Limited Company Accountants

As of April 2023, Corporation Tax is no longer a flat rate:

• Companies with profits up to £50,000 pay 19%

• Profits between £50,001 and £250,000 are taxed at a tapered rate

• Profits over £250,000 are taxed at the main rate of 25%

Limited companies do not pay Income Tax or National Insurance on profits—but directors may owe personal tax on salary or dividends taken from the business.

Dividend tax rates for the 2024/25 tax year are:

• 8.75% for basic rate taxpayers

• 33.75% for higher rate taxpayers

• 39.35% for additional rate taxpayers

The dividend allowance has been reduced to £500. This means you now pay tax on dividend income over £500, unless covered by other allowances.

A Limited Company has a separate legal entity from its shareholders and directors, whereas the business and personal affairs of someone who is self-employed people is treated ‘as one’ for tax purposes.

It costs £12 to register online through Companies House, and the process usually takes 24 hours. You’ll need to provide:

• A company name

• A UK registered address

• Details of at least one director and shareholder

• Three pieces of personal information (e.g. date of birth, passport number, NI number)

Fusion can handle the entire setup for you, ensuring it’s structured properly from the start.

Instructions on how to register your company can be found on HMRC’s website.

For many businesses, a limited company offers:

• Lower personal tax through salary + dividends

• Limited liability protection

• Increased credibility with clients and lenders

However, Corporation Tax is now up to 25% depending on profits, and limited companies come with more admin. If you’re earning consistently and want tax efficiency, it may be worth switching.
Speak to an accountant for personalised advice.

Companies House and HMRC take late filings seriously. Even a single missed deadline can lead to:

• Automatic penalties (starting from £150 and rising quickly)

• Interest charges on unpaid tax

• Reputational harm, which may affect funding or credit

• Director liability if errors are found in late-submitted accounts

Fusion tracks all your key dates and handles submissions well in advance—so you never have to worry about fines or last-minute scrambles.

It’s not a legal requirement—but is it the right move?

Managing your own limited company accounts means taking full responsibility for HMRC and Companies House compliance. That includes filing annual accounts, submitting your Corporation Tax return, registering for and managing VAT (if applicable), and running payroll if you pay yourself a salary.

While some directors choose the DIY route, working with an experienced accountant can help you:

• Avoid missed deadlines and costly penalties

• Navigate changing tax laws with confidence

• Save valuable time using efficient, automated systems

• Maximise your income with strategic tax planning

Going it alone is possible—but without expert support, it’s easy to miss out on legitimate deductions or fall behind on filings, which could cost you more in the long run.

Fusion Accountants offers dedicated accountants for limited company owners who want proactive advice, accurate filings, and responsive support.

Get in contact with us to learn more.