Thinking of trading through a limited company? Here are the main steps and ongoing duties. We can do all of this for you.
Setting up
- Choose a company name and check it's available at Companies House
- Decide who the directors and shareholders will be
- Every director and person with significant control must verify their identity with Companies House
- Choose a registered office address — it will be public
- Register the company (incorporation) with Companies House
- Open a business bank account in the company's name
Registering for tax
- Corporation tax: register within 3 months of starting to trade
- PAYE: register as an employer before you first pay anyone, including yourself as director, if anyone is paid over the PAYE thresholds
- VAT: register if your taxable turnover goes over £90,000 in any 12 months, or voluntarily if it helps
Paying yourself
Most directors take a mix of a small salary and dividends. Use our salary vs dividends calculator to see the most tax-efficient split.
Every year
- Confirmation statement to Companies House, at least once every 12 months
- Annual accounts to Companies House, usually within 9 months of the year end
- Corporation tax paid within 9 months and 1 day of the year end
- Company tax return (CT600) filed within 12 months of the year end
- Directors' Self Assessment, if you take dividends or other income
Keep company records
Keep accounting records for 6 years from the end of the financial year they relate to.
Not sure if a company is right for you? Try our sole trader vs limited company calculator or book a free call.