Are limited companies required to have an accountant?
Not at all! You can take care of your company’s finances and manage all of your tax and accounts deadlines, and you don’t need to use the services of an accountant if you don’t want to. That said, some of the reporting requirements for limited companies can be a bit complicated, lots of company owners find it easier to get an accountant to do it for them.
A good accountant will help you manage your bookkeeping, and use this information to help your company stay as tax efficient as possible.
Annual accounts must include
A balance sheet giving an overview of what the company owns, owes and is owed
All notes relating to the businesses accounts, including any of the director’s reports
A profit and loss account, which shows sales, running costs, profits and losses
What kind of tax return does a limited company need?
This is one of the reasons why limited company accounting tends to be a bit more complicated than it is for sole traders. The business is legally separate to its owners, so the company will need to send a Company Tax Return in its own right, as well as filing accounts with Companies House.
Then, as an individual receiving an income from the business, you might also need PAYE if you take a director’s salary, and to submit Self Assessment returns if you take dividends.
How do I register my limited company?
Limited companies must register with Companies House in a process known as incorporation. It’s fairly straightforward, or you can ask an accountant to do this on your behalf if you prefer.
The information that you use to set up your company will be made available on the public register where anyone can check them, which is why some limited company owners prefer to use a registered office address rather than their own private one.
