You’re finally ready to join the big leagues, take your business to the next level, and form your very own Limited Company. Maybe you’ve already done so, but are worried that you’re in over your head as you’re being hounded by emails and letters from Companies House and/or HMRC. Forming a Limited Company is relatively simple, yet handling the logistical side of things can be tricky, particularly if you’re busy, you know, actually earning a living whilst running your own business. Because of this, Limited Companies hire experts, such as ourselves here at Phoenix, to take care of their finances and filing responsibilities for them, leaving them to carry on doing what they do best. As the director of a Limited Company, it is your responsibility to ensure that you annual returns and accounts are submitted on time. You also have a number of responsibilities and legal obligations to meet in the process. To help give you a little more insight into what these annual requirements and responsibilities actually entail, we’ve very helpfully compiled this handy list, so take a look and familiarise yourself with these requirements.
Annual returns – These returns, not surprisingly, should be submitted annually, before a specific deadline which will be the end of the financial year of your company. Think of your annual returns as a snapshot of brief info regarding your LTD Company I.E Directors or Shareholders for example. Many directors actually confuse this with their accounts, yet in reality the two are very different, although granted, they do perhaps look and sound similar on paper. Your annual returns have to be filed at Companies House, along with a small fee. If you file electronically, the fee is £13, or on paper, it’s £40. The info in these returns should include:
- A profit and loss account listing running costs, sales, and losses or profits for that year
- Balance sheets listing the value of the assets possessed by your company along with what it owes
- Auditors report
- The Director’s report
- Special notes about your account (if applicable)
CT 600 Corporation Tax Return – As well as your accounts, which we’ll come to next, HMRC also requires CT 600 Tax returns to be submitted, which is unfortunately more complex than a standard form, which is why it’s highly recommended you hire an accountant.
Annual accounts – HMRC requires a complete set of accounts, which should include, in detail, your profits/losses. Companies House requires a brief breakdown of your accounts, but make sure you file your info with BOTH.
Quarterly VAT returns – If your company has exceeded the VAT threshold over the previous twelve months, you must account for VAT. When businesses register for VAT, each quarter they must complete a quarterly VAT return form, which will be due at the very end of the month, which follows the end-date of that particular quarter. If you’re late, you’re fined, you’re charged interest, and you may face further action. What’s worse, is that you can be fined by BOTH Companies House, and HMRC, with fines starting at £100.
Other filing responsibilities include:
- Director’s tax return
- RTI submissions
- And more…
As you can see, that’s a fair amount of paperwork to get through, and it’s certainly not simple or timesaving, which is where we at Phoenix come into the mix. We can handle all of the above, and much more besides, for a low fee, leaving you free to carry on running your business, without stressing over the logistical side of things. You simply leave us to do the hard work for you. Contact us today to request a free demo of our amazing cloud accounting software. It may be the smartest business decision you make!