Expert accountancy and bookkeeping services for small Limited Companies

Many small limited companies are family businesses, even if only one person originally set the company up. Your spouse, partner or children may genuinely help with administration, social media, bookkeeping, answering calls, packing orders or other work. If they are doing real work for the business, the company can potentially pay them. But the amount paid must be commercially reasonable and the correct rules need to be followed. Paying your spouse or partner If your spouse or

Limited company directors often pay business costs personally and then reclaim them from the company. That is perfectly normal. But problems arise when business expenses and personal expenses become mixed together. A train ticket to visit a client is very different from a new suit for meetings or a personal hotel stay. The important thing is to understand what qualifies as a genuine director’s expense, what does not, and what to do if the company has accidentally paid somethi

Many limited company owners are familiar with the usual approach of taking a relatively small salary and the rest as dividends. That can work well. But it is not always the most tax-efficient option. For some profitable companies, paying directors a higher salary can actually leave more money overall between the directors and the company. This can be particularly useful where the owners want to grow the business rather than withdraw every available pound personally. Why would

Starting a limited company often costs money before the first customer arrives. You might pay for insurance, advertising, software, professional fees, equipment or premises while getting everything ready. A common question is: Can the company still claim these costs if it has not started trading yet? In many cases, yes. But there is an important difference between: pre-trading expenses – costs incurred by the company after incorporation but before trading starts; and pre-inco

Many limited company owners use a mixture of salary and dividends to take money from their company. But there is an important point that is sometimes missed: The right salary and dividend mix depends on all of your income — not just what you take from your company. If you also have employment income, rental income, pension income or self-employed profits, the tax position can look very different. For 2026/27, income is broadly taxed in this order: Non-savings income – includi

One of the advantages of running a limited company is that you often have some control over how and when you take money out of the business. That creates opportunities for tax planning. But saving tax is not simply about taking everything as dividends or choosing the lowest salary possible. Good planning looks at the company and the director together. Here are some of the main areas limited company owners should consider. 1. Get the salary and dividend mix right Many company

It is common for limited company owners to lend money to their company. You may have used personal savings to fund start-up costs, purchase equipment, support cash flow or provide the deposit for an investment. The company can repay the money you originally lent it without that repayment being treated as income. But what if you also want the company to pay you interest? That can be possible, and the interest can be tax deductible for the company. However, there are important

If your limited company is VAT registered, one of the most common questions is: “Do I need a VAT invoice before I can reclaim the VAT?” In most cases, the safest answer is yes. A valid VAT invoice is the main evidence that VAT was properly charged and that your company is entitled to reclaim it. But there are some important exceptions, particularly for smaller purchases and situations where the correct invoice cannot be obtained. What should a full VAT invoice contain? For la

Travel is one of the most common areas of confusion for limited company directors. Can your company pay for journeys to clients? What about travelling from home? Hotels? Meals? Mileage? The basic rule is: Business travel can usually be paid or reimbursed by your company tax-free. Ordinary commuting cannot. The important part is understanding the difference. Directors are treated as employees For travel expense purposes, company directors are generally treated in the same way

Many limited company directors take money in and out of their company during the year. This may include salary, dividends, business expenses, personal payments, repayments, or money borrowed from the company. If these amounts are not recorded correctly, they can create problems in the Director’s Loan Account. For small owner-managed companies, this is an area that needs careful attention. What is a Director’s Loan Account? A Director’s Loan Account records money moving betwee