Did you know that from studies carried out by Companies House between 2019 and 2020, in the UK, there were 665,495 Limited companies incorporated and 536,934 Limited Companies dissolved?
We know that any one who is considering opening a Limited Company is likely to have a number of questions about what they need to do and when they need to do it.
At The Digital Accountant, we can answer any questions you might have, and help you navigate what might seem like a minefield of legislation.
You can book a FREE 30 Minute Discovery Call with one of our team to discuss how we can help you.
Did you know that in order to operate as a limited company in the UK, there are a host of legal responsibilities that you as the company owner must comply with?
The three main requirements are - Statutory accounts, Corporation Tax Returns and Confirmation Statements.
As a Limited Company owner it is your responsibility to ensure that all three of these are submitted on an annual basis. This is to ensure the company remains compliant with the laws, failure to do so could result in the company being struck off (closed) by Companies House, and. fines issues by both Companies House and HMRC
Additionally If you would want to pay yourself or an employee a salary, you must register with HMRC for PAYE (Pay As You Earn)
Similarly if your sales are over £85,000 in a rolling 12 month period, you must register with HMRC for VAT.
It is also necessary that any director(s) of the company complete a Self-Assessment Tax Return on an annual basis, in order for them to pay Tax on their income.
You might be thinking, but i thought my Tax was deducted automatically from wages?
The simple answer is Yes, but directors of companies with other income such as Dividends, must report it in a Self-Assessment Tax Return.