A number of important decisions must be made when a company is set-up; for example, who will own shares in the company and to what date will it make up its accounts? These decisions may have tax consequences and it is important that all of the available options are considered. The company must be registered with Companies House and HMRC, and it has an ongoing responsibility to file accounts, submit tax returns and pay any tax due. Penalties may be charged where the company fails to meet, or is late in meeting its obligations.
Once you have registered the company with Companies House, you need to register it with HMRC for corporation tax. You can do this
online.
First, you must have the company’s 10-digit Unique Taxpayer Reference (UTR). HMRC will send this to the company within a few days of the company being registered with Companies House.
To register the company with HMRC, you will need to inform HMRC of:
- the company’s UTR;
- the date on which trading commenced; and
- the date to which the company will prepare its accounts.
You have 3 months from the date trading began to inform HMRC.
HMRC are of the opinion that all directors must register for Self Assessment. Non-director shareholders who expect to be in receipt of dividends should also consider if they need to register for Self Assessment. It is possible to register
online.
We can help with all of your business and personal tax and financial planning needs. For a strategic review of your finances, please contact us.
Disclaimer: We don’t take any responsibility for actions taken based on above information. Please speak to our consultants if you need more information. This guide was written specifically for Smart Accounting clients. Some of the information contained in this guide might not be applicable if you do not have a business managed by Smart Accounting. By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details are correct at time of writing.
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