Hadden Business Solutions

Frequently Asked Questions

We have compiled a list of questions we often get asked by our customers. Please note: Hadden Business Solutions is referred to as 'HBS' throughout these questions.

Q.   What is a Limited Company?

A.   A Limited Company is seen as an individual legal entity in its own right and must be run and operated within the 'Companies Act 2006'. The company's assets, liabilities and debts are therefore not treated as belonging to the company's shareholders and/or directors.

Q.   How do I set up my own Limited Comany?

A.   HBS can set up your Limited Company for you. All you need to do is complete our short "New Client Form" and return it to us. Your company could be incorporated within as little as 24 hours of us receiving your completed form.

Q.   What administration work is required in setting up a Limited Company?

A.   HBS can take care of most of this for you, however, inevitably there will be some paperwork you are required to sign, as you will be Director of the Limited Company. HBS will take care of as much of this as is possible, leaving you free of the often time consuming admin involved in setting up a Limited Company.

Q.   What advantages are there of trading through a Limited Company?

A.   There are various advantages to trading as a Limited Company, such as:

It can be a more tax efficient way to work than under PAYE
Limited Liability - as the company is seen as a separate entity in its own right, the personal assets and wealth of the officers of the company are protected if the company were to hit financial difficulty. They can only lose the value of their shareholding
You can give a share of the business to others
Limited Companies can allow you to "plan your tax" - money earned can be left in the Limited Company and taken as income in future years
Obtaining bank loans can be easier
Some companies will only deal with other Limited Companies

Q.   I need help setting up a Limited Company bank account.

A.   As soon as your company has been registered at Companies House by HBS the next stage is opening a bank account for the company. We can help you with this if you choose to use one of our two recommended banks. We will either arrange for Barclays to give you a call to arrange an appointment with your local Barclays Business Manager, or help you to complete the application forms if you choose to use Cater Allen Private Bank. Alternatively, all high street banks offer Limited Company facilities.

Q.   What is IR35?

A.   IR35 is the government's process to determine your employment status. In short, it is there to determine whether you are a genuine contractor or whether you should be employed and are avoiding paying PAYE on your full earnings.

Q.   I already have a Limited Company; can I move it to HBS?

A.   Yes, all you need to provide us with is the name of your current accountant (if you have one). We will do the rest! If you do not have an accountant, simply provide us with the following documents: