Limited liability protection - your personal assets are separate from company debts, reducing personal financial risk.

Lower tax rates - corporation tax is typically 19% to 25%, often lower than higher income tax rates for sole traders.

Tax-efficient profit extraction - combine salary and dividends to minimize personal tax liability.

Enhanced credibility - 'Ltd' in your business name can increase trust with clients, suppliers, and investors.

Easier access to financing - banks and investors often prefer lending to or investing in limited companies.

Perpetual existence - the company continues even if directors or shareholders change, providing stability.

Pension contributions - more flexible and often more generous pension options for directors and employees.

Expense claims - clearer rules for claiming business expenses, potentially reducing taxable profits.

International expansion - easier to set up subsidiaries or trade internationally under a limited company structure.

Employee benefits - ability to offer share schemes and other incentives to attract and retain talent.