Ainsworth & Co, Chartered Accountants and Business Advisors.

Setting Up A Limited Company

A Limited Company is formed by registering with Companies House


We can create a Limited Company for you.


After the formation (ie. registration) of a Limited Company, there a few (!!!) more things to do, including, but not exclusively:

•  Review the initial company Registered Office and Directors' Service Addresses
•  Register with HMRC for Corporation Tax (usually automatic from Companies House)
•  Inform HMRC when the new company has started trading
•  Have a plan to file annual accounts with HMRC and Companies House
•  Consider changing the Accounting Reference (Year End) Date
•  Ensure you are keeping the Statutory Records at the Registered Office
•  Decide on the appropriate Salary and Dividend strategy
•  Set up a PAYE Scheme to process the salary
•  Consider applying for a P11D Dispensation which will save time and accounting fees
•  If required, register for the Construction Industry Scheme (CIS)
•  Consider the need for compulsory or voluntary registration for VAT
•  Consider registration for the VAT Flat Rate Scheme
•  Directors will need to register to file a Self Assessment
•  Note that most company accounts and taxes must be filed online only with HMRC
•  Set up a separate Bank Account for the company
•  Consider insurance policies in the company's name
•  Ensure that the company stationery and website are legally compliant.
•  Consider the bookkeeping method and if accounting software is appropriate
•  Consider asking an accountant to help with the above and compare accounting fees
•  Please note that accountants are required to carry out identity checks
•  Complete HMRC Form 64-8 to authorise your accountant as your agent for HMRC
•  Make a careful note of all the company's references for HMRC and Companies House
•  Make a careful note of all the company's deadlines and filing dates
•  Note that the company's Directors are responsible for all of the above



Company Taxes Summary


• Register with HMRC for Corporation Tax
• As a Director of the company you will almost certainly need to set up a Payroll/PAYE scheme with HMRC
• You will need to check whether you should register for VAT
• When the company has started trading, its Directors are required to be registered for Self Assessment for personal taxes, that is salary, Dividends and other income.

For each of the above taxes, please note:

• All of these taxes are now filed online
• Each has a separate registration process
• You can choose for each whether you or your accountant files the taxes
• Ideally all your business online taxes should be accessed on a single user sign on to the HMRC website

Please note that for Corporation Tax only, Companies House will automatically inform HMRC that the company has been formed, but this does not set in place the online filing process, you will have to do this yourself.

You will also need to inform HMRC when you start trading.

Whether you file some of the taxes yourself, it is often practical for your accountant also to have online access. You will need to supply the relevant tax references to your accountant. After your accountant has applied for online access, you will receive an Authorisation Code through the post from HMRC, which you will need to pass on to your accountant to complete the process.


Other Set Up Tasks Include:


• Open a company Bank Account.
• Consider appropriate insurance policies are in place in the name of the company.
• Ensure that the company Stationery and Website are legally compliant.


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If you need further help
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More Information About
Limited Companies


Companies House


Companies House is the home and registration place for all companies in England and Wales.
Companies House Link


GOV.UK


The UK Government is building a substantial website of information for businesses:
GOV.UK Link


Our Webpages:


Limited Company Formation

Setting Up A Limited Company

Shareholders' Guide

Directors' Guide

Director's Loan Account

Annual Accounts

Getting Paid from your Company

Limited Company Bookkeeping

Dividends

Limited Company Taxes

Confirmation Statement

Dormant Companies

Stationery