When 2 or more people go into business together it is a Partnership. There should be an agreement on how to split profits and who does what (essential when a partnership splits up). Simply advise HMRC and it is set up. It is easy to join a Partnership, and to leave,...
When a Limited Company makes profit it can pay the profit out to its owners by Dividends – which are paid out in proportion to the shares held by the shareholders. Someone with 100 shares will be paid 100 times more dividends than someone with 1 share....
There are many reasons for not choosing a Partnership in your position, for instance: They are less tax efficient than Limited Companies Partners must pay Class 4 National Insurance All Partners are responsible for all debts Partnerships can result in disagreements if...
Yes – assuming they are adults, and provided the salaries, and any other benefits you pay them, are commercially justifiable. These benefits could include: A company car Medical insurance Making payments into a registered pension scheme However, HMRC may...
As well as obvious things, such as: the physical, financial and data security, you should ensure that you have good IT and internet security; plus the necessary (including Cyber) insurance. It also makes sense to have a solid Business Continuity Plan. The structure...
If your Company has paid off its creditors and has less than £25,000 cash in the business, you could save liquidator fees of £3,000 or so by: By applying to Companies House, you can elect for it to be dissolved using form DS01; Paying out the funds as a Final...
