Frequently asked questions about ekonomi & juridik

Monthly bookkeeping for a small limited company costs £120–400. Payroll adds roughly £20–60 a month plus a few pounds per payslip. Year-end statutory accounts and the corporation tax return are normally quoted separately at £600–2,000, and a self assessment return at £150–400. Most fees are quoted excluding VAT.

Most small companies are exempt. You generally need one once you exceed two of the three thresholds for turnover, balance sheet total and employee numbers for two consecutive years, and also if shareholders holding 10% or more demand it or your articles require it. Charities, FCA-regulated firms and some subsidiaries have separate rules.

A general commercial solicitor charges £150–350 an hour outside London and more in the City. Specialists in corporate, IP or tax run £350–700. Many firms offer fixed fees for defined work such as a shareholders' agreement or a set of contract templates from £350. Always ask for an engagement letter setting out the fee basis.

A limited company gives you limited liability and usually becomes tax-efficient somewhere above £30,000–50,000 of profit, depending on how you split salary and dividends. The trade-off is Companies House filings, statutory accounts, a confirmation statement and your details on the public register. Talk it through with an accountant before you incorporate.

Corporation tax is 19% on profits up to £50,000 and 25% above £250,000, with marginal relief tapering between the two. Associated companies reduce those thresholds. Dividends are taxed separately on your personal return, so ask your accountant to model the salary and dividend split each year rather than repeating last year's.

Registration is compulsory once taxable turnover passes £90,000 in any rolling 12 months, or if you expect to pass it within the next 30 days. The standard rate is 20%, with reduced and zero rates on some goods and services. Registering voluntarily below the threshold can pay off if your customers are VAT-registered. Returns are filed digitally under Making Tax Digital.

Employers' liability of at least £5 million is a legal requirement the moment you have staff, with fines for going without it. Public liability is expected by most commercial clients, professional indemnity is essential for advisory work and mandatory for some regulated professions, and cyber cover matters as soon as you hold customer data.

Put payment terms in the contract, invoice promptly and chase on a schedule. Under the late payment legislation you can claim statutory interest of 8% above the Bank of England base rate plus fixed compensation of £40–£100 per invoice, and reasonable recovery costs. Beyond that, a letter before action and then the online money claim service handles most small debts without a solicitor.