Common Mistakes to Avoid When Setting Up a UK Limited Company

Are you considering setting up a UK limited company? It's crucial to navigate the process smoothly to avoid potential pitfalls. In this video, we'll discuss common mistakes to steer clear of, along with essential key dates and tax forms you need to know.
📅 Key Dates:
Incorporation Date: The date your company is officially registered with Companies House.
Annual Return Date: The deadline for filing your company's annual return, typically within 28 days after the anniversary of incorporation.
Corporation Tax Due Date: The deadline for paying corporation tax, usually nine months and one day after the end of your company's accounting period.
📝 Tax Forms:
CT600: The form used to report your company's taxable profits and calculate corporation tax due.
Form 10: The application form for registering a company with Companies House.
Form CT41G: The form to inform HMRC that your company has started trading.
💼 Examples:
Not Choosing the Right Business Structure: Selecting the wrong business structure can have significant implications on taxes and liability. We'll explore the best fit for your venture.
Neglecting Annual Compliance: Failure to meet annual return deadlines or submit required documents can result in penalties. We'll guide you through staying compliant.
#UKLimitedCompany #BusinessSetup #TaxCompliance #CompanyFormation #Entrepreneurship
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[@Simon-Misiewicz-US-UK-Taxes]

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

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[@user-ms3cf3hc8i]

If I create a limited company with Ord A and Ord B shares at incorporation and adopted model articles, do I need to alter the articles of association to allow for differing dividend payments?

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

Typically, model particles are not very good at putting in policies for dividend payouts with different share classes. However, the fact that you clearly have different share classes does allow you from legal point of view to differentiate the dividends that you pay out.

[@syedaliahmedabidi4268]

Need Help! If application is reject for some reason the amount is refundable or not? Cause i’ve received email which mention the amount is automatically refund with in 24 hour it may takes upto 4 days please clearify this issue.

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

You are best to call them on [phone]

[@paschaln9811]

Great video. My question is - Please how can I add a director (my spouse) as a director to my limited company? My spouse is currently a company secretary but I now want to make her a director to avoid me being a sole director. We are both equal shareholders.

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

Fill in this form and away you go. Best of luck with the business: www.gov.uk/government/publications/appoint-a-director-ap01

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

You might also want to read this www.companylawclub.co.uk/minutes-of-members-and-directors-decisions

[@paschaln9811]

@@Simon-Misiewicz-US-UK-Taxes Many thanks - Much appreciated 👍

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

You are welcome 🙏

[@desidesigning]

Why is the system so complicated and counterintuitive?

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

To be honest setting up a limited company needs to be complex given the variables that need to exist to meet each individual’s needs. Get an expert to help us always my suggestion

[@elzworl6588]

Thank you for uploading this video. However, I do have a question . I had formed a LLP with a friend that was a disaster. I’m now contemplating to now form a ltd instead where I’m the only one (less arguments and I know I’ll meet my deadlines on time) this leads to me what you said - it’s better not to be a sole director to at-least add a family member should any thing happen. Now if I add my mother as a shareholder would she then still have to be active within the business or do self assessment?

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

Having your mother as a shareholder could be a good idea for tax purposes. You could pay her money and if she earns less than you would pay less tax than you taking the money out of the company and giving it to her. She could not take an active role in the business if she is just a shareholder because she would also need to be big director for Banks and other legal matters

[@fifijamaicankitchen]

I am an only child, single and have no children. My mum has passed away and my dad lives in the US. Therefore I do not have anyone to add as a Director or Shareholder if I were to create a limited company. Am I better off being a Sole Trader? What is the best way forward in my position?

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

Speak to a good accountant to get advice on what tax structure to use 👍

[@serenedives]

I am srilankan.i have pvt ltd in srilanka.but im doing my own single director. I want to have a legal entity in uk. Wat is the best sole or pvt ltd

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

The answer to this question very much depends on your situation. I would certainly suggest that a tax consultation to discuss your specific situation will help identify the correct tax structure

[@esmob4140]

If someone creates a new UK LTD company, and eventually they don't use it for trading for any reason, how easy is it to close the business?

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

If you do a Google search and look for DS0 one form, this allows you to close the business with a £10 administration charge

[@ahmadsaleem8977]

Could You please Give a bit more Information about to close a company I just open a company and Bank Card as well but don’t use it for any business or trading after knowing you can’t do business on Student visa So now i want to close company and Bank account could you please help me 👏 and its will be affect on my visa if i will be apply again for study or work visa in Uk

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

@ahmadsaleem8977 Please book some time with an accountant to go through the best options for you. Please do not rely upon KZbin advice for your specific case as mistakes can be easily made

[@kingcarper6511]

Can I put my young children down as share holders and pay them dividends or is there a age limit thanks

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

Great question Paying dividends to minors would be taxable in the hands of the parent

[@kingcarper6511]

@Simon-Misiewicz-US-UK-Taxes but if was yo put my partner then it would not be . ? Thanks