Tax And Filing Guide For Limited Companies
Congratulations! You’ve created a limited company. But do you know about your responsibilities when it comes to tax?
We’ve created this easy-to-follow tax guide for limited companies, and it will help you to understand the dos and don’ts of your tax obligations and statutory filing so that you can focus on more important things like running your business.
When it comes to running a limited company, we understand that there’s no such thing as ‘one-size-fits-all’. Joanna Bookkeeping is a professional practice based in Oxford, UK, offering bespoke accounting and bookkeeping solutions that are tailored to meet your business’s needs.
In this guide we’ve covered the 4 main points that all limited company owners should be aware of when it comes to tax:
- Annual Accounts
- Company Tax Return
- Confirmation Statement
- Other Responsibilities
Annual Accounts
After the end of its financial year, a limited company is required by law to prepare annual accounts, and you must file your annual accounts within nine months of your accounting reference date. Your limited companies’ annual accounts must meet deadlines for filing with Companies House, the deadlines for your accounts can be found on the Companies House website.
Limited companies generally keep important financial records throughout the year and prepare the annual accounts from these records. Very small companies may be able to prepare their annual accounts in a spreadsheet, but larger companies with many transactions or a complicated structure will probably need to use accounting software.
Annual accounts for a limited company consist of:
- A statement of financial position also called a balance sheet
- A statement of profit and loss, plus other comprehensive income
- A statement of changes in equity
- A statement of cash flow
- A director’s report
- Notes for the accounts
*Read more about annual accounts for a limited company.
It’s good practice to hire an accountant to make sure you meet your tax obligations as a limited company. Joanna Bookkeeping can help to prepare and file the annual accounts for your limited company, and guide you through managing your accounts in general.
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Company Tax Return
Limited companies pay corporation tax on their profits and HMRC requires a company tax return every year, even if your company fails to make a profit. Limited companies must file their tax returns online and include statutory accounts and accurate calculations detailing the outcome of the final figures. This is done by filling out a form called a CT600.
You are required to pay previous corporation tax before the deadline for sending your next company tax return, the deadline for submitting the return is 12 months from the company’s accounting period and you must pay corporation tax no later than 9 months and 1 day after the end of each accounting period.
* Discover this helpful article: 5 things you should know about corporation tax.
Confirmation Statement
A confirmation statement is a type of document that limited companies must file with Companies House once a year. This statement contains details about the company’s directors and shareholders. The confirmation statement exists to make sure that the details on record at Companies House regarding your limited company are correct.
Your confirmation statement must be filed at least once every 12 months (it can be filed more often if information changes before your next review period). Your 12-month review period will be either on the date your company became incorporated or the date you filed your last confirmation statement. Your statement must be filed within 14 days of the end of your review period.
Other Responsibilities
Although all limited companies are required to adhere to the points made above, in certain circumstances, some additional statutory duties may apply. This may include VAT returns if a limited company is registered for VAT, or PAYE reporting to HMRC if a company employs members of staff. Hiring an accountant is really beneficial to make sure your limited company is in full compliance with UK law.
Joanna Bookkeeping is always here to help! Book a FREE call and have a chat with our professional Oxford-based accountants to learn more about how we can help your limited company with its tax obligations. PLUS – because we’re fully digital, we offer services to businesses all over the UK!
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