Test yourself

Fill in the gaps in the text. Write ONE word each time. Sometimes a CAPITALIZED word is given as a hint.

Types of limited company
Most small businesses that opt for limited company status become private (1 p.) companies (Ltd.) rather than public (1 p.) companies (PLCs). The main differences between them are that:
• PLCs can raise money by selling shares on the (1 p.) market - private limited companies cannot;
• PLCs must have (1 p.) capital (pol. kapitał udziałowy) of at least £50,000;
• PLCs must have at least two (1 p.) (pol. udziałowcy), two directors and a qualified company (1 p.) .

A private company limited by shares can convert into a PLC, but it will need to re-register in order to do this.
Private limited companies are owned by their shareholders and are (1 p.) by shares. This means that shareholders who paid in full for their shares are not (1 p.) for (= responsible for) the company's debts. Shareholders who part-paid for their shares are liable for the (1 p.) amount owing to the company for their shares.

Tax matters of a limited company
Limited companies have to pay COMPANY (1 p.) tax (pol. podatek dochodowy od osób prawnych) on their income and profits. They also need to operate a PAYE (Pay As You Earn) system to collect and pay income tax and National Insurance CONTRIBUTE (1 p.) (pol. składki ubezpieczenia społecznego) from their employees - including company directors.

The company itself must work out how much corporation tax it needs to pay, using a self-ASSESS (1 p.) system. To avoid paying penalties, it's important to understand how this system works and when your company needs to make RETURN (1 p.) (pol. zeznania podatkowe). Your accountant or auditor will be able to advise you.

What do I need to do about taxes when I set up a company?
When you register a new company, the Companies REGISTER (1 p.) will pass on the details to HM Revenue & Customs (HMRC) (pol. Urząd podatkowy i celny). You must also contact your own local HMRC office to let them know that your company exists. If you do not do this, you may have to pay a PENALIZE (1 p.) .