20 Jan 3 handy accounting tips for limited companies
When setting up your business, choosing how to structure it is key.
This can often mean choosing to be registered as a limited company with the UK Government. Many businesses will also choose to or be required to register as a limited company when they grow above a certain level. But what handy tips around limited company accounting should you be aware of first?
Make sure you get everything in on-time
When it comes to limited company accounting, it is key to make sure all returns are submitted by any relevant deadline. This applies whether you handle your own accounting or outsource it to an accountancy firm. As the business owner, it is your responsibility to ensure things are correct and arrive on-time. Late submissions will incur penalties and could even prompt an inspection from HMRC for example.
Make sure to submit company accounts to Companies House
Limited company accounting involves two major returns – a standard company tax return and full annual accounts. Some business owners make the mistake of sending both to HMRC but they only need your tax return to calculate the corporation tax amount. Your annual statutory account instead needs to be submitted to Companies House by the relevant deadline. Do not assume the deadlines for these are the same either – you will need to submit accounts to Companies House within 9 months of the businesses financial year ending for example.
You should do it for dormant companies
Many entrepreneurs in the UK make the mistake of thinking that no accounts need to be submitted for limited companies which are dormant. This is not true and could see both HMRC and Companies House applying penalties to you. Dormant businesses do still need to send in tax returns and annual accounts, even if they do not show any activity.
Let SQK Accountancy help with limited company accounting
While there are advantages to registering as a limited company, it also brings more complex rules and regulations. Even the most financially minded business owner can struggle with getting all this done on-time and in line with ever-changing rules. With this in mind, it is often best to use a professional accountant to save time and worry.
If you are based in the Manchester area and would like to find out how SQK Accountancy can help, contact us via our contact form, or call today on 0161 7060444.