After your limited company is incorporated, your accountant can assist you with registering your limited company at HMRC for tax. Square Mile Accounting’s experienced team will help new directors save time and offer peace of mind, knowing that applications are complete and correct. A limited company will usually need to be registered for the following:
All companies pay Corporation Tax on their annual profits and have to be registered with HMRC within three months of commencing trading. HMRC will notify you of your Corporation Tax accounting period, along with the relevant submission and settlement deadlines, once they have received form CT41G.
Companies are also liable to pay Employers’ National Insurance Contributions (NICs) on all salaries paid to their staff.
If you have employees or directors who will be taking a salary from your business, you will need to register your company for PAYE with HMRC.
Should you register for VAT?
Value Added Tax applies to almost all products and services in the UK. Unlike other taxes, VAT is collected by businesses on behalf of HMRC.
If your company is likely to turnover £82,000 (2015/16 tax year) or more over the next 30 days alone, you will go over the VAT threshold and will have to be VAT registered.
There may be benefits for registering voluntarily, even if your Limited Company isn’t expected to reach the current threshold for compulsory registration. In some industries, being VAT registered is the ‘norm’, and may even be required. If you make a lot of purchases, you can claim back the VAT.
All the required VAT registration forms are available on the HMRC website; however, when forming your Limited company through Square Mile Accounting, this process is taken care of for you and you will be registered usually within 5 – 6 weeks. In the interim, you can continue invoicing your clients and reclaim VAT on your business purchases.