in addition to a bookkeeping service or we can review your records and prepare VAT returns from them.
Payroll
Monthly, quarterly or annual payroll available. This will include RTI submissions required by HMRC, full calculations and payslips.
Blog posts
Understanding the Salary and Dividend Strategy As a company director, you can choose how to pay yourself: via a salary, dividends, or a mix of both. Each method has different tax implications, so structuring your income efficiently can lead to significant savings. Salary – subject to Income Tax and National Insurance but allows you to qualify for state benefits and pension contributions. Dividends – paid from company profits after Corporation Tax, taxed at lower rates than salary but do not count towards National Insurance contributions or earnings for pension contributions. Setting a Tax-Efficient Director’s Salary There are various thresholds to consider when looking at the salary level: At the National Insurance (NI) Lower Earnings Limit (£6,396 for 2024/25) – no NI contributions due, but qualifies for state benefits (including state pension). Below the NI Secondary Threshold (£9,100 for 2024/25) – employers NI becomes payable if salary exceeds this amount. Below the NI Primary Threshold (£12,570 for 2024/25) – no personal tax or employees NI to pay, but employers NI would be payable. Below the tax Higher Rate Threshold (£50,270 for 2024/25 as long as total income doesn’t exceed £100,000) – basic rate tax only (20%) but employees and employers NI would be payable. For many directors, the optimal salary level is £12,570 (within the personal allowance), while ensuring employer NI contributions are considered. If you have children you may also wish to consider the tax-free childcare rules which are based on your income level. Taking Dividends Tax-Efficiently After taking a salary, dividends can be used to extract additional income from the business in a tax-efficient way. Key points to consider: Tax-Free Dividend Allowance – the first £500 of dividends (2024/25) is tax-free. Dividend Tax Rates - basic rate: 8.75% (for income up to £50,270), higher rate: 33.75% (for income between £50,270 - £125,140), additional rate: 39.35% (for income above £125,140) Ensure Sufficient Retained Profits – dividends must be paid from post-tax profits, so check company finances before issuing dividends. Year-End Planning Considerations With the tax year ending soon, consider these steps: Use Your Tax-Free Allowances – ensure you use the full personal allowance (£12,570) and dividend allowance (£500) where possible before they reset; they can’t be carried over. Balance Salary & Dividends – ensure you extract income in the most tax-efficient way, keeping personal and business taxes low. Consider Pension Contributions – employer pension contributions are a tax-efficient way to extract profits from the business. Next week’s blog will be about pension contributions so watch this space. Plan Ahead for 2025/26 We’ll be posting an updated blog next month looking at planning for the 2025/26 tax year. The employers NI threshold is changing from 6 April 2025. Take Action Before 5 April! Now is the time to review your strategy to ensure you maximise tax efficiency before the end of the tax year. If you need tailored advice on the best approach for your business, book a call with us today.
If you sell on platforms like eBay, Etsy, Vinted, or Amazon, you may have heard that HMRC is increasing its scrutiny of online sellers. This has led to some confusion, with many wondering if the tax rules have changed. The rules around declaring income haven’t changed—but HMRC is now receiving more data than ever from these platforms. What Information Is Shared? Online selling platforms must report seller information to HMRC under new international rules designed to improve tax transparency. These platforms will share details about: Your total sales and transactions How many items you’ve sold The bank account linked to your payouts Your name, address, and tax identification details If you sell regularly or earn significant amounts, HMRC will be able to see this and may contact you if they believe you should be paying tax. Have the Tax Rules Changed? No—the tax rules haven’t changed. The UK has always required individuals to declare income from self-employment or business activities. What has changed is HMRC’s access to data, making it easier for them to identify sellers who may not be complying with the rules. If you’re selling items occasionally, such as clearing out unwanted clothes or second-hand goods, you won’t need to pay tax. But if you’re running a business—buying items to resell, making products for sale, or selling regularly with the intent to make a profit—you may need to declare your income. There is a £1,000 trading allowance which means you can earn up to £1,000 of gross income (before deducting any costs) tax-free each year. If you earn more than that, you’ll need to declare and pay tax on the profits. What Should You Do If You Think You Owe Tax? If you realise that your online sales meet the criteria for taxable income, the best thing to do is act now. Register for Self-Assessment Keep accurate records – Track all your sales, expenses, and profits. Most platforms provide sales reports, but it’s a good idea to keep your own records too. Submit your tax return on time – The deadline for online submissions is 31 January following the end of the tax year. Late returns or unpaid tax can result in penalties. Need Help With Your Taxes? If you’re unsure whether your sales count as trading or need help with your tax return, CJL Accountancy is here to help. We specialise in supporting small businesses, self-employed individuals, and online sellers. Get in touch today for expert advice on staying compliant and keeping your tax affairs in order!
Whether your tax return has been filed already or not, if you have a tax liability for the 2023/24 tax year, the payment is due by 31 January 2025. If you pay payments on account, your first payment for the 2024/25 tax year will also be due by 31 January 2025. This is relevant if your 2023/24 tax liability was over £1,000 and you don’t have 80% of your tax paid via payroll. What Happens if You Miss the Deadline? If you miss the 31 January 2025 deadline, it can be costly. HMRC will charge interest (the current rate is 7.25%) until the liability is paid. If you have any tax still owing after 30 days (2 March 2025) then there is also a penalty charged at 5% of the tax due. Another 5% penalty is charged after 6 months and another 5% after 12 months for any tax still owing. What Should I Do? We would recommend logging into your self-assessment account to check whether your tax return is filed and if you owe any tax. If you don’t have a self-assessment account set up yet, you can create one on the HMRC website. If you have an accountant, they’re likely to have contacted you if you have a payment to make but you can also check with them. What If I Can’t Afford My Tax? If you have tax to pay but can’t afford it then it’s worth setting up a Time to pay agreement with HMRC as soon as possible, ideally before the payment deadline. You can do this by searching HMRC time to pay on the internet (make sure you’re on the official gov.uk website). This suspends the late payment penalties as long as you keep up with the agreed payments. Interest will still be payable. Why Work with CJL Accountancy? Tax can be complex, especially if you’re juggling multiple income streams or navigating HMRC’s ever-changing rules. At CJL Accountancy, we specialise in helping influencers, landlords, and small businesses maximise their tax efficiency. We encourage early tax return preparation and in year calculations where relevant so that you have time to plan for your tax payments. We will advise on the costs you can claim to ensure that you don’t pay more tax than necessary. Act Now: Don’t Wait Until the Last Minute With less than two weeks to go, make sure you know if you have a tax payment to make. Let CJL Accountancy take the stress out of your tax return. We’re not guaranteeing 2023/24 tax returns at this late stage but contact us if you’d like help with your 2024/25 tax return. Getting an accountant in place early will mean there’s plenty of planning time to maximise allowances, reduce your tax and plan for payments.
Do you need a business bank account for this? Even if it’s not legally required, having a separate account for your business can make a huge difference. Let’s break it down. When is a business bank account legally required? If you operate as a limited company, you are legally required to have a business bank account. This is because a limited company is a separate legal entity, and its finances must be kept distinct from your personal funds. If company funds are paid into a personal account then you’ve already withdrawn funds from the company which has tax implications. However, if you’re a sole trader or a landlord managing property income (not through a limited company), there’s no legal obligation to have a business bank account. That said, there are several reasons why it’s highly recommended. The benefits of a business bank account Clearer financial records - keeping your business and personal finances separate simplifies your bookkeeping. This makes it much easier to track income and expenses, which is essential for accurate tax returns. Professionalism - a business bank account gives you a more professional image. Clients, tenants, or suppliers may feel more confident when they see payments or invoices associated with a business account rather than a personal one. Better financial control - with a dedicated account, you can monitor your business cash flow at a glance. This helps you budget, identify trends, and avoid overspending. Tax efficiency - having separate accounts simplifies the process of claiming business expenses. With everything in one place, you’ll avoid missing deductions and reduce the risk of HMRC queries. Access to business banking perks - many business bank accounts offer features like invoicing tools, integrations with accounting software, and tailored business loans or credit options. Making Tax Digital (MTD) With MTD being introduced from April 2026 for landlords and sole traders, having a separate business bank account will make it much easier to record your transactions digitally and file the quarterly returns with HMRC. If you're using software then you can usually link your account so the transactions are pulled in automatically or if you're using spreadsheets then you could download the transactions from that account. You can read more about MTD in our previous blog here . How many business bank accounts should I have? For limited companies, sole traders and landlords it may also be worth having multiple business bank accounts for two reasons: Funds protection – the Financial Services Compensation Scheme that covers you when banks fail also covers business accounts. You could open bank accounts with more than one financial institution to spread your funds. If one bank is having any technical issues it also reduces the impact on you. Tax savings – it’s useful to have a second account to save for tax liabilities. You could move an amount each time you receive rent or revenue to cover your self-assessment or corporation tax liability at the end of the year, or VAT liabilities at the end of the quarter. Conclusion While it’s not mandatory for sole traders or individual landlords, having a separate account is a good idea for most. The benefits in terms of organisation, professionalism, and tax efficiency far outweigh the small costs or effort involved in setting one up.
Penalties for late filing If filed after 31 January - £100 fixed penalty Missing the deadline immediately triggers a £100 fine, regardless of whether you owe tax or not. If filed after 30 April - £10 daily penalties If your tax return is still outstanding after three months, HMRC may charge penalties of £10 per day (up to £900). If filed after 31 July - £300 minimum additional penalty If your tax return is still outstanding after six months HMRC can charge the greater of: 5% of the tax due, or An additional fixed penalty of £300. If filed after the next 31 January - £300 minimum additional penalty If your tax return is still outstanding after twelve months, HMRC can charge the greater of: Another 5% of the tax due, or An additional fixed penalty of £300. If HMRC assess that you’re deliberately withholding information, charges can increase up to 100% of the tax due. How to avoid or minimise penalties Check your online HMRC account. Even if you don't think you need to file a tax return, if HMRC have issued one, you'll need to file a return or contact HMRC to cancel it. Start collating your tax information as early as possible so you can be organised and meet the 31 January deadline. File your return as soon as possible. Even if the deadline has passed, submitting your tax return quickly can prevent further penalties from accumulating. If you’re waiting for some information, consider filing a provisional return before the deadline. You can appeal a penalty if you have a reasonable excuse for filing late, such as serious illness, bereavement, or technical issues with HMRC’s systems. Make sure to provide evidence to support your claim. Conclusion Missing the self-assessment deadline can result in costly penalties, but acting quickly can help minimise the impact. Need help filing your tax return? As experienced accountants, we’re here to make the process simple and stress-free. Contact us today to get started. We'll be closing our doors for the 2023/24 tax year on 16 December 2024 so act now!
The good news is that HMRC provides a tax exemption for annual staff events like Christmas parties. To qualify as tax-free: All employees must be invited Total cost must not exceed £150 per employee (including VAT), per tax year The event must be held annually, such as a Christmas or summer party, rather than one-off occasions The exemption applies whether the company is a small startup or a larger limited company, as long as these conditions are met. However, if you’re self-employed then this exemption doesn’t apply, even if you have paid employees. Guests You can invite guests to your Christmas party, but be careful not to invite clients, suppliers or referrers as it may end up as disallowable entertaining. It’s probably best for the invitees to be your employees and a plus one. Don’t get caught out by the £150 per head limit Firstly, it’s an exemption, not an allowance. This means that if your party is £151 per head, it doesn’t qualify. You can’t claim £150 as exempt and £1 as taxable. It’s also an annual limit per tax year so if you have multiple parties, they must not exceed £150 per head in total. The cost per head is calculated as follows: Add up the total event costs - this includes venue hire, food, drinks, transport, and any other associated expenses, plus VAT. Divide by the number of attendees - include all guests in the calculation, such as employees and their partners if invited. VAT treatment If your company is VAT registered, you should be able to reclaim VAT on the Christmas party costs. However, if the party is only for directors as there are no other employees, the VAT will not be allowable. Where guests are invited, the costs must be apportioned so that only the employee element is claimed. Exceeding the limit If the cost per head exceeds £150, the entire amount becomes a taxable benefit for employees and the company will need to pay additional national insurance contributions. Alternatively, the company can settle the tax liability on behalf of employees using a PAYE Settlement Agreement (PSA). Christmas gifts If you’re also planning to give gifts to your employees, consider the trivial benefits exemption: Gifts must cost no more than £50 per employee. They cannot be cash or cash vouchers. Gifts must not be a contractual entitlement or a reward for performance. You can read more about this in our previous blog here . Conclusion Christmas parties are a fantastic way to boost morale and celebrate your team’s hard work. By understanding the tax rules and keeping within the limits, you can ensure your festive celebrations are both enjoyable and tax efficient. If you need further advice on organising tax-efficient staff events or understanding employer obligations, feel free to reach out. We’re here to help your business make the most of the festive season!
Our previous blog looked at working from home expenses for the self-employed which you can read here . For limited companies it’s a little more complicated as the company is a separate legal entity. There are three options for claiming: The fixed rate allowance As a director, you can claim £6 per week from the company for working from home costs which is an allowable expense for the company against corporation tax and it is not chargeable to income tax for you. However, you can only claim this if the company does not have a business premises. Actual costs You can claim a proportion of your costs including gas, electricity, water, telephone and internet. You’ll need to use a reasonable method of dividing your costs, for example by looking at the number of rooms you use for your business and the time that you spend working from home. Unlike for the self-employed, you cannot claim a proportion of rent, mortgage interest or council tax as these are considered to be fixed costs and don’t increase as a result of working from home. It’s important to keep records of the costs and the method used to divide the costs in case HMRC asked to see it. Rental agreement The other option is that you can charge your company rent to use part of your home. You would need to put a rental agreement in place that is signed by both parties and is at a commercial rate. The company then pays you rent at the agreed rate and this is an allowable expense in calculating your company profits. The rent that your company pays is rental income for you personally and needs to be declared on your personal self-assessment tax return. Ideally the income will be eliminated by the actual costs incurred and therefore no tax will be payable but it will still need to be declared. Other points to consider if you’re looking at the rental agreement option: You may need to check any rental agreements or mortgages to ensure that you’re allowed to run your business from home. You should check if there is any effect on your home insurance policy. There may be capital gains tax payable if you use part of your home solely for business purposes. You should check that your home would not become subject to business rates. Important points to remember for claiming working from home expenses Keep accurate records - document all expenses, including how you calculated business use. Only claim for business use - HMRC is strict about claiming only the portion of costs genuinely associated with business activities. Review your claims annually - as your working pattern and expenses may change, it’s worth reviewing your home working claims each year to ensure they are still accurate. Need help? Get in touch Navigating home working expenses can be complicated, especially with changing HMRC rules. We can help you ensure you’re claiming the maximum allowable expenses.
There are two options for claiming: Proportion of actual costs You can claim the business proportion of your costs for things like: Gas and electricity Water Council tax Mortgage interest (not the capital repayment) or rent Internet and telephone You’ll need to use a reasonable method of dividing your costs, for example by looking at the number of rooms you use for your business and the time that you spend working from home. It’s important to keep records of the costs and the method used to divide the costs in case HMRC asked to see it. Also note that if you have rooms that you use solely for your business, this may effect your eligibility for private residence relief where you own your home so it’s a good idea to also have personal use of the rooms if possible. Simplified expenses You can avoid the complex calculations above by using simplified expenses which is a flat rate based on the number of hours you work from home each month. You do not need to prove any costs to HMRC as they have set the rates, although you may be asked to justify the number of hours if HMRC believe them to be inflated. The current rates are as follows: 25 to 50 hours £10 per month 51 to 100 hours £18 per month 101+ hours £26 per month Each month should be calculated separately so if you take a holiday one month, you may need to claim a lower amount that month. Conclusion Make sure that you’re making a claim for your home working as it will reduce your tax bill. Contact us if you’d like any help with your self assessment tax return.
Income Tax, Personal Allowances and Employee National Insurance The Chancellor has opted to freeze income tax thresholds again, extending the freeze on personal allowances and higher-rate tax thresholds until 2028. This move means that, as inflation pushes wages up, more people may find themselves in higher tax brackets over time. There is no change to employee national insurance rates. National Minimum Wage (NMW) From April 2025, NMW will be increasing to £12.21 per hour for eligible employees, with the rates for 18-20 year olds increasing to £10.00 per hour and under 18s and apprentices to £7.55 per hour. Employers must make sure they are meeting these minimum rates. Employer National Insurance Contributions From April 2025, the main rate of employer national insurance (NI) will increase from 13.8% to 15% and the threshold at which contributions begin will reduce from £9,100 to £5,000 per year. For an employee earning more than £9,100, this is an increase in NI of at least £615 per year. The impact of this on small businesses has been reduced with an increase in the employment allowance from £5,000 to £10,500 per year. The employment allowance is a reduction in employer NI contributions. The employment allowance is currently only available to employers with less than £100,000 of employer NI contributions in the previous tax year but this restriction will be removed from April 2025. However, those companies with only one employee paid above the NI threshold where that employee is a director are not eligible for the employment allowance so this will affect many small consultancy businesses. Corporation Tax The government has published a Corporate Tax Roadmap that includes a commitment to cap the corporation tax main rate at 25%, maintain the small profits rate and marginal relief, maintain full expensing and annual investment allowance for capital purchases, and R&D relief rates. The Roadmap also shows that there is an intention to simplify tax administration for companies. Capital Gains Tax (CGT) Changes to CGT were a major talking point prior to this year’s budget with the rates increasing from 30 October 2024 to 18% (previously 10%) in the basic rate band and 24% (previously 20%) in the higher/additional rate bands. This aligns the rates for other assets with the rates already in place for disposals of residential property. Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) will increase from 10% to 14% from 6 April 2025 and to 18% from 6 April 2026. The lifetime limit for IR has reduced to £1m which is in line with BADR. Stamp Duty Land Tax (SDLT) The higher rate charged on purchases of additional dwellings has increased to 5% (previously 3%) from 31 October 2024. For companies purchasing dwellings costing more than £500,000, the rate has also increased from 15% to 17%. The SDLT thresholds were already due to reduce from 1 April 2025 because the current thresholds were a temporary measure from September 2022 to 31 March 2025. Inheritance Tax (IHT) There are changes to agricultural property relief and business property relief from 6 April 2026 whereby 100% relief is only available for the first £1m of assets, reducing to 50% thereafter. Unused pension funds will be brought into the value of estates from 6 April 2027. The nil rate band will remain at £325,000 and residence nil rate band at £125,000 until April 2030. Non-UK Domiciled Individuals As previously announced, the remittance basis of taxation (where non-UK domiciled individuals could elect to pay tax only on their UK sourced income/gains and any remittances made to the UK) will be removed from 6 April 2025. Other Points Making Tax Digital (MTD) for Income Tax will be extended to the self-employed and landlords with turnover of more than £20,000, although no date has been given for this. You can read more about MTD in our previous blog . ISA subscription limits are frozen until 2030. The interest rate for unpaid tax will increase to 9% (currently 7.5%) from April 2025. There will be a focus on non-compliance with additional compliance staff being recruited at HMRC and a clear message about reducing the tax gap. We will likely see an increase in ‘one to many’ letters which HMRC send to individuals to prompt them to consider whether their tax affairs are up to date. Conclusion With a host of tax changes impacting both individuals and businesses, planning ahead is crucial. Whether you’re affected by the income tax freezes, NI rises or CGT increases, taking steps now can help you make the most of available reliefs and avoid potential pitfalls. If you’d like tailored advice on navigating the Autumn Budget 2024, don’t hesitate to reach out. We’re here to help you make the most of the new regulations, ensuring you’re well-prepared for the financial year ahead.
Legal Structure Self-Employed (Sole Trader)
As a sole trader, you are the business; there is no legal distinction between you and your business. You are personally responsible for any debts, meaning that your personal assets are at risk if the business fails. Limited Company A limited company is a separate legal entity from its owner(s). This offers limited liability protection, meaning that in the event of financial trouble, your personal assets are safeguarded, and you are only liable for the amount you invest in the company. The company itself is responsible for its own debts and obligations. This also means that you cannot use the company as your personal bank account as it’s legally separate and so withdrawing money has tax consequences. Taxation One of the most important differences between being self-employed and running a limited company is how you are taxed. Self-Employed Tax
As a sole trader, you pay income tax and national insurance through Self Assessment on your business profits. You are also required to pay Class 4 National Insurance Contributions (NICs). The tax rates are currently 0% for your personal allowance, 20% in the basic rate band, 40% in the higher rate band and 45% in the additional rate band. National insurance is 0% on the initial profits, 6% on the next section and 2% on the higher amount. Limited Company Tax
A limited company is subject to corporation tax on its profits. The current rate for corporation tax in the UK is 25% for profits over £250,000, and a marginal rate for profits between £50,000 and £250,000. For profits below £50,000, the rate is 19%. These thresholds may be reduced if you have shares in other companies.
You’ll be a director and shareholder of your limited company and can take income through a combination of salary and dividends. The salary is taxed on you at the income tax rates above and employee/employer national insurance will also be due, but there is corporation tax relief in the company. Dividends are taxed at lower tax rates but are taken from the net profits of the company so there is no tax relief. The fact that you can choose how/when to extract profits from your limited company is often the main reason people opt for running their business via a limited company. Expenses and Tax Deductions Self-Employed Sole traders can deduct allowable business expenses from their profits before calculating tax. These expenses must be "wholly and exclusively" for business purposes. See our previous blog post here for some examples. Limited Companies Limited companies can also deduct business expenses from their profits before calculating tax. The company can contribute to the director’s pension without triggering a personal tax liability (subject to the annual allowance) and also provide some small gifts and annual parties for employees (including the director). See our previous blog post here about trivial benefits. If any personal costs are covered by the company then there will be national insurance due for the company and personal tax due for the director so this should be discussed with your accountant. VAT Whether you're self-employed or a limited company, you will still need to adhere to the same VAT rules and register for VAT if you meet the threshold. Hiring Employees You can hire employees whether you're self-employed or a limited company. You'll need to set up a payroll scheme and follow the payroll processing procedures, as well as adhering to employment laws. Administrative Responsibilities Self-Employed The administrative burden for sole traders is relatively light. Sole traders must: Register with HMRC for Self Assessment. Submit an annual Self Assessment tax return. Maintain basic accounting records to show income and expenses. Making Tax Digital is coming which means that you may have to send quarterly submissions to HMRC, see our blog here about this. Limited Companies Running a limited company comes with more administrative responsibilities, including: Registering the company with Companies House. Filing annual accounts and a confirmation statement with Companies House. Submitting a Corporation Tax return to HMRC. Maintaining more detailed accounting records, as your accounts must follow certain legal requirements. It is advisable to have an accountant whether you are self-employed or running a limited company but particularly with a limited company as you must adhere to company legislation and your accounts must be prepared under certain standards. Perception and Credibility For some businesses, operating as a limited company can enhance credibility and trust with potential customers and suppliers. The "Limited" after a company name suggests that the business is more established and professionally managed. In certain industries, clients may prefer to work with a limited company due to the protection and formality it offers. Sole traders may find that certain larger companies or suppliers are reluctant to enter into contracts with them due to the lack of limited liability. Flexibility and Growth Potential Self-Employed Operating as a sole trader is simple and flexible, which can be advantageous for small businesses or freelancers with modest earnings. However, as your business grows, the lack of limited liability and tax advantages may become restrictive. Limited Companies If you plan to grow your business, hire employees, or seek external investment, a limited company is often the better structure. It provides scalability, greater flexibility in terms of ownership, and can make it easier to raise capital. However, it also brings greater complexity. Conclusion: Which Is Right for You? Choosing between self-employment and setting up a limited company depends on a number of factors, including your business size, growth aspirations, and personal circumstances. Generally: Self-Employed status is simpler, requires less admin, and is often suitable for small, low-risk businesses or freelancers. Limited Company status offers more tax planning opportunities, reduced personal financial risk, and is ideal for businesses aiming to grow and scale. You can always begin running your business as a sole trader and move to a limited company later on as you grow. Before making a decision, it's advisable to consult with an accountant to assess your individual situation and ensure you're making the most tax-efficient choice for your business. CJL Accountancy can help with looking at your personal circumstances so that you can make an informed decision.
CJL Accountancy Limited
Director - Chrissy Leach FCA MAAT AATQB
Registered office - 20-22 Wenlock Road, London, N1 7GU
Registered in England and Wales
Company number 11137729