4 Problems of A UK Limited Company You Need to Know

In this video, we delve into the less-discussed aspects of employing a UK limited company for business ventures. From tax intricacies to administrative burdens, we uncover the potential drawbacks that entrepreneurs may encounter along their journey. Understanding the negative side of operating through a UK limited company is crucial for informed decision-making. Join us as we navigate through key dates, essential tax forms, and real-life examples that shed light on this often overlooked facet of business ownership.
Key Dates: Stay informed about important deadlines such as tax filing dates and company reporting obligations to avoid penalties and maintain compliance.
Tax Forms: Gain insights into essential tax forms required for operating a UK limited company, including Corporation Tax returns (CT600), Annual Accounts, and VAT returns.
Examples: Explore real-life scenarios where the limitations and challenges of utilizing a UK limited company become apparent. Learn from case studies illustrating the complexities and potential pitfalls that entrepreneurs may encounter.
#UKLimitedCompany #TaxObligations #BusinessOwnership #Entrepreneurship #FinancialResponsibility
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[@over-engineered]

not sure I agree with the double taxation comment. wages you pay yourself are taken from company profits BEFORE company tax is calculated. But if you pay yourself above NI threshold and don’t claim the current exemption, you’ll be paying employers NI as well as employees NI, so that’s not great. Also there’s the horrid dividend tax they introduced, which is a tax on money you pay yourself as a dividend to avoid NI. such fun!

[@Simon-Misiewicz-US-UK-Taxes]

Isn’t that what double tax is? First corporation tax then income tax on dividends.

[@olivermatthams4260]

You don't pay corporation tax on the money given out as income. You'll just pay the income tax.

[@Simon-Misiewicz-US-UK-Taxes]

Dividends tax: You pay corporation tax on the profits made. You then pay income on the dividends you take out of the company as dividends. Hence, double taxation

[@lyhamroad4431]

Very insightful video! I set up my company with you but I had to use my own address at the beginning then your offices. Is there a way of removing the home address now that it’s moved to your office address as correspondence ? Thanks 🙏

[@Simon-Misiewicz-US-UK-Taxes]

There will be no way of removing previous addresses used on companies house as it is an official record, sadly!

[@lyhamroad4431]

Ah damn but thanks for answering anyway. I should have put your company name right at the beginning. Lesson learnt 🙂@@Simon-Misiewicz-US-UK-Taxes

[@Simon-Misiewicz-US-UK-Taxes]

@lyhamroad4431 we all learn from the things in the past. That’s the beauty of continuous improvement 🙏👏👌

[@patrickchan2503]

I do think public disclosure can be weird. Anyone can dig up your info on the internet.

[@Simon-Misiewicz-US-UK-Taxes]

I agree with you

[@PrincePawn]

I moved to the UK, and I find it very strange that the finances of private companies are also made public. I tried to Google why this law was created, but I don't find an answer. Now I'm asking, how such a law was passed??

[@Simon-Misiewicz-US-UK-Taxes]

It’s just the way that UK law works. I know that if I switch a switch a light comes on. I don’t need to know why. I just need to know it does it that way. You are not going to charge it

[@anna3046]

What is a Ted reports for residential properties you mentioned at 3:29?

[@Simon-Misiewicz-US-UK-Taxes]

ATED reports is to notify HMRC if you have purchased a residential building for personal use over £500,000

[@anna3046]

Thank you

[@Simon-Misiewicz-US-UK-Taxes]

@anna3046 you are very welcome 🙏

[@giuseppebonelli]

In your opinion is better a LTD in UK o Ireland for a non resident? The business who want to create is motion picture and distribution movie company.

[@Simon-Misiewicz-US-UK-Taxes]

This is a great question, but I’m not sure on the right person to answer it for you. I would always say that you should have a limited company based with most of the activity takes place.

[@rajp4812]

I am a buy to let landlord through limited company - How do treat the cost of intial purchase of domestic items( not replacement)? - Can be claimed as expenses or capital allowance for Ltd ? Many thanks in advance

[@Simon-Misiewicz-US-UK-Taxes]

Any new items will be capital in nature

[@rajp4812]

Thank you for your prompt reply as always. If capitalised the domestic item then can claim capital allowance ?

[@Simon-Misiewicz-US-UK-Taxes]

Only sometimes and it depends on the item and on the property type. single let properties do not benefit from capital allowances

[@memories-fh5fd]

can my children be included as directors/shareholders in a UK Ltd Company?

[@Simon-Misiewicz-US-UK-Taxes]

With anything this sophisticated, I would advise you get Tax advice from your accountant before you do anything

[@lalgonultas]

May I know what is mutual company and why my company looks mutual while i am sole %100 owner. How can I change this mistake? Thank you.

[@Simon-Misiewicz-US-UK-Taxes]

I would only usually see this if it is an insurance company. The set up needs to be checked

[@lalgonultas]

​​@@Simon-Misiewicz-US-UK-TaxesThank you for your reply Simon. Its a Travel agency 🤦🏻‍♀️ Can I make set up change online? If yes, what page? I cant find a way to email Companies House.

[@Simon-Misiewicz-US-UK-Taxes]

You can make the changes part of your confirmation statement

[@lalgonultas]

​@@Simon-Misiewicz-US-UK-TaxesI am on the Confirmation Statement page. Which information do I need to change here? Please forgive me for bothering you by my personal issue.

[@Simon-Misiewicz-US-UK-Taxes]

@lalgonultas you may be best to get some legal/tax advice before you do too much on your own 👍