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Ah yes, I have come across that before. I had a small business a few years back. It was largely B2C but there was some B2B work and we were set up as a Ltd. CO. A couple of schools that used us would only pay limited companies and I wondered at the time if we would have just not got the business...

Earning £500 a month, would you not be better being set up as a sole trader rather than Ltd. CO.? If you do find additional clients then you can always set up a company at that point. Being a sole trader is alot less onerous with regards to the accounts. You will have to do a self assessment...