March 2026
Making Tax Digital 2026: Is It Time to Start a Limited Company?
Self-Employed and Making Tax Digital (MTD): Is It Time to Consider a Limited Company?
From April 2026, the way many self-employed individuals report their income to HMRC will change significantly. Under Making Tax Digital for Income Tax, individuals earning more than £50,000 per year from self-employment or property will need to keep digital records and submit quarterly updates.
- Four quarterly updates
- An End of Period Statement
- A Final Declaration
This effectively means multiple submissions throughout the year rather than a single annual filing. For many self-employed professionals this has become a natural moment to review whether their current business structure is still the most practical one.
If You Have Been Thinking About Moving From Self-Employment to a Company
Many business owners start as self-employed because it is the quickest way to begin working independently. But over time the situation often changes. You may now:
- Have regular clients and stable income
- Hire subcontractors or staff
- Work with larger organisations
- Want a more structured business setup
Many professionals have already considered forming a company but postponed the decision. The upcoming Making Tax Digital changes may simply be that moment.
Self-Employed vs Limited Company
| Self-Employed | Limited Company |
|---|---|
| You and your business are legally the same person | The company is a separate legal entity |
| You are personally responsible for business liabilities | Your personal assets are usually separate from the business |
| All profit is taxed as your personal income | Company profits are taxed first at Corporation Tax level |
| You pay tax on all profit whether you withdraw it or not | You decide how much money to take from the company |
| One Self Assessment tax return | Company accounts + corporation tax return |
This structure often gives business owners more flexibility in how income is managed and distributed.
Why Many Professionals Choose a Limited Company
When you work as self-employed, you and the business are legally the same person. With a Limited Company, the business becomes a separate legal entity — your personal finances are generally separate from business liabilities.
When self-employed, all profit is treated as personal income. With a company, you choose how much to take as salary and dividends. You only pay personal tax on money actually withdrawn — remaining profits can stay in the business for growth or future distributions.
Many organisations prefer working with companies rather than individuals. A company structure makes it easier to work with larger clients, sign commercial contracts, hire staff or subcontractors, and build a scalable business.
Who Typically Registers a Limited Company?
Over the years we have registered more than 1,000 companies for clients across many industries. Our clients include:
- Consultants and contractors
- Medical professionals
- Builders and tradespeople
- Hospitality professionals
- Freelancers and digital specialists
- Entrepreneurs starting new ventures
- International clients establishing a UK business presence
What Is Required to Register?
Registering a company with Companies House is a straightforward process. In most cases we only need:
- Your chosen company name (we recommend 3 options)
- Details of the director(s)
- Details of the shareholder(s)
- A registered office address in the UK
In many small companies the director and shareholder are the same person. If you do not have a UK registered address, we can provide a registered office service for an additional fee. Once we receive the required information, the company can usually be registered within 24–48 hours.
How It Works
Complete your order securely through our payment link. Instant confirmation.
After payment, send us an email with your three preferred company names in order of preference, along with director and shareholder details.
We register your company with Companies House and send you the full digital formation pack, including HMRC Corporation Tax setup.
What You Receive After Registration
Frequently Asked Questions
How long does it take to register a company in the UK?
Most companies can be registered within 24–48 hours, provided all required information is available.
Do I need a UK address to register a company?
Yes. Every UK company must have a registered office address in the UK. If you do not have one, we can provide this service for an additional fee.
Can non-UK residents register a UK company?
Yes. In many cases non-UK residents can register and own a UK company.
Do the director and shareholder have to be different people?
No. In many small businesses the same person is both director and shareholder.
What documents will I receive after registration?
You will receive a full digital company formation pack including: Certificate of Incorporation, Company registration number, Memorandum and Articles of Association, and share structure documentation.
Will you help with HMRC registration?
Yes. We assist with Corporation Tax registration and obtaining the company UTR number.