What do I need to do as a director of a limited company?

As a director of a limited company, you have to file various official documents each year with Companies House and HMRC.  This article will cover what you have to file and when you need to do that by.

Running your business in a limited company comes with many benefits however, one downside is the increased amount of administration that a director must comply with.

What do I need to do and when?

Annual accounts

A limited company will have an ‘accounting reference date’ (ARD) or its financial year end.  The ARD is set at the end of the month, 12 months after the date of the company’s incorporation.  This can be changed by the directors by filing a form at Companies House.

HMRC will use the year end date for calculating the company’s profits and the corporation tax that arises on those profits.  The first corporation tax period starts with the date that the company starts to trade which may not be the same as the date of incorporation.

The company must prepare accounts each year and submit them to Companies House.

Confirmation statement

A confirmation statement sets out the publicly available information for the company, its shareholders and its directors.  The company must file its confirmation statement annually, but an updated document can be submitted if the company’s details change.  It is a criminal offence if the confirmation statement is not filed within the correct time period..

Form CT600

Form CT600 tells HMRC what tax the company is due to pay and must be filed with HMRC within 12 months of the company’s year end.

Corporation tax

A company must pay corporation tax on its taxable profits, currently at a rate of 19%.  The tax must be paid nine months and one day after the end of the company’s accounting reference date.

Form P11D

Form P11D tells HMRC details of any benefits and expenses provided to the company’s employees during the year.  This may include things like health insurance or a company car.  P11Ds must be filed with HMRC by 6 July each year and any related National Insurance costs paid over.

Self assessment

A director of a limited company is required to complete and submit a tax return by 31 January each year.  Tax due is then payable in 6 monthly installments in January and July.

VAT return

If your business is registered for VAT, you are required to submit a VAT return on a regular basis – this may be monthly, quarterly or annually.

You must register for VAT if your business’ taxable turnover is more than £85,000 in any 12 month period

If you have any questions about the above or any other responsibilities that you may have as a director of a limited company, please get in touch with our managing partner, Melanie Richardson using the contact details below

Email: melanier@swindellsaccounting.co.uk

Tel: 01825 763366