Introduction – Going Limited Is a Big Step (You Shouldn’t Take It Alone)
At Accounting Matters, we regularly speak to sole traders who are ready for change.
They’re working hard.
Their turnover is growing.
Their tax bills are getting bigger.
MTDITSA is looming.
And somewhere along the way, they’ve started to realise something important:
Running a limited company is very different to being a sole trader.
Yes, there are tax benefits.
Yes, there’s added credibility.
Yes, there’s more opportunity to grow.
But there’s also more responsibility, more structure, and more compliance.
This is exactly why having the right accountant when moving from sole trader to limited company isn’t just helpful — it’s essential.
In this blog, we explain why working with a proactive, supportive accountant like Accounting Matters can be the difference between a stressful transition… and a successful one.
Why “I’ll Just Sort It Myself” Rarely Works
Many sole traders come to us after trying to manage things on their own.
Some have:
- Set up a company online without advice
- Continued using their personal bank account
- Paid themselves incorrectly
- Taken dividends without checking profits
- Missed key HMRC registrations
- Been caught out by tax bills they didn’t expect
And they usually say something like:
“I didn’t realise it would be this complicated.”
That’s because becoming a limited company isn’t just a name change — it’s a legal and financial shift.
As a sole trader:
- You and the business are the same
- Profits are taxed as personal income
- Admin is relatively informal
As a limited company director:
- The company is a separate legal entity
- You have statutory duties
- Tax works differently
- You must pay yourself correctly
- HMRC and Companies House expect accuracy
Trying to navigate that alone is risky — and often more expensive in the long run.
What Changes When You Go Limited (And Why It Matters)
When a sole trader becomes a limited company, several key things change immediately:
1. You now have legal responsibilities as a director
Directors must:
- Act in the company’s best interests
- Keep proper accounting records
- File annual accounts
- File a Corporation Tax return
- Submit confirmation statements
- Ensure dividends are legal
This isn’t optional — it’s a legal requirement.
2. Tax is no longer straightforward
Instead of one Self Assessment return, you now have:
- Corporation Tax
- PAYE (even if it’s just you)
- Dividends
- Potential VAT
- Potential CIS
- Personal Self Assessment
Each part links to the others.
3. Cashflow needs more control
You can’t just “take money out” when you feel like it anymore.
Without guidance, it’s easy to:
- Create an overdrawn director’s loan
- Take illegal dividends
- Leave yourself short for tax
This is where professional support becomes invaluable.
Why Having an Accountant Is Crucial When Going Limited
At Accounting Matters, we don’t see ourselves as “number-crunchers”.
We see ourselves as guides — helping sole traders step confidently into the role of company director.
Here’s why having the right accountant makes such a difference.
We Tell You Whether Going Limited Is Actually Right for You
The honest truth?
Going limited isn’t right for everyone — and not always right immediately.
A good accountant won’t rush you.
We:
- Review your current profits
- Look at your personal income needs
- Consider future plans
- Factor in MTDITSA
- Compare sole trader vs limited company tax
Only then do we recommend whether and when incorporation makes sense.
That honesty builds trust — and saves our clients from making costly mistakes.
We Handle the Entire Transition Properly
When you move to a limited company with Accounting Matters, we take care of:
- Company formation
- HMRC registrations
- Corporation Tax setup
- PAYE registration
- VAT review
- Opening balance transfers
- Advice on moving assets/contracts
- Director records
This ensures:
- Nothing is missed
- Nothing is rushed
- Everything is compliant from day one
You focus on running your business.
We handle the structure behind it.
We Set You Up to Pay Yourself Correctly
One of the biggest changes for new directors is how they get paid.
As accountants who specialise in supporting sole traders going limited, we:
- Design a salary/dividend strategy
- Ensure it’s tax-efficient
- Ensure it’s legal
- Adjust it as profits change
We explain:
- When dividends can be taken
- How much can be taken
- What needs to be set aside for tax
- How director loans work
This prevents stress, confusion, and HMRC issues later on.
We Keep You Compliant Without Overwhelming You
Limited companies have more deadlines — but that doesn’t mean more stress.
With Accounting Matters, we:
- Track deadlines for you
- Remind you in advance
- File accounts and returns
- Liaise with HMRC and Companies House
- Keep everything organised
You don’t need to remember what’s due when — we’ve got it covered.
We Provide Ongoing Advice, Not Just Year-End Accounts
Many accountants only speak to their clients once a year.
That doesn’t work when you’re running a limited company.
We offer:
- Monthly or quarterly bookkeeping
- Quarterly management accounts
- Regular check-ins
- Month-9 tax planning meetings
- Cashflow forecasting
This means:
- No surprise tax bills
- No last-minute panics
- No feeling “in the dark”
Instead, you feel informed, confident, and in control.
We Help You Prepare for MTDITSA and the Future
Although MTDITSA doesn’t apply to limited companies themselves, many directors:
- Still file personal tax returns
- Have property income
- Have additional earnings
We ensure:
- Digital records are maintained
- Software is in place
- Personal and company tax are aligned
- You’re future-proofed
For sole traders transitioning now, this is a huge reassurance.
We Use Technology to Make Life Easier (Not Harder)
At Accounting Matters, we use cloud-based software such as:
But we don’t just “switch it on” and leave you to it.
We:
- Set everything up correctly
- Train you personally
- Support you as you use it
- Explain what the numbers actually mean
Technology becomes a tool — not a burden.
The Difference We See When Clients Have the Right Accountant
When sole traders move to a limited company with our support, we see the same outcomes again and again:
- Less stress
- Better understanding of finances
- More money kept after tax
- Better planning
- Better decisions
- Stronger businesses
- Happier business owners
Clients often tell us:
“I wish I’d done this sooner.”
Why Accounting Matters Is the Right Choice
There are lots of accountants who will:
- File your accounts
- Submit returns
- Send emails once a year
That’s not us.
At Accounting Matters, we are:
- Proactive
- Approachable
- Supportive
- Strategic
- Detail-focused
- Human
We specialise in helping sole traders become confident, successful limited company directors — not just compliant ones.
We explain things clearly.
We answer questions.
We plan ahead.
We care about outcomes.
Because to us, your business isn’t just a file number — it’s your livelihood.
Conclusion – Don’t Just Go Limited. Go Limited Properly.
Moving from sole trader to limited company is one of the most important decisions you’ll make in your business journey.
Doing it without the right accountant can be stressful, confusing, and costly.
Doing it with Accounting Matters means:
- Clarity
- Confidence
- Compliance
- Control
- Support
- Strategy
If you’re thinking about going limited — or you’ve already taken the step and want to make sure you’re doing it right — we’d love to help.
📞 01773 747990
📧 welcome@accountingmatters.co.uk
🌐 www.accountingmatters.co.uk
Accounting Matters — because when you grow, your accounting should grow with you.