Limited Company Accounts and Corporation Tax

What a company has to file

• Statutory accounts to Companies House, generally within nine months of your year end
• A Corporation Tax return to HMRC, generally within twelve months of your year end
• Corporation Tax payment, which is due earlier than the return, normally nine months and one day after year end
• A confirmation statement each year, keeping your company details current
• Payroll and RTI submissions if the company pays anyone, including you

Note that the tax is payable before the return is due. That ordering surprises a lot of first-time directors, and it is the single most common cause of unexpected interest charges.

Salary, dividends and what you take out

How you draw money from your own company affects what you pay personally and what the company pays. There is usually a sensible balance between salary and dividends, and it depends on your other income, the company’s profits and what you need to live on. We will work through it with you rather than apply a rule of thumb.

Starting a company

If you are thinking about incorporating, talk to us first. Being a limited company suits many businesses, but not all of them, and the admin is heavier than being a sole trader. If it is right for you we will handle the formation and the registrations that follow.