So, you’ve decided to register a limited company but what exactly does this mean and what are the next steps to get up and running?
In this post we will walk you through the first year of your limited company, from registration to filing your first set of accounts.
Company Registration
Submit your company registration form through our website.
It takes companies House between 1-2 working days to complete incorporation.
When registered, we will email across your company documents.
Unique Tax Refence
Once registered, HMRC will issue your company a UTR.
HMRC aim to get these out around two weeks after the formation of your company but can sometimes take longer depending on HMRC.
If you have not received a company UTR, this can be requested through the gov.uk website.
Company Registrations
Once you have your company UTR, you can now register the company for PAYE, CIS, VAT etc.
For more information on why your company may need these registrations, please read through our previous post. (Do I need to register my limited company for VAT?, Does my limited company need a payroll?)
PAYE
Once registered for a payroll, HMRC will issue you with your PAYE references, which are needed when making your submissions to HMRC. You will then need to make RTI and EPS submissions depending on your payment schedule (this is usually weekly, fortnightly, or monthly).
If working in the construction industry, you will also have to make your CIS300 submissions and submit any CIS suffered by the 19th of each month. Once you make one CIS300 submission, you will need to continue to make them unless you deregister with HMRC, failure to do so will result in a £100 penalty.
VAT
When registering for VAT, you will be able to select if you with to make quarterly or monthly VAT returns. Most companies opt for quarterly returns, and again, during the registration process, you are able to pick the periods you wish your returns to cover.
When submitting your first VAT return, we recommend checking your online account, as the first period may be shortened or extended depending on the period selected.
End of Year
Confirmation Statement
On the anniversary of the incorporation of your company you will be required to submit a confirmation statement to Companies House. This is a mandatory submission which allows you to update Companies House with any changes such as shareholdings and SIC codes etc.
If the confirmation statement is not filed within a two-week window, Companies House will start to formally strike off the company.
Company Accounts
After the end of your company year, you will need to submit your company accounts to Companies House.
Depending on the turnover of the company, the accounts will need to be prepared and submitted in different formats.
The deadline for filing with Companies House is 9 months after the formation of your company. Failing to meet this deadline will result in a penalty.
Corporation tax return
Along with your company accounts you are also required to file a corporation tax return with HMRC. The deadline for this is 12months after the incorporation of your company.
If it is your company’s first year, you will need to submit a tax return from the date of incorporation up until the end of the month the following year. This means the period covered by these accounts is usually just over 12 months.
As with the company accounts, failure to file by the deadline will result in a penalty from HMRC.
We hope that that this post has helped you better understand the requirements and deadlines associated with running a limited company.
Due to the complexity of filing accounts and keeping on top of your deadlines, we would always recommend engaging with an accountant when you start trading with a limited company.
Our sister company Walton Accountancy offer all our registrations one month of free accounting support and advise to help them get set up and running. For more information, you can call them on 02392 593917.
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