Wanted to Start a limited company and wondering what you need to file, well we’ll tell you exactly what you need to know. As a business accountant, my team spent all day helping business owners save time and tax and, of course, make sure they’re legally compliant. All their accounts are filed with everything they need, so now we will tell you precisely what you need to do and what you need to file.
Annual accounts they’re the main ones. They’re the ones that everybody typically seeks an accountant out for they know they have to file their accounts. It’s just a case of what is it well we’ve limited companies the main piece you need. It’s the main fee when you pay an accountant to do the accounts for your limited company; that’s the main thing, the main piece of work you’re paying for, and that is, it is a set of annual compliance accounts. You know 10-15 pages depend on how complex your affairs are, and what they do is they give an account of how the businesses got on, and it helps to work out what tax is payable. We’ll talk about tax in a minute, but this set of accounts has to be done to a particular accounting standard. There are lots and lots of chat and specifics around that, and that’s what we’ve trained for years to be able to do so that will goes in. It gets electronically tagged into a piece of software. One of the main reasons you don’t see many or any business owners without an accountant is that there’s no free software, so with a personal tax return, there’s a free header, Marcie tall. There are other tools you can use with a specific limited account. You need the standard accounting knowledge, and you also need this bit of software, so as a business, we have accountants who are clients, you know, air charter, accountants, and clients because they don’t want to pay for the software license to do it.
For example, it’s very typical to find the owners of limited companies have an accountant just for filing for getting any other tax or anything else just for filing this stuff. Now your accounts need to be filed nine months after the company year-end. The trick where people get caught out on this is year one. You get 21 months from the date of incorporation, so if you incorporate it on, say early in the month, you’re not going to have the same time scale as you would typically to submit those accounts, so definitely check that out as one of the ways to check is apart from the company’s House will remind you and if you go to the public record and type in so you get a company’s House Google it. You go into there, and you can set your company name in it tells you all the key. One of those dates will be when it expects for you to follow your accounts now the accounts you file were Companies House might be different to the ones you follow the taxman, so these set of accounts they get filed with the taxman with the corporation tax return that we talked about in a minute and then you have a decision you can follow those full accounts with the company’s House or you can do a cut-down version they were previously known as abbreviated, but they now tend to be referred to as fileted these days because they change the accounting standards.
Not very important but these are the set of shorts and accounts the reason you want those shortened accounts is because the full ones show how much money you made,how much money you turned over, and all these other metrics that you might not want to share with the world whether that’s your family or your neighbors or other competitors you don’t want people knowing that detail so it’s very rare , do you ever see any new file paying the small business world these forecasts oh yeah the cut-down version so generally accountants will prepare two different sets and this is the set that needs to be submitted to two Companies House for them in the nine months all the twenty more months from registration now of course we should mention what happens ,if you don’t follow these four Companies House well if you don’t you get an instant 100 pound penalty doesn’t sound too bad does it however it gets up to 15 hundred pound very very quickly and if you do this two years in a row the penalty doubles and as a side note you can also end up in court so we mentioned corporation tax returns ,so these are the tax returns where you they the accounts are taken into account some other adjustments happen and then that actually tells the revenue what you owe them in corporation tax now that goes again electronically tagged to the revenue and the complete set of accounts that the accountant will have prepared to go with those as well as one mask well oddly the accounts we mentioned earlier that needs people . If companies house has nine months to be submitted where the tax return actually has 12, which is a bit odd and then thrown right in the middle of that is your corporation tax payment still needs to be paid nine months and a day from the company year-end so what that generally means is accountants will prepare all the accounts in good time.
if you’ve got a good accountant before those nine months, so not only if you’ve got your accounts with Companies House, you also know what you need to pay the taxman and then typically, of course, you’re going to file the tax return technically early before the 12 months is a bit of a weird one but us how it works again with this corporation tax return there’s no free software as we said. There are penalties for non-submission, so again they start a hundred pounds and go upwards. It’s the usual type of affair so make sure that there that’s filed on time now where people do get caught out on this we find a lot as in year one so if you’ve got an accountant that’s not mainly switched on or somehow you’ve managed to do this yourself be careful with the first year because quite often in revenue in customs when the company’s registered.
We’ll have a weird idea of what tax returns are needed for that company and quite often you might see somebody submit a set set thinking that’s all fine and there’s actually a very small period that needed to tax return you end up with a penalty and again these things can be appealed in the majority of cases but it’s just something to be wary of and that’s the two main big things out the way that’s the the accounts and the corporation tax return the other thing you have with Companies House is really it’s two returns but this all built into one application and that’s the confirmation statement and persons of significant control register often referred to as PSC now there’s a 13-pound filing fee that you need to do a Companies House and what this report is is it tells that company’s House each year who the shareholders are and who’s really in control of this company and that goes on there now you typically submit that on your anniversary of your company being registered but what could also happen as if you’ve submitted it early for some reason is you have a year from that date so because quite often if you change the shareholding mid-year it’s a bit of an odd one that not a lot gets reported to Companies House in the meantime.
Sometimes, if you just gave a share to your husband or wife for example it might not appear on Companies House at all and then you might be in a position where you have to try and prove who owns it and there’s nothing on the public record so sometimes people will submit and early one of these reports to sort prompt the update now in those circumstances that means now you’ve only got 12 months from that date to do it but if you think once a year is the norm and a 13-pound filing fee to do it now that is free software to do this thankfully you can log onto company’s House’s portal and you can go through there and fill in all the forms and it will let you pay them and they’re not too tricky to do but you do sometimes have issues where if you have done things with a shareholding where it’s going to ask you about rights prescribed to put in particulars and all this kind of stuff and there there’ll be some information to put in there but generally if there’s been no changes, it’s not too tricky or form if you’re interested in what counts as a person of significant control .
For example now this one is really really important, we mean actually the accounts have the same problem if you don’t of Companies House but we think we see more companies being threatened with this from not filing their confirmation statement and that’s being struck off now the company legally exists all the time it’s on this company’s house register there’s no note as it’s known in the public record and what happens is if you don’t keep up with your filing obligations the company can actually be struck off there’s a period where Companies House will write to the directors and say look you haven’t brought the record up to date with this confirmation statement or the save accounts we’re going to strike your stuff unless you do and then there’s a procedure and eventually they say okay we’re going to give you notice we’re going to strike you off in two months unless you tell us otherwise and then it’s a ticking time bomb for them to contact the company’s House and get the documents in otherwise they will strike it off the minute you get struck off any money that’s in that bank account then it becomes property of the crown and disappears now the only way to get that back is to get a call and go for a process to get the company reinstated we actually did this with a client many years ago and it is not simple and it can be costly so it’s definitely worth making sure that you’re bringing everything you should be bringing the record up to date get yourself a good accountant this on top of this kind of stuff and making sure that’s all in there because it is a scary moment , if you’ve got you know a company you’ve spent years building and then it just gets struck off and ceases to exist all of a sudden because you didn’t file a bit of paper now.
The other one that’s quite often talked about is directors may and we use the word may need a tax return now for years HMRC said if you’re a director you need a tax return that wasn’t actually in line with the law and as a result they’ve changed their mindset on it slightly but effectively ,if you’ve got tax to pay because let’s say you’re an owner director so you have dividends and things like that you can have tax to pay you’re gonna need a personal tax return so that still doesn’t go away so the company pays its bill using the fact that the company is an entirely separate legal entity to you it pays its own tax bill it has its own tax bill and you as an individual when you take money from the company may have your own tax bill and if you do have anything to pay then yes you will need to do a personal tax return so it’s just something worth bearing in mind whilst it’s not the company’s it still needs doing, if you’ve been issued one so that’s generally all of the things that need filing in as you can see some of it you’re almost undoubtedly going to need an accountant to help you with and there’s the odd bit in there you might be able to do yourself but generally people just ask accountants to do it .