A Limited Company is a separate legal entity, that will live on beyond the death of its Directors. Trading through a Limited Company brings benefits, but also creates additional responsibilities for its officers.
This is the choice of trading style for the majority of our business clients, so we’re well versed in keeping them safe, up to date and helping them get, and keep, the most from their hard work.
- A Limited Company is required to file Accounts with Companies House each year, within nine months of its year end. Failure to do so will incur a late filing penalty. The content of these accounts will depend on the turnover of the Company.
- A Confirmation Statement is also required by Companies House each year, which updates any changes to the details of the officers and shareholding of the Company.
- The profits of a Company are included on a Corporation Tax Return that has to be submitted to HMRC each year, any Corporation Tax that is identified as due on those profits must be paid within nine months and one day of the year end.
- Directors have a responsibility to put the interests of the Company before their own, amongst others. Be sure you understand those responsibilities and accept them before you commit to trading through a Limited Company.
In this section of our Information Centre, you’ll find a range of articles and posts that will help navigate the challenges you’ll face as a Director.
Many of the articles and information in this section will also be relevant to Limited Liability Partnerships (LLPs), but there are also some significant differences between the two business structures. Please either seek guidance or get in touch if you’re already operating as an LLP or are thinking about doing so.
As ever, if you have any questions after reading any of these posts, please get in touch!
Director’s Responsibilities – are you sure what they are?
Being a Director can be exciting or daunting, but the position comes with legal responsibilities that you MUST be aware of. Are you clear on them and the way they apply to you?
PROOF – the FREE scheme to protect your Company
There are many risks when you run a company, but there are simple, and free, ways to reduce some of them and gain some peace of mind. Companies House offers two services that we believe every company owner should make use of. The first is the PROOF Scheme. This protects your company from Corporate Identity Fraud, which is an ever increasing problem.
How to use a Shareholders Agreement to protect your business
We all set up in business with co-shareholders when everythings positive, but reality can cause problems! As a result, it’s really important to protect the business from unforeseen circumstances with a Shareholders Agreement.
Can I make charitable donations through my Limited Company?
We’re often asked whether it’s possible to make charitable donations through a limited company, and the answer is yes!
We’ve outlined the key points to consider below.
Can I pay my Personal Tax bill from my Company?
If you’re a sole Director of a limited company, we totally understand why this would seem like an obvious way to streamline the process of getting your tax bill paid.
Our answer though, is ‘Don’t do it!’ – here’s why…
Personal Guarantees – what you should know…
As a business grows, it is common to need to borrow extra funds.
It’s equally common for lenders to ask for a Personal Guarantee, but before you agree, there are key considerations.
Use E-Reminders to protect your company
There are many risks when you run a company, but there are simple, and free, ways to reduce some of them and gain some peace of mind.
We believe every company should take advantage of the Companies House e-reminders scheme, and here’s why…
What action is required at a Company Year End?
A company year end is a significant point in the annual cycle. There are key considerations to save tax and maximise profits, but what about the actual company year end process?
What should be done in your software, and what do you need to give your Accountant so they can prepare your Accounts?
What are Directors Loans?
Many Directors, particularly where the Company is small, can find themselves with an unexpected tax bill as result of Directors Loans.
But what are they, and what should you be aware of?
What’s important for my Year End Planning?
There are key actions that need to be part of your Year End planning to make sure you don’t miss opportunities to save tax, or to maximise your profits.
What are they? It’s all in here…
Use of home as office
HMRC’s guidance on how to calculate Use of Home as Office is misleading, so make sure you’re claiming all that you should be!
Key Tax Dates for Businesses
The tax year constantly repeats, so there are some key tax dates for businesses that you need to be aware of every year.
Missing them can prove costly, so we’d advise getting them into your diary, and carrying them forward from year to year.
What can you claim if you’re investing in your business?
When you’re investing in your business, it’s not a decision that you take lightly, and it’s one that can make a major difference to your profits and your tax liability.
It’s important that any resulting tax relief claim is considered carefully…
How much is my business worth?
This is a question we’re asked quite a lot! The truth is, a business value will depend on a range of factors and any valuation is only ever a guide for planning purposes.
Valuing a business is a complex business…
Salary or Dividends?
Since the change of dividend rates in April 2023, some Directors have chosen to withdraw cash from their company as a salary.
There are pros and cons to the decision though…
What are ‘Associated Companies’ in 2023?
Associated Companies will affect the amount of Corporation Tax due.
Additionally, the definition of an Associated Company is not as clear as you may first think!
What information is needed for a business sale?
It’s essential to convince potential buyers of the value it holds.
In this post, we’ll look at the information you’ll want to compile before you start the sale process…
Related News Items
Why not take a look at these sections too, as there is some overlap between our categories and we’d hate you to miss out!
Management & Growth
Each of our clients receives regular updates that keep them aware of changes and suggestions; if you’d like to receive those too, just click on the button below, add your details and we’ll do the rest!
Choosing Baranov Associates to be our accountants was the smartest move we ever made. We have monthly meetings with Chris, he is our outsourced FD, to discuss the management accounts and where we are against budget. This provides us with greater clarity and focus in the business and makes a huge difference to where the business is heading.
Chris explains everything in a plain and simple language which I like.
Mrs J Mann, J Mann Associates Limited
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