What Is a Limited Company and How We Support You
Learn the key benefits, responsibilities, and tax obligations of running a limited company in the UK — and how STP Finance can help.
A limited company is a legal business structure registered with Companies House. It operates as a separate legal entity, meaning the company itself is responsible for its debts and obligations — not the individuals behind it.
Advantages of a Limited Company
- •Limited liability: Shareholders are only liable up to the value of their shares
- •Professional image: Enhances credibility with clients and suppliers
- •Tax efficiency: Corporation tax rates are often lower than personal income tax
- •Separate legal identity: The company can own assets, enter contracts, and continue operating even if directors change
- •Investment potential: Easier to raise capital through shares or external investors
Possible Drawbacks
- •More paperwork and reporting obligations than sole traders
- •Company accounts and director details are publicly available
- •Annual filings, bookkeeping, and payroll require ongoing attention
Taxes a Limited Company Must Pay
Tax Calculators
Use our calculators to estimate your tax obligations for the 2025/26 financial year. These tools are designed for UK-based limited company directors.
Corporation Tax Calculator
Estimate your UK Corporation Tax for the 2025/26 financial year based on your annual profit before tax.
Dividend Tax Calculator
Estimate your UK Dividend Tax for the 2025/26 financial year based on total dividends received.
Disclaimer
These calculators provide estimates based on current UK tax rules for the 2025/26 financial year. They assume a standard 12-month accounting period and that the company is not part of a group or associated with other companies. They do not account for other income, allowances, or tax planning strategies. STP Finance is not a chartered accountancy firm and cannot perform statutory audits or regulated investment services. We are regulated under UK Money Laundering Regulations and committed to compliant, transparent support.
Sources:
- • HMRC: Corporation Tax guidance – 2025
- • HMRC: Dividend Tax thresholds – 2025
- • GOV.UK: Limited company responsibilities – 2025
Reporting Obligations
- •Annual Accounts: Submitted to Companies House once per year
- •Confirmation Statement: Submitted to Companies House once per year
- •Corporation Tax Return: Submitted to HMRC once per year
- •PAYE Reports: Submitted monthly to HMRC
- •VAT Returns: Usually submitted quarterly to HMRC
How We Support You
STP Finance has years of experience helping small businesses and self-employed professionals navigate the complexities of limited company setup and compliance. We offer:
- ✓Clear guidance on tax and reporting obligations
- ✓Help with bookkeeping, payroll, and VAT
- ✓Support with Companies House filings and HMRC submissions
- ✓Transparent pricing and no hidden fees
Important Note
We are not chartered accountants, and therefore cannot perform statutory audits or offer regulated investment advice. However, we are regulated under UK Money Laundering Regulations and committed to delivering reliable, compliant support.
Sources:
- • GOV.UK: Running a limited company – 2025 update
- • HMRC: Corporation Tax guidance – 2025
- • Companies House: Filing requirements overview – 2025