There are many rules and regulations in the UK that govern the existence and activity of any UK company. In most cases UK companies are subject to financial and tax reporting, including VAT reports, payroll and audit requirements. Please find below more details on when and what must be done.
Our specialists will be happy to advise you on the current regulations for UK companies and help you with the issues listed below. We will prepare your financial and tax reports, manage your payroll and prepare an audit, if needed, as well as prepare and submit VAT reports.
Current legislation requires all companies to prepare and submit their financial accounts, except for Scottish partnerships that don’t have to do it if they are not active in the UK. However, SLPs still have to submit their tax reports, even nil ones.
Financial accounts shall be filed with the Companies House within 9 months from the end of the company’s financial year. The same deadline applies to paying of Corporation Tax. Tax reports shall be submitted to the HMRC within 12 months from the end of the company’s financial year.
Our accountants will prepare financial and tax reports for your company and help with tax optimisation.
Small UK busuinesses are not usually required to conduct an audit.
According to the Companies Act 2006, a company qualifies as small if it meets the following conditions:
- In a year, that started before the 1st of January 2016, in which it satisfies two or more of the following requirements:
- Turnover not more than £6.5 million
- Balance sheet total not more than £3.26 million
- Number of employees not more than 50
- In a year, that started after the 1st of January 2016, in which it satisfies two or more of the following requirements:
- Turnover not more than £10.2 million
- Balance sheet total not more than £5.1 million
- Number of employees not more than 50
Besides, some charity businesses and some subsidiaries that are part of a group are exempt from audit. Please contact our specialists for more information.
There are sometimes cases when a company is subject to audit for other reasons, for example when it is subject to public sector audit, when it is requested to do so or for the purpose of procuring finances from a bank.
Our specialists will advise whether you need to do an audit and help you to conduct it.
A company must register for VAT if its VAT taxable turnover is more than £85,000 (the ‘threshold’) in a 12-month period.
You can register voluntarily in most cases if your goods or services are not ‘out of scope’.
You usually submit a VAT Return every 3 months. You have 1 month and 7 days from the end of the accounting period to prepare and submit a quarterly report.
You have to remember that certain duties come with VAT registration:
- levy the right VAT on your customers
- pay required VAT to the HMRC
- submit VAT reports
- keep VAT records and reports in order
Our specialists will VAT register your company, prepare and submit your VAT returns.
Payroll and PAYE
All UK companies paying salary to their employees in any form must be registered with the HMRC as an employer to operate PAYE. This is an online service that allows to:
- send payroll reports to HMRC online
- access tax codes and notices about your employees
- appeal a penalty
- get alerts from HMRC when you report late or don’t send the right reports
You must register for PAYE before the first payday. It can take up to 6 weeks. You can’t register more than 2 months before you start paying people.
Upon registration, an employer must file online reports on time and pay taxes on their employees and make National Insurance contributions for themselves by the 22nd (or the 19th if paying by post) of the month following the reporting tax month.
Please note that even when a company has only one director and he is on payroll (no dividends), the company still has to be registered as an employer.
Besides, if you have household staff (gardener, driver, baby-sitter, etc.) and you pay them, you also have to be registered with the HMRC as an employer and use payroll system.
Specialists in Imperial & Legal will take care of all the payroll issues and prepare pay slips for your employees.
To discuss your requirements, please contact our specialists or call us on +44 (0)203 490 41 21.