Limited Company Starter Pack
A practical guide to setting up and running a UK limited company - company formation, how to pay yourself as a director, salary vs dividends, Corporation Tax, PAYE, and your first-month action plan.
Sample content
What it looks like inside
Sample extract - How to Pay Yourself as a Director
Salary and dividends - how the two work together
As a director, the company's money is not your personal money until it is paid to you lawfully. There are two main ways to pay yourself.
1. Salary (through PAYE)
- Salary is deductible from Corporation Tax as a business expense
- The company must register with HMRC for PAYE before your first payday
- Even a small salary requires PAYE - register early
2. Dividends (from post-tax profits)
- Dividends are paid from distributable profits - profits after Corporation Tax
- You cannot legally pay dividends if there are no distributable profits
- Keep a dividend voucher for each dividend payment
- Dividends are not deductible from Corporation Tax
Taking money from the company in any other way creates a director's loan. If not repaid within 9 months of your accounting period end, the company owes additional tax.
This is one extract from the How to Pay Yourself module. The full pack covers five modules.
Key risks
Helps you avoid
- Treating company money as personal money - it is not until properly paid out
- Missing Corporation Tax registration within 3 months of starting to trade
- Missing Companies House annual accounts and confirmation statement deadlines
- Paying dividends when there are no distributable profits - this can create a director's loan and a tax charge
- Ignoring PAYE - you must register before paying yourself a salary, even a small one
Contents
What's included
Company Formation
How to register a limited company with Companies House.
- Choosing a company name and structure
- Registering with Companies House
- Setting up your registered office
- Share structure basics for a simple company
How to Pay Yourself as a Director
Salary and dividends - how the two work together and what you need to know.
- Why salary and dividends are treated differently
- Salary goes through PAYE - register before your first payday
- Dividends come from post-tax distributable profits only
- Dividend vouchers - why they matter and what they contain
- Director's loan account - what it is and when it creates a tax problem
Director Duties and Compliance
What you are legally responsible for as a company director.
- Legal responsibilities under the Companies Act 2006
- Confirmation statement requirements
- Annual accounts filing deadline (9 months after year end)
- Keeping statutory registers
Corporation Tax and PAYE
The two main tax obligations for a new limited company.
- Registering for Corporation Tax (within 3 months of trading)
- Corporation Tax rate and payment deadline
- PAYE registration and running payroll
- VAT registration - when it applies
First-Month Action Plan
Step-by-step tasks to complete in your first month.
- Register with Companies House
- Open a business bank account in the company name
- Register for Corporation Tax
- Set up PAYE if paying yourself a salary
- Set up accounting software and chart of accounts
Scope
What this does not include
- Company secretarial services or Companies House filing on your behalf
- Annual accounts preparation or Corporation Tax return filing
- Director remuneration calculation specific to your circumstances
- Payroll setup or management
- One-to-one advice or the ability to ask questions
- Complex situations: multiple directors, investors, complex share structures
This is a self-serve information product. It does not include one-to-one advice, filing services, accounts preparation, or assessment of your full circumstances.
Best for
- New limited company directors with no prior company experience
- Solo directors who want to understand how to pay themselves as a director
- Anyone who has recently incorporated and is unclear on their obligations
Not for
- Sole traders - see Sole Trader Starter Pack
- Companies with employees, complex share structures, or multiple directors with conflicting interests
- Anyone already working with an accountant covering this ground
Audience
Who is this for?
This pack is for first-time limited company directors in the UK. If you have recently incorporated (or are about to) and want to understand the key steps, what you are responsible for, and how to pay yourself as a director - this is for you.
It covers the essentials without assuming any prior knowledge of company law or corporate tax. If you have used our Structure Checker and it pointed toward limited company, this is the logical next step.
Process
How it works
- 1
Complete a secure one-time payment
No subscription, no recurring charges
- 2
Your pack is ready immediately after purchase
No waiting, no manual delivery
- 3
Work through the five modules in order
Start with Company Formation, then How to Pay Yourself
- 4
Use the First-Month Action Plan to stay on track
Prioritised so the most time-sensitive tasks come first
Questions
Common questions
Does this include company secretarial services?
No. It explains what you need to do and when, but does not file anything with Companies House or HMRC on your behalf.
Will it tell me exactly how much salary and dividends to take?
No. The pack explains how salary and dividends work and the factors that affect the split. Calculating the right amounts for your specific situation needs a qualified accountant.
Does it cover payroll?
It covers PAYE registration and what running payroll involves. It does not include payroll software setup or ongoing payroll management.
What if my company has more than one director?
This pack is designed for simple single-director companies. Multi-director companies or those with complex arrangements should work with a qualified accountant.
What if I need to ask questions?
This is a self-serve product and does not include one-to-one support. For guidance on your specific situation, consider working with a qualified accountant.
Not sure whether a limited company fits your situation?
Try our free Structure CheckerLimited Company Starter Pack
- Company formation and registration steps
- How to pay yourself - salary and dividends explained
- Corporation Tax and PAYE basics
- Director duties and compliance deadlines
- First-month action plan
Secure payment via Stripe · Instant access after purchase
Digital product, delivered immediately on payment. By purchasing you accept that your right to cancel does not apply once access is granted. Refund Policy
Important
This guide covers the standard setup requirements for your business type, based on publicly available UK government guidance. It is designed to help you understand what commonly applies. It does not constitute specific tax, legal, or financial advice. For advice specific to your circumstances, consult a qualified professional.
Last updated: 2026-04-27