Limited Company Set-Up for Physiotherapists

When is it worth setting up a limited company?

A limited company can suit physiotherapists with substantial private or outside-IR35 income that is not all needed to live on, because profit is taxed at corporation tax rates and can be paid out over time. It brings extra accounts, payroll and filing costs, and NHS employment income cannot move into it. We model sole trader against limited company on your real figures first.

Help with this question: Limited Company Accounts & Corporation Tax for Doctors & Healthcare Professionals

How long does company formation take?

Companies House says online incorporation is usually completed within 24 hours, but checks or missing information can cause delays. Directors may need to verify their identity before applying. Incorporation does not complete all banking, tax or professional registrations. Confirm the structure, application requirements and expected timetable before committing to trading dates.

Do I need a business bank account?

A limited company’s money belongs to the company, not its directors. A dedicated company bank account keeps transactions separate and provides a clear accounting trail; check your bank’s terms before trading. A sole trader is not a separate legal entity, but a separate account is often useful for bookkeeping and tax records.

What registrations are needed after incorporating?

Following incorporation, you must register for corporation tax and set up a PAYE scheme for any salaries. You may also need to register for VAT if your taxable turnover exceeds £90,000. Medical.Accountants handles these registrations on your behalf. We ensure your business is correctly set up with HMRC from the outset.

Can I transfer my existing work into a company?

It is often possible to transfer a private practice or locum business into a limited company structure. This process requires careful planning regarding assets, contracts, and tax implications. Medical.Accountants can review your current setup to determine the most appropriate transition strategy. We provide clear guidance on the professional requirements involved.

What are the costs of running a company?

Running a company involves costs such as accountancy fees, insurance, and administrative expenses. You must also account for statutory filing fees and potential employer National Insurance contributions. Medical.Accountants offers fixed fees so you can budget for your compliance costs with certainty. We help you understand all overheads associated with your business.

Should my spouse be a shareholder?

Appointing a spouse as a shareholder can be a tax-efficient strategy for some medical businesses. This may allow for the utilisation of their personal allowance and lower tax bands. However, these arrangements must be commercially justifiable and compliant with tax legislation. We can discuss the implications of shareholding structures for your specific circumstances.

Will a company affect my NHS Pension?

Most NHS doctors and many healthcare staff are members of the NHS Pension Scheme. Contributions are deducted through payroll, and locum or private work can count only through the correct forms. High earners should check the annual allowance each year, as pension growth can trigger a tax charge.

Help with this question: NHS Pension Tax & Annual Allowance for Doctors & Healthcare Professionals

What does a specialist medical accountant do?

A specialist medical accountant understands NHS pay, the NHS Pension Scheme, locum IR35 rules and the VAT treatment of health services. That means fewer errors and earlier warnings, such as an annual allowance charge or a Making Tax Digital deadline, than a general accountant would usually give.

How much does a medical accountant cost?

Our packages for physiotherapists start at £45.83 + VAT a month, with Core at £62.50 and Growth at £75 + VAT. The right package depends on your income sources, whether you trade through a company and any payroll, VAT or pension work. We confirm the exact fee in writing before any work begins, so there are no surprise invoices.

What qualifications should a medical accountant have?

A specialist medical accountant should hold a recognised UK chartership, such as ACA or ACCA. These qualifications ensure they adhere to strict professional and ethical standards. At Medical.Accountants by ACCOTAX, our professionals are fully qualified to handle complex healthcare tax issues. Specialized knowledge in NHS pensions and medical VAT is also essential.

What is a CT600?

A CT600 is the corporation tax return that limited companies must submit to HMRC annually. It reports your company's income, expenses, and tax liability. The filing deadline is 12 months after the end of the accounting period it covers. Medical.Accountants prepares these returns as part of our comprehensive company service.

Help with this question: Limited Company Accounts & Corporation Tax for Doctors & Healthcare Professionals

How much corporation tax will my company pay?

For eligible companies, the small profits rate is 19% and the main rate is 25%, with marginal relief between £50,000 and £250,000. These thresholds are reduced for short accounting periods and associated companies. Some companies are excluded from the small profits rate. We calculate the liability using taxable profits and your company’s circumstances.

Help with this question: Limited Company Accounts & Corporation Tax for Doctors & Healthcare Professionals

How should I pay myself from my company?

Company directors typically receive a combination of a tax-efficient salary and dividends. The dividend allowance is £500 for the tax year. The personal allowance of £12,570 is available but begins to taper away once income exceeds £100,000. We provide bespoke advice to ensure your remuneration strategy is compliant.