Limited Company
Helping you drive your company forward
Running a limited company
What are the deadlines?
As a general rule (first years can be different, don’t get caught out by this), limited companies have nine months after the accounting year end to submit the accounts and twelve months to file the tax returns.
Any tax due is payable nine months and a day after the year end.
We strongly recommend that accounts be prepared and submitted as soon as possible after the year end in order to have a clear picture of the business’ performance and time to ensure funds are available to pay any Corporation Tax due to HMRC.
What is a limited company?
A limited company is a separate entity in its own right which is governed by its members (Directors).
There are different types of Limited Company; limited by shares and limited by guarantee.
Limited companies report their income and expenditure in statutory annual accounts and their taxable profits to HMRC.
Limited companies pay Corporation Tax on their profits. Distributable funds (profits after tax) can be paid to shareholders in the form of dividends.
Shareholders of limited companies pay tax on their dividends via self assessment.
How does the accounting year work?
A limited company’s accounting year end is dictated by the month in which the company was incorporated (registered at Companies House).
For example, a company incorporated on 18th June 2022 would have a year end date of 30th June 2023. The first year’s accounts would cover the period 18th June 2022 to 30th June 2023. Future years’ accounts would cover 1st July to 30th June.
Year end dates can sometimes be changed, where it is appropriate to do so.
How about company tax returns?
The first year of Corporation Tax returns, using the example above, would consist of one return covering the period 18th June 2022 to 17th June 2023 and a second return to cover the period 18th June 2023 to 30th June 2023. Future returns would cover 1st July to 30th June.
These dates can be affected by other factors such as the date your company started to trade, which could result in only one return being required for the first “year”.
As our client, you will
- Understand the numbers behind your company’s tax bill
- Know the company’s tax liabilities well in advance of the deadlines
- Know that your company accounts and tax return are completely accurate
As your accountant, we will;
- Contact you as soon as the company accounting year ends
- Provide you with a simple checklist to help you get your information together
- Give you a completion date as soon as we receive your records
