What Responsibilities and Duties Does a Company Director Have?
Posted 26 Nov 15
Once your company is formed and registered with HMRC and Companies House, you will be required to fulfil a number of duties and obligations in order to keep your business active.
However, it is important to remember that even if your company goes dormant, you will still be a subject to some of those responsibilities. In order to find out more about the differences in running an active and dormant company, contact our experts at Tawanda Accountants.
The duties of a company director can be divided into two types: those towards HMRC and Companies House and those towards the company itself.
There are seven main duties you will need to fulfil in regards to your company and they include:
duty to act within your powers as a company director
duty to promote the success of your company
duty to exercise independent judgment
duty to exercise reasonable care, skill and diligence
duty to avoid conflicts of interest
duty not to accept benefits from third parties
duty to declare interest in proposed transaction or arrangement with the company
You will learn about most of your responsibilities towards HMRC and Companies House shortly after company formation. The general duties of a company director include:
Filing annual returns and annual accounts with Companies House
Informing Companies House about changes to company details
Paying corporation tax and filing Company Tax Returns and annual accounts with HMRC
Dealing with the correct payment of staff (and yourself), including the deduction of income tax and national insurance contributions, where they apply
Trading while ensuring that you are able to meet the financial liabilities of your business
Since carrying so many responsibilities can be overwhelming, especially for a young business owner, we recommend you hire a professional and qualified accountant to take the burden of the exhaustive and often complex paperwork off you.
At Tawanda Accountants we take care of all of the accounting and bookkeeping tasks and ensure all the documents you need to file to HMRC and Companies House are kept safe, up-to-date and ready for investigation at any time. It is crucial for the success of your company to always keep good company records.
Not only is it a legal requirement, but keeping track of your company’s accounts will allow you to better plan your the financial decisions which can develop your business.