What do i need to do after forming my limited company?

So you've thought about it for a while and finally taken the plunge. You are now the proud owner of a Limited Company.

So what's next?

There are a few things you must do and few others that we recommend.

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What you are legally required to do!

You should do the following from the day you launch your business:

• Once your Company starts trading, you must let HMRC know
• You are required to keep adequate records of all your transactions. Either in a book, spreadsheet or using software.
• If you will be employing any staff, you have to register for PAYE.
• You should monitor your turnover to check if you need to Register for VAT.
• You should consider making a voluntary VAT Registration even if you don't reach the turnover threshold of £79,000.

The following are things you must do after the end of your first year of trading. But it is highly recommended that you think about this from the beginning to get the best accounting and tax results (i.e. pay less tax).

• On the anniversary of forming your Company, you will be required to complete and file your Annual Return with Companies House. This is a document that states a few basic facts about the Company, it's Directors and Shareholders.

• 9 months after the end of your first accounting year, you have to do 3 things:
• File your Annual Accounts at Companies House. This will include your financial results from your first year of trading.
• Pay any tax due to HMRC.
• File your Corporation Tax Return with HMRC. This will include doing a tax calculation and also completing the tax return ("CT600").

Other points to consider

If you were previously trading as a sole trader

• Notify HMRC that you've stopped trading.
• You may be able to extract some tax free cash from the business if your business has any goodwill, such as a 'well known trading name'.

Are you one of the Directors?

• You should make arrangements to register and file your personal Self Assessment Tax Return

Highly recommended...

Before you start trading, draw up a very short business plan (2-3 pages long). This might sound unnecessary if you're not looking for investment or a loan. But it can really help you have a clear direction when you start.

Businesses that have a clear goals and targets from the beginning will do better going forward.

If you are unsure about any of the above, come and see us at our offices in Highgate, North London for a FREE CONSULTATION.

We love hearing from new businesses and watching them grow and succeed.

ARRANGE A FREE CONSULTATION