This month we are focusing on: Different Trading Vehicles to Consider for your business
And this week are looking at: What are the requirements for a Limited Company at year-end?
Private Limited Companies are the most typical set up for small UK businesses. They cannot offer shares to the public but may have any number of shareholders.
A limited company is a completely separate entity from its owners. Everything from the company bank account, to ownership of assets, is purely company business and separate from the interests of the company’s shareholders.
Here are some of the requirements of a limited company each year
- Annual accounts must be filed at Companies House within 10 months of the year-end
- Every limited company must complete an annual Corporation Tax return (CT600) within 12 months. But any liabilities must be paid within 9 months and 1 day of the company year-end.
- A Confirmation Statement must be submitted every year to ensure Companies House records the most up-to-date information about the company.
The most popular way to open a limited company is to either use a company formation agent or your accountant. Once you register your company with Companies House, your company name is protected by law. No one else can use the same name as you, or anything deemed to be too similar.
As a separate entity, you are not reporting the profits of the company on your personal tax return – your return will include just the PAYE you have taken and any dividends.
The main advantage of running your business as a limited company is that you have a degree of protection from creditors and are likely to pay less personal tax than a sole trader.
At any stage of the business cycle, if you look like you’re going to hit the annual VAT threshold over the coming 12 months, you must also register. The threshold usually rises by a few thousand each year, this year £85,000. Make sure you let HMRC know within 30 days or risk paying a fine
If you know of a local business that needs help with business structure please do pass on our details