Each and every private limited company is legally obliged to prepare company accounts that comply with Companies Act and UK Accounting Standards. The normal filing date for accounts with companies’ house is 9 months and 1 day after the company year-end.
Types of company
There are different types of company:
- Company limited by shares.
- Unlimited company.
- Company limited by guarantee.
Most individuals choose to form a company limited by shares to take advantage of the protection they offer its shareholders
Other considerations for limited companies
Liability of members: In theory members of a company should have no liability for the companies debts this is because the company is considered to be a separate legal entity. However, this is often dependant on the type of company concerned. The company itself as a separate legal entity is liable without any limits to any debts it may have incurred.
Perpetual succession: A company can carry on indefinitely. This is despite changes in membership. A company will continue to run until it is terminated in the correct legal manner.
Ownership of property: A point often overlooked by directors and shareholders is that a company has the right to own its own property and this property belongs to the company and not an individual member or director. Any appropriation or use of property can have adverse and unexpected tax consequences.
Litigation: As a separate legal entity it is worth noting a company can sue and be sued hence it is always advisable for businesses to obtain the correct business insurance when setting up trade.
Taxation: As a separate legal entity the company is liable to corporation tax in its own right. Corporation tax returns are normally filed on forms CT600 and are generally due 12 months after the companies year end which is different from when the accounts are due to be submitted at companies house.
Contractual capacity: A company can enter into contracts via its directors who act as agents of the company and have the power to bind the company legally.
At Emulous Accounting, we can help by:
- Preparing statutory accounts from cash books, bank statements, trial balance, invoices, and expense claims
- Providing advice on the accounting treatment of various transactions with full consideration of UK accounting standards
- Calculate of corporation tax with full consideration for all reliefs including capital allowances
- Submission of accounts with HMRC & companies house using HMRC or any other relevant software.
For more detailed information and to arrange a free consultation, please contact us.