Case studies / Annual accounts and corporation tax

Helping a new business choose the right structure

A Totnes based craft business needed advice on whether to trade as a sole trader or set up a limited company and support through their first year of accounts.

A Totnes maker of home goods approached us while still trading as a sole trader, unsure whether incorporating as a limited company made sense for her business. We talked through her turnover, plans for growth and personal circumstances and set out the practical differences between the two structures in plain terms.

Together we decided a limited company suited her plans, so we handled the incorporation with Companies House, registered the new company for corporation tax and helped her open a business bank account. We also set out a simple bookkeeping routine she could manage herself between our quarterly check ins.

Her first year of trading as a limited company went smoothly, with accounts and a corporation tax return filed well ahead of the deadline. She now has a clearer sense of what she can draw from the business each month and plans to take on her first employee next year.

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★★★★★
They took over our bookkeeping when it had become a real headache and sorted it out within a couple of weeks. Our VAT returns are now the easiest part of the quarter, not the hardest.
Sarah M · Cafe owner, Teignmouth