What Is The Difference Between Companies House And HMRC?
You have heard of Companies House and HMRC. These are two of the most important government agencies in the UK. They are responsible for keeping track of the UK business environment and dealing with a variety of legalities that help keep your business on the right path, and as such, it is important to understand their roles, responsibilities, and what they do for you as a business owner.
That’s where we come in…
Your legal responsibilities as a business owner can be a confusing topic, but we’ve put together this article to help you understand the difference between Companies House and HMRC and the roles they play in your business life.
One of the biggest differences between the two organisations is that all information registered with Companies House is in the public domain, meaning members of the public can view this information, in contrast, the information registered at HMRC is not available to the public and is therefore private. It’s important to note that information filed with Companies House includes potentially sensitive information like directors’ and shareholders’ date of birth and address information. If you’d rather your personal address remain private, you can use registered office addresses and service addresses.
If you have a limited company or a limited liability partnership, you deal with both Companies House and HMRC but both bodies are responsible for different things. As a self-employed person or a sole trader, you report to HMRC. More about this in the two paragraphs below.
What is Companies House and what is its role?
Companies House is a public body that holds information about the companies and limited liability partnerships (LLPs) registered in the UK. Its main function is to incorporate limited companies as well as to dissolve them. It was created in 1844 and it holds information on all companies and LLPs, including details of their directors and shareholders, their registered office address, and their annual accounts.
If you run a limited company, you must file your annual accounts (also called statutory accounts or year-end accounts) with Companies House. Additionally, you also have to submit a confirmation statement, usually every 12 months, confirming details held by Companies House about your company.
What is HMRC and what is its role?
HMRC stands for His Majesty’s Revenue and Customs and is the UK’s tax, payments, and customs authority. HMRC is responsible for collecting taxes and duties and enforcing the laws and regulations associated with them. They are also responsible for ensuring that individuals and businesses pay the correct amount of tax and are compliant with the rules and regulations set out by the government. HMRC is responsible for administering the tax system for individuals, businesses, charities, and other organisations. They also provide advice, guidance, and assistance to taxpayers on how to comply with their obligations.
HMRC is also responsible for collecting and managing the national debt, as well as administering government benefits, such as child benefits, pension credits, and other social security payments. Additionally, HMRC is responsible for the enforcement of sanctions and anti-money laundering regulations, working to ensure that everyone pays the right amount of tax so that the UK can continue to provide essential public services.
It’s also worth mentioning that HMRC has the power to apply for orders requiring information to be produced, production orders, and apply for and execute search warrants.
If you have a limited company, your legal responsibility is to submit your company’s tax return to HMRC and you also send your annual accounts to support your tax return. As a sole trader, you must submit your self-assessment tax return to HMRC.
Additionally, VAT-registered businesses have to submit their VAT returns to HMRC regardless of their legal structure. You will also have to deal with HMRC if you employ people.
We hope this article has helped you understand the difference between Companies House and HMRC.
Why not get in touch with our professional Oxford accounting team today to see how they can help you and your business achieve its potential.
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