How to Run a Small Limited Company
Without an accountant you are going to need some simple advice on running a limited company. Information in this section is helpful guidance on how to run a small organisation.
DIRECTOR DUTIES: The directors of all limited companies have several important and legal responsibilities. Their duties include:
- Adhering to the company rules set out in its memorandum and articles of association.
- Keeping company records and reporting any changes to Companies House.
- Filing accounts and tax returns, and paying Corporation Tax.
- Informing other shareholders if you may benefit 'personally' from a company transaction.
- Registering for Self Assessment and sending a personal Self Assessment tax return each year.
Note: There are some exceptions for Self Assessment registration and tax returns. They apply most to a non-profit organisation (e.g. a charity) and not receiving pay or any benefits (e.g. a company car).
You can get help with tax issues by hiring other people (e.g. an accountant). They often help manage the day-to-day running of a small private limited company.
But, the director has the legal responsibility for the company records and accounts. They are also responsible for the trading performance of a limited company.
Note: Failing to meet the responsibilities can result in a fine, prosecution, or a disqualified company director. Get in touch with a professional adviser or the trade association for further advice.
Running a Limited Company Guide
Part of learning how to run a limited company is understanding limited company formation. This type of business has a separate identity to working for yourself as a sole trader. Even so, it is the responsibility of a director to set up the company and submit annual returns.
This section explains how to report circumstantial or business changes in the organisation. It also covers how to take money or benefits out of your limited company.
Follow UK Rules for 2019 Updates!
Accounting and Tax
ACCOUNTING RECORDS: There are legal requirements for company accounting and record keeping. Check out the section that explains what records you need to keep for a limited company.
ANNUAL ACCOUNTS: You need to prepare annual accounts for Companies House at the end of your company financial year. Use the online service to file annual accounts with Companies House for your company.
ANNUAL RETURN: You must submit a confirmation statement each year to confirm Companies House has the correct information. You can file a confirmation statement and sign up for email alerts.
AUDIT EXEMPTION: Check if your limited company gets an exemption from having its accounts audited and the process if shareholders ask for one.
CHANGE YEAR END: You can change your limited company year end to run for more than 12 months (or less). Check how to change accounting year end for a limited company.
COMPANY CHANGES: The convenient way of filing a change with Companies House is online. But, you can also inform them of changes using software or by postal methods.
FILING TAX RETURNS: The accounts and tax returns for private limited companies are annual. They take place after the end of the company's financial year.
Company Directors
DIRECTOR'S LOANS: A director's loan grants access to money in the bank account of your limited company. So, what are the responsibilities for repaying a directors loan and how should you report it to HMRC?
FIND A DIRECTOR: You can search for disqualified directors to check if someone is banned. Companies House register stores details from the courts and the Insolvency Service.
REPORT A DIRECTOR: There are several reasons to report a disqualified director to The Insolvency Service. You can also make a complaint using the online form.
UNFIT CONDUCT: The page explains when and how you can get disqualified from being a director of a company. Check how the company director disqualification process works if you get banned.
Dealing with Debt
BEING STRUCK OFF: There are valid reasons for a company to be removed from the companies register. Even so, there is a way to object to a limited company being struck off and stop the application.
RESPONDING TO CREDITORS: There are several ways of dealing with limited company debt if creditors take action. Check how to respond to a court judgment, a statutory demand, or a winding-up order.
Flat Management Companies
RIGHT TO MANAGE: A change in regulations has seen an increase in property management businesses. Check how to set up a flat management company and run it 'legally' on behalf of the residents.
Limited Company Management
CLOSING DOWN: There are several legal ways to close down your UK company. Find out how to close a limited company and how to strike off your limited company from the Companies Register.
MAKING CHANGES: You must follow the proper steps when making alterations to company information. Check who to notify and how to make changes to your private limited company in the UK.
REPORTING CHANGES: It is not uncommon for a company to make some changes, such as the registered office address. But, there are certain company changes that you must report to Companies House or HMRC.
RESTARTING: There is a set procedure for restarting a non-trading or dormant limited company. You would need to manage Company Tax Returns, Corporation Tax, and annual accounts if you start trading again.
SIGNS & STATIONERY: The company must display a name sign and include specific details in business letters. Check the regulations on signs and stationery for limited companies.
WITHDRAWING MONEY: The rules and procedures for taking money out of a limited company allow 4 different methods. The reason for withdrawing cash, and the amount, determines how you take money out.
Overseas Companies
FILING ACCOUNTS: Companies incorporated abroad need to file accounts in the UK as an overseas company. Check how UK established companies file annual accounts with HMRC and Companies House.
REGISTER IN UK: As a company incorporated overseas, you will need to register with Companies House to set up a legal business in UK. Check how to register as an overseas company in the United Kingdom.
Setting Up a Limited Company
INCORPORATION: You do not always need an accountant to form a limited company. But, there are several key rules to set up a private limited company in the United Kingdom.
The Queen's Awards for Enterprise
UK AWARDS: Current format of The Queen's Award for Enterprise has four categories. Check how to enter using the online entry form, eligibility criteria, and the deadline to make a nomination.
How to Run a Limited Company: A Guide for United Kingdom