If you’re a medical professional or aesthetic practitioner, the idea of setting up a limited company may have crossed your mind. It’s a big step that can offer many advantages, but it’s crucial to navigate the process effectively to reap the benefits fully. At AF Tax Solutions we specialise in helping medical professionals and aesthetic practitioners determine the best structure for their business.
In this guide, we’ll explore when and how to incorporate your business, what to consider during the transition and the ongoing responsibilities and opportunities that come with it.

When to incorporate your business

Deciding when to incorporate your medical or aesthetic practice is a critical first step. While there’s no one-size-fits-all answer. If your earnings are steadily growing and you’re generating an annual profit of around £50,000 to £60,000 or more, incorporation can be financially beneficial. Operating as a limited company could help you reduce your tax liability and protect your personal assets.

How to manage a limited company

Running a limited company involves specific responsibilities and obligations, including financial and regulatory compliance so you will also incur higher accountancy fees.
As your business structure becomes more intricate, you may need to hire a specialist accountant such as AF Tax Solutions. Our expertise in running a limited company is crucial to ensure you meet the increased work and compliance standards associated with being the director of a limited company.

Changing to a limited company – what you need to know as a medical professional

The transition to a limited company involves several steps, some of which are specific to medical professionals and aesthetic practitioners, such as:

  • Ensuring private clients such as BUPA know your new bank details and company name
  • Updating your invoices to reflect your new legal status

You’ll also need your incorporation certificate to open a business bank account as your company is now a separate legal entity, unlike in the case of a sole trader.

Advice on extracting money efficiently

As a director of a limited company, you have flexibility in how you extract money from the business. With us as your accountant, you will receive tailored guidance on tax-efficient ways to pay yourself, such as through a combination of salary, dividends and pension contributions.

Advice on investing/injecting cash

As a specialist accountancy firm for medical professionals and aesthetic practitioners, we can offer recommendations on how to invest or inject cash into your company to cover start-up or expansion costs such as medical equipment, rental of business premises, consumables, etc. This includes options like business loans or share capital.

We have a wealth of experience in helping medical practitioners set up a limited company in the UK and know what the best steps to take are every step of the way to avoid incurring extra costs or higher than necessary tax bills.