Responsibilities for limited company accounting

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Responsibilities for limited company accounting

If you run a limited company in Manchester, you must take on various responsibilities.

UK law sees company directors as stewards for the firms they operate, rather than outright owners. They must also comply with UK tax law.

Directors’ responsibilities

Directors have various responsibilities. These include following the company’s rules, as set out in the articles of association, telling shareholders if they might benefit from certain transactions the firm makes and filing a company tax return. Directors must also maintain company records and report any changes to their name, address, or other key details to Companies House.

Company changes that directors must report

If you make changes to your company, you may have to report them to Companies House. For example, you must tell Companies House if you change your company’s registered address. If they approve, they will then inform HMRC.

You must register your company’s new headquarters in the same country. For instance, if you originally registered in England and Wales, you must also register your new address in either of those two nations.

You must also tell HMRC if you change your business contact details. These can include your name, gender, personal address, or business name.

Some changes require shareholder approval. For example, if you want to change your company’s name or remove a director, you must get shareholders to vote on the decision. In some cases, you need 50 per cent approval to pass a resolution, in others 75 per cent, depending on the nature of the decision.

Accounting records

UK limited companies must keep both company and financial records. HMRC may check company records to see whether the business paid the right amount of tax in previous years.

Essential records you must keep include a list of shareholders, directors, and secretaries, transactions involving the purchase of company shares, and mortgages made against the firm’s assets.

Limited company accounting records must include all the money spent by the company, the goods it has bought and sold, stocktaking used to calculate stock figures, and the stock the company owns at the end of the financial year. Details of the firm’s assets should also be included.

The list of limited liability company responsibilities is long. Therefore, the vast majority work with professional accountants.

Are you looking for help with limited company accounting in Manchester? If so, get in touch.

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