dvantages and disadvantages of a UK Limited Company December 26, 2023

A UK Limited Company offers notable advantages like limited liability protection, which safeguards personal assets from business debts, and potential tax efficiencies, as profits are taxed at the corporation tax rate, which can be lower than personal income tax rates. However, it also brings disadvantages such as increased administrative burdens, including the need to file annual accounts and a Confirmation Statement with Companies House, and reduced financial privacy, as financial statements become public records. Additionally, navigating the complexities of corporation tax, dividend distribution, and VAT compliance can be challenging, often requiring professional accounting and tax advisory services.