Unforeseen complexities

Victoria Todd considers the various difficulties that low-income, unrepresented taxpayers can face when working through a limited company

In October 2020, LITRG published a website arti cle ‘Thinking of se tti ng up a limited company? Pause and Think!’ (tinyurl.com/44emautu). Its purpose was to highlight a new guidance section on the LITRG website on working through a limited company (tinyurl.com/47nmd55d). This was the first time LITRG had published information about limited companies. 

Some people might assume that limited companies are set up either by represented taxpayers who have taken advice or by unrepresented taxpayers because they have fully researched the positi on and decided that is the best option for them. In many cases, that is true. And indeed, a limited company may well be the right choice for someone setting up a business.