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Limited Companies

OVERVIEW

ACCOUNTS & TAX RETURNS

After the end of its financial year, your private limited company must prepare: Full (‘statutory’) Annual Accounts and Company Tax Return.

You need your accounts and tax return to meet deadlines for filing with Companies House and HM Revenue and Customs (HMRC). You can also use them to work out how much Corporation Tax to pay.

Your accounting period for Corporation Tax is the time covered by your Company Tax Return. It’s normally the same 12 months as the company financial year covered by your annual accounts.

Filing your accounts and tax return: You must take additional steps at the end of your company’s first year or if you restart a dormant company. There are penalties for filing late with Companies House and HMRC!

 

  1.   File first accounts with Companies House;
  2.   File annual accounts with Companies House;
  3.   Pay Corporation Tax or tell HMRC that your limited company doesn’t owe any;
  4.   File a Company Tax Return
  1.   21 months after the date you registered with Companies House; [ACTION 1.]
  2.   9 months after your company’s financial year ends; [ACTION 2.]
  3.   9 months and 1 day after your ‘accounting period’ for Corporation Tax end; [ACTION 3.]
  4.   12 months after your accounting period for Corporation Tax ends [ACTION 4.]

BENEFITS & DRAWBACKS

SELF-EMPLOYED

  •  Lower accounting fees
  •  Less paperwork and less hassle
  •  You can withdraw any amount of profits
  • Higher National Insurance
  • Full responsibility for the business
  • Single person entity
  • Less prestigious
  • You can only have a Personal Pension

BENEFITS & DRAWBACKS

LIMITED COMPANY

  • Less National Insurance liability
  • Limited liability
  • The company can have more than 1 director
  • Prestigious
  • Higher accounting fees
  • Monthly, quarterly and annual returns to HMRC and to Companies House
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