What is a Limited Company?
A limited company is a business that is legally separate from the people who own and manage it. The company can receive income, own assets, enter into contracts and become responsible for its own debts. Most small limited companies in the UK are private companies identified by “Ltd” or “Limited” after their name.
A company is owned by its shareholders and managed by its directors, although the same person can perform both roles. Shareholders’ liability is generally limited to any unpaid amount on their shares. However, limited liability does not provide complete protection in every situation, particularly where personal guarantees have been given or a director has failed to meet their legal responsibilities.
GMS Accountants supports limited companies in Cambridge and Nottingham with annual accounts, Corporation Tax returns, bookkeeping, VAT returns, payroll and confirmation statements. We can also prepare directors’ Self Assessment tax returns where required. Whether you are starting a company or looking for a new accountant, please get in touch to discuss how we can help.
" Graham helped us enormously in our first year of trading as a limited company. He was responsive with advice, and flexible when we needed to talk to ask questions, and this helped us to have confidence that we're doing the right things to manage the financial side of our business. "
Oliver, Director, Cambridge Technical Marketing
Year-End Accounts and Corporation Tax Return
Limited companies must prepare annual accounts for Companies House and submit a Company Tax Return to HMRC. The accounts show the company’s financial performance and position, including its income, expenses, assets and liabilities. They may also be reviewed by banks, lenders, suppliers and credit-reference agencies.
For most private companies, annual accounts are normally due nine months after the financial year end. Corporation Tax is usually payable nine months and one day after the end of the accounting period, while the Company Tax Return is due within 12 months. Different deadlines normally apply to a company’s first accounts.
The Company Tax Return calculates the company’s taxable profit and Corporation Tax liability. Accounting profits may need to be adjusted for items such as expenses that are not tax-deductible, capital allowances and losses brought forward.
GMS Accountants can prepare and submit your annual accounts and Company Tax Return, explain the results and confirm the amounts and deadlines involved. Please get in touch to discuss how we can support your company.
VAT Returns
A company must normally register for VAT if its VAT-taxable turnover exceeds £90,000 over any rolling 12-month period, or if it expects to exceed the threshold within the next 30 days. Turnover should therefore be monitored regularly rather than checked only at the financial year end.
A company can also register voluntarily when its turnover is below the threshold. This may be beneficial where customers are VAT-registered or the company has significant VATable costs, although the additional reporting and record-keeping requirements should also be considered. VAT-registered businesses must maintain digital records and submit returns using compatible software.
GMS Accountants can help with VAT registration, selecting an appropriate VAT scheme, maintaining compliant records and preparing and submitting VAT returns. We can also advise on reclaiming VAT and assist with queries from HMRC. Please get in touch to discuss your requirements, or read our guide to understanding VAT.
Payroll
Whether your company has a single director or employs a growing team, payroll must be calculated accurately and reported to HMRC on time. This includes salaries, Income Tax, National Insurance, statutory payments and workplace pension contributions.
GMS Accountants can manage your payroll, produce payslips, submit Real Time Information reports to HMRC and assist with year-end requirements and workplace pensions. We can also advise company directors on an appropriate salary as part of their wider tax planning.
Please get in touch to discuss your payroll requirements and how we can support your company.
Confirmation Statement
Every company must submit a confirmation statement to Companies House at least once every 12 months. This confirms that the information held about the company is accurate and up to date. It must still be filed even when there have been no changes during the year.
The statement covers information including the registered office address, directors, people with significant control, shareholders, share capital and the company’s principal business activities. It is separate from the company’s annual accounts and is normally due within 14 days of the end of the review period.
GMS Accountants can review your company information, identify any changes that need to be reported and submit the confirmation statement on your behalf. Please get in touch if you would like us to manage this requirement for your company.
