Understanding your company director responsibilities
If you’ve decided to work through a Limited Company, you’ll become a Director. Your Limited Company is a legal entity in its own right. Its finances and assets are separate from your personal affairs. This means you’ll have a new set of company director responsibilities.
At Boox, we’ll help you take care of these new duties by doing a lot of the work for you, but it’s important you understand what will be expected of you.
Some of your initial Director Responsibilities
These include legal obligations to Companies House and HMRC over and above those relating to your income as an employee of the company.
Your responsibilities to Companies House
Your company director responsibilities to Companies House are to send in an Annual Return and your annual Accounts.
Annual return – form AR01
This provides basic information about your company, such as your directors and company secretary (if you have one), each shareholder, share capital and the registered office address.
It costs £40.00 to file a paper return or £13.00 if you do it online. You must send your first annual return 12 months after incorporating your company, then within 28 days of every anniversary. You can be fined – or even prosecuted if you miss the deadline.
Companies House will make your annual accounts publicly available. These should be filed within nine months of the anniversary of the incorporation of your company. You may be allowed to file ‘abbreviated accounts’ – a simplified version available to small businesses.
There’s no fee for filing accounts, but there are penalties for late submissions. And they get worse of if you’re late more than once.
Your responsibilities to HM Revenue & Customs
HMRC collect your Companies Tax and National Insurance contributions on a quarterly or annual basis.
HMRC requires you to register for corporation tax within three months of when you start trading. Then, you must complete a corporation tax return online for each year you are trading.
PAYE, NI & VAT
As a director, you’ll also have responsibilities relating to PAYE and national insurance (if you employ people) and VAT if choose to register your company for VAT.
Whether you’ve already set up your limited company, or are just looking for some initial information on your choices for running a business, you can download our free guide to Director Responsibilities by clicking below.