Start Up Limited Company

This is a useful help sheet when you are first setting up a Limited Company, for knowing the basics of what to expect.

Once you’re set on proceeding with a Limited Company set up you’ll need to:

Choose a Company Name – Using the Companies House Name Availability Checker
Have your photo ID & proof of address (dated within 3 months), ready for the accountant and bank
Once you’ve incorporated, you’ll need to set up a company bank account. If you’re not sure who to go with, we can give you some support regarding your options.

How do you get paid?

You’ll need to raise sales invoices for your services and/or goods sold. We recommend using a software such as Xero.
Receive money for your sales into the company bank account
Set aside money for your tax – Brisan can support you with your tax planning
You can pay yourself a salary, dividends and reimburse any expenses that you’ve paid personally

What expenses can you claim?

Anything that is considered ‘wholly and exclusively’ for the purpose of your work and business – such as work related travel, subsistence (such as lunch, coffees), professional costs, subscriptions, uniform, advertising etc.
Contributions into your pension can be made tax efficiently
Home office costs for any business use

What tax will you pay?

Your company will pay corporation tax on its profits, you can find rates of tax here
Your personal earnings are taxed through self-assessment
You can earn £12,570 (2025-26 tax year) as an individual, tax free
The income tax rates and personal allowances can be found here

An Overview

- A company in a separate a legal entity to an individual.
- Shareholders’ personal liability is limited to the amount they invest in shares; personal assets are usually separate to a Limited company.
- A Limited company has ongoing compliance obligations, such as filing annual accounts, tax returns and confirmation statements.