Posts

Filing with Companies House – A Guide for Limited Companies

/in , , /by

Filing with Companies House - A Guide for Limited Companies

Companies House is the Government agency responsible for maintaining the public register of companies in the UK. Filing with Companies House typically refers to the submission of various documents and records, as required by the registrar of companies in the United Kingdom. In today’s guide, we’ll take a look at what types of document need to be filed, when to file them, and what happens if they’re not filed on time.

What Sort of Documents are Filed at Companies House?

Some of the most common types of filings with Companies House include the following:

Annual Accounts

Most companies are required to file annual accounts, which include a balance sheet, profit and loss account, and notes to the accounts. The filing deadline for this varies and depends on when the company was set up.

A company gets nine months from its year-end in which to file the company accounts to Companies House and such a period helps in some ways. However, it also leaves the company’s accountants with little time to prepare and the directors with very little time to pay their Corporation Tax bill. Ideally, therefore, records should be with the accountant in the month following the company’s year-end rather than in the month the deadline falls — which is so often the case.

Confirmation Statement

The Confirmation Statement replaced the Annual Return in 2016. It confirms that information about the company held by Companies House is accurate and up to date. The Confirmation Statement must be filed at least once a year, even if there have been no changes to the structure of the company (e.g. changes to directors, shareholders, share capital etc.).

It is very important to update the Confirmation Statement when it is due. That’s because, if it becomes too overdue, Companies House is quick these days with a potentially severe punishment: a proposal to strike off the company.

Changes to Company Details

Any changes to the company’s details, such as changes to the registered office address, directorships, company name, or share structure, need to be filed with Companies House.

Special Resolutions and Share Allotments

Similarly, any significant changes to the company’s structure or decisions made by shareholders (such as issuing new shares or changing the company’s constitution) need to be filed with Companies House.

Incorporation Documents

When registering a new company, various documents such as the Memorandum and Articles of Association need to be filed with Companies House.

Once the company has been set up, the director of the company will receive an Authentication Code. This needs to be kept safe as it works like a PIN code and is used for filings with Companies House online.

Company Dissolution

Conversely, if a company is being dissolved (closed down), the necessary paperwork also needs to be filed with Companies House.

Filing requirements and deadlines can vary depending on the type and size of the company. Failure to file required documents accurately and on time can result in penalties and other adverse consequences for the company and its officers. It’s important, therefore, for company directors and secretaries to stay on top of their filing obligations with Companies House. By doing so, they should avoid the negative consequences associated with non-compliance with the law.

How do I pay myself as a Director?

/in , , , , , , , , /by

This is a question we often face from new company directors, how to pay yourself from the company.

As part of our £375+VAT package for a new limited company we offer the following;

  • company formation (including the option to have the company phrased as a special purpose vehicle for a property rental company)
  • we will register a single director with HMRC for self-assessment
  • we set up the payroll scheme
  • we arrange your chart of accounts on online software and set up the bank feed so transactions are automatically recorded

So the two ways to get paid are in the form of a monthly salary run from a payroll set up by the limited company and the second way is through dividend allocations based on the company’s annual post-tax profit.

A salary is treated as an expense to the business, therefore decreasing profits, reducing corporation tax, and in turn, minimising the amount of dividends available to then be attributed to each shareholder.

We suggest (correct as of the 23/24 tax year) a salary of £9,096 per annum (£758 p/m) as this is the minimum amount to qualify for a state pension (also known as the secondary threshold).  If there are 2 or more directors (on the secondary threshold or above) or any additional staff on the payroll above the secondary threshold for the company, the Employment Allowance offered by the government becomes available, giving the company £5,000 ‘pot’ towards the employer’s NI contributions.

If the company posts a profit, the value of the post-tax profit can be allocated as dividends to the shareholder(s) of the company.  If there is more than one shareholder, then the dividends are allocated dependent on the percentage of shares held by each shareholder.

Unfortunately, the tax efficiency of dividends is being reduced.  For the 22/23 tax year there is a £2,000 tax-free allowance, for 2023/24 there will only be a £1,000 tax-free allowance and for 2024/25 it has been stated that it will be halved again to £500.

The amount of tax you pay on dividends will be dependent on your income tax band which includes your tax-free allowance, and any earnings from the limited company and any other earnings outside.

This will need to be declared on a self-assessment tax return to HMRC, which covers the period of the UK tax year from 6th April to 5th April every year.

As part of our £375+VAT package we can enrol one shareholder/director onto the self-assessment scheme with HMRC to obtain a Unique Tax Reference (UTR) to allow them to comply with their personal tax obligations in the future.  Contact us on 020 8761 8000 for more information.

The Early Bird Gang

/in , , , , , , , , , , , , , , , /by

HMRC expects people to do tax returns for various reasons;

  • Those that have an income outside of a PAYE scheme (i.e. self-employed)
  • High earners on PAYE schemes, earning above £100K
  • Company Directors & Shareholders
  • Landlords who have rental incomes

The tax returns calculated generally run between the dates 06/04/xx through to 05/04/xy, the calculation, submission, and payment deadline  of taxes owed to HMRC (or you), would need to be submitted at the latest 31/01/xz, before penalties & interest are imposed.

Each year, the Government announces a tax free allowance, which is the amount you can earn before your income starts to get taxed.  The tax free allowance for 2018/19 is £11,850.00.  However, this allowance decreases by £1 for every £2 earned above £100k, meaning by the time your reach £125K, the allowance is £0.

The amount of tax paid on income is also specified by the government & is subject to change with announcements made generally in the Budget statements.  For 2018-19 the rates are as follows;

Tax Rate (Band) Taxable Income Tax Rate
Personal allowance Up to £11,850 0%
Basic rate £11,851 to £46,350 20%
Higher rate £46,351 to £150,000 40%
Additional rate Over £150,000 45%

*For 2019-20 the new rates & tax free allowance can be found HERE.

Since 6th April 2019, you would have been able to calculate & submit your 2018/19 tax return to HMRC, so since then the Tax Agents at Taxfile have been busy filing away for the early birds.   We have been open on Saturdays too, to keep up with the influx of tax returns & CIS returns.

However, the last Saturday that we will be open will be 29th June.  If you would like to join our ‘gang’ of Early Bird & can only come in on Saturdays, you only have a few weekends left.

Please note, on Saturdays, all our agents see clients by appointment only, and can not generally deal with walk-in clients.  So please book in advance by either calling 020 8761 8000 or booking online HERE.

So get our professional help at Taxfile & we’ll make filling in and filing your tax return a breeze.

See our Newsletter HERE