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Do I Need to Inform HMRC that I Have Formed a New Limited Company?

Posted 11 Sep 16

As a company owner you will need to be aware of the existence of two government bodies: HMRC and Companies House. Both of them fulfil different functions and towards each you will have a number of responsibilities.

Although as your company grows bigger, it will be more difficult to take care of all the administration work required from you, the first steps of starting a new limited company are quite straightforward.

As a company director, you will only need to inform Companies House about your newly incorporated business. Companies House will then forward the information on to HMRC, including your registered office address. At this address you will then receive a letter from HMRC containing the Unique Taxpayer Reference (UTR) of your company as well as form CT41G (Corporation Tax - Information for New Companies).

Once you receive the Unique Taxpayer Reference, you will need to get in touch with HMRC sending the official information required to register with HMRC for business tax. The form CT41G contains all information your company needs to become active, including when and how to enrol for business taxes, and what documents you need to provide HMRC with.

Registering your business for Corporation Tax with HMRC

As a company director, you will be responsible for managing the tax on all business income. A company is regarded as trading for corporation tax reasons when:

Goods and services are purchased and sold with the aim of making profit or excess
It proceeds with any professional business or trading activity
Interest is received
Income/revenue is received
Workers are employed

If you perform all of these activities, you will need to register your business with HMRC for tax purposes, either in writing or online, within 3 months of commencing any business activity. If you register online, your company will automatically be incorporated for corporation tax online.

With the information you provide, HMRC will determine your corporation tax accounting period. You will be provided with an Activation Code (or PIN) at your registered office address within 7 days of your registration being confirmed by HMRC. You must activate your online services once you get the code.

Filing company tax return

The majority of limited companies hire a professional accountant to manage their business taxes. That way they fully benefit from the structure that is a limited company. A lot of expenses you make as a business can be deduced off your tax, however, the regulations as to which once are often ambiguous. The simplest way to avoid any confusion is by letting a friendly and experience accountant, like our experts at Tawanda Accountants, take care of your taxes for you. We are highly experienced in the laws and regulations guiding the management of small business’ taxes and bookkeeping and we provide help and guidance to a vast amount of clients from a large number of industries. If you would like to find out how we can help you better your business, contact us today at Tawanda Accountants.

SIC Codes

One of the pieces of information you will need to provide when forming a company is your SIC code (Standard industrial classification of economic activities). This UK SIC code list will help you find the most appropriate one for your business.