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Now that your UK limited company is up and running, you might wonder what’s next! For most business owners, sorting and packaging their products and services for marketing would be the first thing they do, which is okay; they need to get the word out as far and wide as possible about their new business.
There is still a lot to do after company formation and having a solid plan is essential. The first 30 days after forming your limited company are crucial, as there are important fundamentals you will need to give your company a solid start.
This guide outlines the essential steps to take after registering a UK limited company to ensure a solid launch and avoid consequences such as penalties or company strike-offs.
Essential steps to take after registering a UK limited company
Inform HMRC
The Revenue & Customs (HMRC) will be notified by Companies House when a new company is incorporated. Once Companies House approves your limited company, HMRC will post a letter to your registered office address, which will include your company’s Unique Taxpayer Reference (UTR) and information about Corporation Tax.
UTR is a tax number issued to both businesses and individuals for tax purposes. It consists of 10 digits and often appears on official communications from HMRC, especially forms related to self-assessment.
The UTR number is essential since you will need it to file your company taxes with HMRC. Necessary information regarding your company’s status of becoming ‘active’ for corporation tax and data that must be submitted to HMRC will be detailed in a letter.
You will also have to register your business for the Value Added Tax (VAT) number if your business meets the threshold of £90,000 or voluntarily.
Open a business bank account
A limited company is a separate entity, so it must have a bank account. This makes your business look professional, building credibility and trust with suppliers and investors.
A bank account helps in bookkeeping and tracking your business finances. A business bank account helps in tracking your business expenses, cash flows, and transactions, and builds the business’s credit score.
Choose an accounting reference date
Choose an accounting reference date (ADR) for your company. This reference date marks the end of your financial year, and ARD is set by Companies House, unless you change it. When choosing an ADR date, consider your company’s needs, when to make annual accounts, file tax returns, and submit accounts to Companies House.
An accounting period can be shortened as much as you like, however, it can only be extended once in five years.
Pay for data protection
If your business activities involve processing personal information electronically, using CCTV for crime prevention, administering membership records, providing counseling services, holding personal information electronically, and being responsible for medical records.
A UK-limited company must pay the Information Commissioner’s Office (ICO) annually on the anniversary of its registration to protect data. A company should pay for data protection before it starts processing personal data.
Understand legal responsibility as a director
As a limited company director, you have responsibilities to fulfil on behalf of the company. You have to understand the company’s annual requirements since you have the responsibility of filing documents to Companies House, HMRC, and other government agencies annually.
A UK limited company director has many legal responsibilities, including acting in the company’s best interests, following the company’s rules as are shown in its articles of association, keeping records and reporting changes, filing accounts and tax returns, paying Corporation Tax, exercising reasonable care, skill, and diligence, avoiding conflicts of interest, exercising independent judgment, and owing a duty of care.
Directors have a legal responsibility to make sure company accounts and reports are accurately prepared and submitted to Companies House without fail.
Register for PAYE
If you are considering having employees, the director should ensure they register for Pay As You Earn (PAYE). You need to register for PAYE Tax and include it in your payroll system, which makes it easy for employers to calculate and deduct the correct amount of tax from employees’ earnings.
Employers will be required to deduct Income Tax and National Insurance contributions before they pay your wages or pension. The tax deducted from employees’ paychecks depends on how much they earn and the type of job.
Get business insurance
The specific types of business insurance required will vary based on the nature of your enterprise; however, all businesses face inherent risks. Given that unforeseen events can occur, it is prudent to safeguard both yourself and your organisation against potential losses.
The most common forms of business insurance include public liability insurance, professional indemnity insurance, product liability insurance, employers’ liability insurance, and many others.
If your business necessitates several types of insurance coverage, it may be beneficial to consider a comprehensive commercial policy tailored to your company’s specific requirements, rather than acquiring separate policies for each type of insurance.
Appoint a secretary
A private limited company doesn’t need to appoint a secretary, but a director can hire one when in need. Should your business structure be complex or if you wish to assign administrative responsibilities, it may be prudent to appoint a company secretary. This individual is responsible for managing statutory filings, distributing annual documents, and ensuring compliance with all legal requirements.
Display company details
You are required to prominently display your company’s name at your registered office and at any other locations where your business activities take place, except in cases where your business is operated from your home.
Furthermore, your company name must be included on all official business stationery, such as documents, letters, marketing materials, emails, and websites. It is also important to provide the company registration number and registered office address on business letters, order forms, and websites.
If you are registered for VAT, your VAT registration number must be shown on your company’s invoices, stationery, and websites.
In conclusion, after incorporating a company, it is essential to ensure compliance with UK regulations. After obtaining your company registration number, it is imperative to ensure that all formation documents are accurately filed. This will not only maintain the legal standing of your limited company but also lay a solid foundation for your business.
If you require assistance with company formation and reporting your changes to Companies House, speak to Icon Offices today.
As part of our company formation service, we offer a free bank referral to banks that we have partnered with to our UK and non-UK resident customers. Our ‘one-stop’ company formation and banking process helps customers to get their accounts activated quicker and stand a chance to get cash rewards.
For more information, contact us at [email protected].
