Once you get company registration in UK, you have to follow numerous compliance requirements as per the UK Companies Act and Customs and Inland Revenue Tax Act.
The major compliances include conducting an annual general meeting, submitting a Confirmation Statement on a yearly basis, keeping its accounting records up-to-date, conducting financial statement audits (unless exempt), and file tax returns.
All these are important compliances and let’s understand the Compliance Companies UK in detail.
Law-Related Compliance for Companies in the UK
- While not required for a private limited company, some companies choose to appoint a company secretary to take on some of the director’s responsibilities.
- However, the company secretary cannot be the company’s auditor or an “undischarged bankrupt” without court permission.
- All UK limited companies must have a registered office address where they can receive correspondence related to the company.
- The registered office address must be in the country of incorporation and cannot be a PO Box address.
- It must also be displayed on all company correspondence, including invoices and letters, as well as on the company’s website.
- A UK limited company must appoint at least one individual over the age of 16 as its director.
- The director is responsible for running the company and ensuring that company accounts and reports are properly prepared.
- While a director can be a non-UK resident and live anywhere in the world, they do not need to reside in the UK during or after their appointment.
Event-Driven Compliance Companies UK
According to the Companies Act 2006, a company is required to notify Companies House of any corporate changes, such as alterations to:
(a) The company’s officers or their personal information;
(b) The company’s registered address;
(c) Share allocation;
(d) The end of the accounting period;
(e) Registration of a charge, which can be performed by any interested party, not just the company;
(f) Change of company name;
(g) Change of company constitution.
Furthermore, in addition to the above requirements, companies must keep a record of their minutes and registers, which can be maintained at either their registered office or another designated address.
Confirmation of Statement Compliances
In the UK, it is mandatory for every company to submit a Confirmation Statement (previously referred to as Annual Return) to the Companies House on a yearly basis.
The main objective of this statement is to provide information on various aspects, including the company’s registered office address, principal business activity, the address where the list of shareholders is kept, the type of limited company (e.g. limited by shares or guarantee), details of all company directors and the company secretary (if any), the number and value of shares issued by the company, including their ownership, and where the company keeps details of any ‘debentures’ (if applicable).
Taxation Compliances for Companies in UK
- Companies are required to prepare and file a Corporation Tax Return to report their corporation tax to HM Revenue and Customs (HMRC).
- The CT (Corporate Tax) Return must be completed even if the company has no tax to pay, except when HMRC is informed that the company is dormant for CT purposes.
- The CT Return should provide details on various aspects, such as capital allowances for business assets purchased, gains on assets sold beyond purchase price, directors’ loans not repaid at the end of the company’s financial year, repaid directors’ loans for tax reclaims, reliefs to be claimed, and losses carried forward from the previous accounting period.
Furthermore, companies also need to get VAT Registration and obey the PAYE taxation system.
For more information on this, it’s best that you consult a CA.
Workplace Pension Duties
- According to the Pensions Act 2008, all UK employers must enroll eligible employees in a workplace pension scheme and make contributions towards it. This is known as auto enrolment.
- If a UK company employs at least one person who meets certain criteria, such as being between 22 and state pension age and earning more than £192 per week, it becomes an employer with staff who need to be enrolled in a pension scheme.
- The automatic enrolment duties for the employer begin on the date of the first employee’s employment.
- A business license is a permit issued by the government or a professional body that specifies how certain business activities should be conducted.
- The licenses required for a business depend on its location, industry, and the specific activities it intends to undertake.
- Certain businesses, such as those involved in the sale of alcohol, tobacco, and gambling, typically require licenses. Examples include pubs, clubs, betting shops, and casinos.
In conclusion, compliance with various regulations and requirements is crucial for the success and sustainability of UK companies. From filing annual returns and maintaining accurate financial records to complying with employment and pension laws, businesses must ensure that they are meeting their legal obligations. Failure to do so can result in penalties, legal action, and damage to reputation. Therefore, it is essential for companies to stay up-to-date with changing laws and regulations and take proactive steps to ensure compliance. By doing so, they can protect their employees, stakeholders, and the long-term viability of their business.
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