Auditox Accountancy deal with limited company accounts every single day and take great pleasure in taking the responsibility and stress of preparing your end of year accounts, corporation tax, VAT returns & payroll out of your hands.
Private limited companies or public limited companies its all the same to us. We help you with tax planning to make sure your are running things efficiently and dont make any mistakes along the way.
A limited company is legally distinct. This definition means the business is legally different from the people behind the company, and business finances are separated from individuals’ finances. It is a separate legal entity. The limited company pays tax and can maintain profits and assets.
The primary type of limited companies are:
A private limited company is prohibited from selling shares to the general public. This is the most popular small business entity setup in the UK.
A public limited company or a PLC can sell shares to the general public. This helps businesses raise capital, and a PLC must have issued a minimum of £50,000 shares before it can trade shares. This can happen on the stock exchange.
PLCs are more commonly associated with larger businesses.
A solid reason to operate a limited company is the distinction between the owner's finances and the business. If a company owes money or fails, shareholders and owners aren’t liable for business debts.
This outcome isn’t the case for sole traders. So, it is a valid reason to act as a separate legal entity.
It is possible to register your company by post or do it online. You can do this work yourself, or hire a professional to do the work for you. You can call on a solicitor or an accountant to manage the corporation process for you.
At Auditox Accountancy, we offer incorporation services, and we are more than happy to help.
Information you have to supply for the incorporation process include:
This information should be readily available, so the incorporation process shouldn’t be too challenging. Of course, given the importance of this information, many firms like assistance to ensure they get it right. We are more than happy to offer accountancy services in this case.
When a limited company has been incorporated, it must register for corporation tax. The business needs to do this in three months, or it will receive a fine.
While firms are obligated to pay this tax, they could have to pay other taxes, including:
We appreciate tax is often a taxing issue for individuals and businesses. This is no different for a limited company than for a small firm, a sole trader or even someone in traditional employment.
At Auditox Accountancy, we offer specialist accountancy services, and we are well-versed in company taxation matters. Whether you need advice or want a qualified accountant managing your company tax for you, we can arrange this.
When you have a professional maintaining and filing tax records, you can rest easy. You can also focus on more pressing matters. We’ll ensure you meet deadlines and comply with regulations, giving you one less thing to worry over.
There is no legal requirement to use an accountant for your company, but many firms choose to do so.
We believe there are many reasons you should employ the services of an accountant to support your business. The leading benefits include:
Hopefully, these reasons provide you with confidence in choosing an accountant to support your small company or business. We believe the support of a qualified professional enhances your chances of obtaining profits financial year after financial year.
If you want to see what Auditox Accountancy can do for your company, don't hesitate to contact us today.
You can, but should you, or do you want to complete your company accounts?
There is a lot of work associated with company accounts, and there is considerable pressure to submit these accounts correctly. Some people use accounting software, but you need to understand tax to file company accounts correctly.
For peace of mind, and confidence, it is best to trust an expert in this field. We help you enjoy tax efficiency
To reiterate, there is no requirement to use an accountant when submitting company accounts, but many choose to do so.
If you would like Auditox Accountancy to take responsibility for your financial statements, financial year end accounts and ensuring you maintain accounting standards, please get in touch.
Limited companies in the UK pay corporation tax, and it relates to the annual profit enjoyed by the company. A company's profitable taxes are taxable, but some business expenses count as deductibles. There are also tax allowances that can reduce the tax liability of a company.
The following outcomes affect corporation tax:
As of 2022, the primary taxation rate stands at 19% for business profits.
In April 2023, this will change. From April 2023, taxable profits above £250,000 will; be subject to a ceiling of 25%. For earnings of no more than £50,000, the rate of 19% applies. For businesses whose profits fall between these levels, a marginal rate works out at 26.5%. However, there are marginal relief benefits to assist these firms.
The form you need to submit to Companies House and HMRC is the CT600. The company must submit this form each year. The CT600 should contain turnover, company profits, tax calculations, allowances and relief you have claimed.
The deadline for filing corporation tax is not the same as the date for other tax submissions. This account should be paid before a company files their company tax return. So, the payment date relates to the accounting period for your taxation.
A company should settle their tax bill nine months and one day after the previous financial year’s accounting period ends. As an example, if an accounting period ends on 31st December, the bill is due on 1st October the following year.
There are penalties for late filing, and if you are one day late, your company receives a £100 fine. If the submission is three months late, a further fine of £100 is issued. After six months, HMRC estimates the overall bill. They also add a 10% penalty to what they believe the company’s liability is.
If the submission is 12 months late, an extra 10% lands on top of the estimated liability.
If you fail to pay on time, HMRC can take the following steps:
If there are errors in your account, you might face a fine.
If HMRC believes it was an accidental error, the fine will be between 0% and 30% of the taxation bill.
If HMRC uncovers the error, the fine is between 15% and 30%.
If HMRC learns the error was deliberate but not hidden, the fine stands between 20% and 70% when you admit the mistake.
If HMRC exposes the error, as opposed to you, the fine stands between 30% and 70%.
If HMRC believe an error is deliberate and there were attempts to hide the mistake, the fine stands at 30% to 100% if you inform them.
If you don’t inform them and HMRC believe it is a hidden deliberate error, the fine stands at 50% to 100%.
It is possible to make changes to a company tax return, but you must carry out these changes within 12 months of the deadline.
With so much at stake and significant financial penalties for late and incorrect submission, it is best to seek accountancy support. With the help of Auditox Accountancy, you can minimise the likelihood of these issues arising.
Whether you are a new business or an established company, you will be familiar with Companies House. This organisation is the regulatory body that deals with the registration of businesses and maintaining records.
The primary functions of this organisation include:
There are many limited companies in the United Kingdom. As of 2020, there were more than 4 million companies of this nature in the UK.
Limited companies must send annual accounts each year to Companies House and send a Confirmation Statement each year. This is an essential task. The Confirmation Statement includes essential information concerning the business.
If a firm makes a significant change in their business, they must inform Companies House. Examples of these changes include:
While form submission is more digital in the modern era, it is helpful to consider the paperwork associated with submitting to HMRC and Companies House. These forms include:
Yes, if you don’t file on time or accurately, the officers of the limited company risk prosecution. There is a legal requirement to comply with these tasks, so the risk of prosecution is genuine.
Also, the business receives an automatic penalty whenever they don't file an account on time.
Given the severity of these penalties, it makes sense for an organisation to seek assistance in corresponding with Companies House.
At Auditox Accountancy, we are highly experienced in submitting to HMRC and Companies House on behalf of firms. We manage annual accounts and business accounts for many businesses, with business accountancy a speciality we offer.
If you would like to discuss your options in serving the requirements of Companies House, we would be more than happy to assist you.
Yes, this is a legal requirement. If you are a medium or small business, you have options to consider when filing your accounts. It is possible to submit the full accounts, the annual or statutory accounts, but you can also offer an abridged set of accounts.
The abridged accounts are not as informative as the annual accounts, but they comply with HMRC and Companies House requirements.
These accounts are helpful, not just for Companies House, but for your shareholders. The information in these accounts keeps your shareholders informed of the company’s performance.
There is a lot of information in these accounts, including a balance sheet, a cash flow statement and a profit and loss account. These accounts should also contain a director’s report and notes.
It is customary to include a cover page, a contents page, and a page outlining the organisation's details.
It also describes how the firm has performed and its aims. If any dividends are due to shareholders, you will find them here.
The report shares the name of all company directors for that year while also sharing a brief overview of the responsibilities they hold.
Many firms use the Directors’ Report to review the past year and describe why specific results occurred. This part of the report often breaks down the financial accounts while highlighting significant events which impacted the balance sheet. There is also an opportunity to preview the upcoming year.
The Directors’ Report is signed off by a company director and should feature confirmation the board approved it.
Not all small businesses need to include a Directors’ Report with their Statutory Accounts.
If a small business employs no more than 50 employees, has a turnover of no more than £10.2 million, and no more than £5.1m in its balance sheet, it doesn’t need to submit this report with its annual accounts.
You will understand the importance of the balance sheet throughout your business. It details the value of every asset the business owns and shows what a firm owes. This document also indicates what is due to be paid up to the end of the accounts.
This document is likely to include items such as:
A director should sign this document off, and the board approve it.
This is a critical document that helps organisations and firms daily. It shows the level of available cash and how much money the business owes suppliers. It helps you review costs and expenses.
A business that is owed a lot of money might be at risk. So, knowing this encourages you to set tighter payment terms. Conversely, if you face challenges paying suppliers, you might negotiate more attractive terms.
Hiring an accountant needs to be considered, but this help more than justifies the costs. Accountancy services help your firm in many ways, including:
Virtually every business can be more efficient. Qualified accountants and industry specialists will improve your tax efficiency, so contact us for help.
Auditox Accountancy offers limited company accountancy services, including managing your annual accounts and submitting VAT returns. Your corporation tax return is a significant issue for businesses, and hiring an accountancy firm makes sense. We offer a wide range of additional services for clients like, so contact us with your requirements.
Most small companies need help with annual accounts, and limited organisations are no different. If you don’t feel comfortable using accounting software, turn to an expert in tax planning who ensures you are tax-efficient when submitting a corporation tax return.