How to Set Up a Limited Company in the UK and What Legal Reporting Obligations You Have with HMRC and Companies House!
A Practical Guide for Entrepreneurs, Contractors, Subcontractors, Freelancers, Consultants and Small Businesses in the UK
Setting up a Limited Company — often referred to as an LTD — in the UK is a relatively straightforward process. A company can be incorporated at Companies House, receive a company number, Certificate of Incorporation, registered office, director details, shareholder details and SIC code.
However, setting up the company is only the first step.
The real question is:
What legal, tax and administrative obligations arise after the company has been incorporated?
Many entrepreneurs register a Limited Company, receive the Certificate of Incorporation, open a business bank account and assume that everything is complete. In reality, a Limited Company comes with clear responsibilities towards two main institutions:
Companies House — for the legal existence and statutory records of the company, including directors, shareholders, PSCs, registered office, annual accounts and Confirmation Statement.
HMRC — for Corporation Tax, Company Tax Return — CT600, VAT, PAYE, CIS, payroll taxes and other tax obligations.
A Limited Company is a separate legal entity. This means that the company has its own assets, its own bank account, its own tax records, its own filing deadlines and its own legal responsibilities.
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Executive Summary
If you want to set up a Limited Company in the UK, you need to understand two separate stages.
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Stage 1: Incorporating the Company at Companies House
This stage includes:
choosing the company name;
checking whether the name is available;
choosing the registered office address;
choosing the registered email address;
appointing the director or directors;
appointing a company secretary, if required — optional;
deciding who the shareholders will be;
choosing the share structure;
identifying the PSCs — Persons with Significant Control;
selecting the correct SIC code;
submitting the incorporation application.
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Stage 2: Managing the Company After Incorporation
Once the company exists, the compliance obligations begin. These may include:
opening a business bank account;
receiving the Corporation Tax UTR from HMRC;
setting up Government Gateway / Business Tax Account access;
registering for Corporation Tax when the company becomes active;
registering for PAYE if salaries are paid;
registering as a CIS Subcontractor if the company is paid under CIS;
registering as a CIS Contractor if the company pays subcontractors;
registering for VAT if required, or voluntarily where it makes commercial sense;
keeping bookkeeping records from day one;
filing annual accounts;
filing the Company Tax Return — CT600;
paying Corporation Tax;
filing the Confirmation Statement;
keeping director, shareholder, PSC and company records up to date.
The practical rule is simple:
Incorporating a Limited Company is only the beginning. Correct administration, bookkeeping and timely reporting are what protect the company, the director and the tax position.
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1. What Is a Limited Company — LTD?
A Limited Company is a business structure that is legally separate from the people who own or manage it.
If you are the director and shareholder, the company is not the same legal person as you. The company has its own rights and obligations.
This means that:
the company’s money belongs to the company;
the director manages the company but does not personally own the money in the company bank account;
company profits are subject to Corporation Tax;
the director may receive money through salary, dividends, reimbursed expenses, loan repayments or other legal methods;
the company must file documents with Companies House;
the company must meet its tax obligations with HMRC.
In simple terms:
The company’s money is not automatically the director’s personal money.
From a legal and accounting perspective, there must be a clear separation between the personal finances of the director and the finances of the company.
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2. LTD vs Sole Trader
As a sole trader, the individual and the business activity are directly connected. The profit is declared through Self Assessment, and the individual pays Income Tax and National Insurance on the business profit.
With a Limited Company, the company is a separate legal entity. The profit belongs to the company until it is extracted through a correct method, such as:
salary;
dividends;
reimbursed business expenses;
director’s loan repayment;
pension contributions;
or other legitimate company payments.
A Limited Company can offer more structure, commercial credibility and planning flexibility, but it also comes with additional responsibilities.
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3. When Can a Limited Company Make Sense?
A Limited Company may be suitable where:
the business is generating or expects to generate higher profits;
the owner wants a legal separation between personal finances and business activity;
clients require the contractor or supplier to operate through a Limited Company;
the business needs a more professional commercial image;
there is a need for flexibility between salary, dividends and retained profits;
the owner wants to reinvest profits inside the company;
there may be future shareholders, investors or business partners;
the activity has growth potential;
the business owner wants limited liability protection, subject to the law.
A Limited Company can be a very effective structure, but it must be set up and managed correctly.
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4. When Should a Limited Company Be Considered Carefully?
A Limited Company may not always be the best option.
It should be considered carefully if:
the profit is low;
the business activity is simple;
the company will have very little activity;
the director needs to withdraw all money immediately;
the administration costs are too high compared with the income;
the person does not want to keep formal records;
there is a risk of IR35 applying to the contracts;
the owner is not prepared to deal with Companies House and HMRC obligations.
A Limited Company should be chosen for genuine commercial, legal and tax reasons — not only because it sounds more professional.
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5. What You Need to Prepare Before Setting Up a Limited Company
Before you submit the incorporation application, it is important to prepare the key details.
5.1 Company Name
You must choose a company name and check whether it is available at Companies House.
The name should not be the same as, or too similar to, an existing company name. Some words are considered sensitive and may require additional approval.
Examples of sensitive words may include terms such as:
Royal;
Bank;
Insurance;
Trust;
Association;
Authority;
Institute.
A simple and clear name is usually better than an overly complicated or confusing one.
Example:
Clear name: ABC Construction Services Ltd
Potential issue: ABC Construction Servicez Ltd, if it is too similar to another company
May need additional checks: ABC Royal Trust Ltd
5.2 Registered Office Address
Every Limited Company must have a registered office address.
This is the official address of the company and is used by Companies House, HMRC and other official organisations for correspondence.
Important points:
the registered office appears on the public Companies House register;
it must be an address where official post can be received;
it can be the director’s home address, but this will make the address public;
it can be the accountant’s office or a registered office provider;
post received at this address must be checked regularly.
If official letters are ignored or missed, the company may miss important deadlines, reminders, penalties or compliance notices.
5.3 Registered Email Address
A company must also have a registered email address.
This is used by Companies House for official communication. It is not shown publicly, but it must be active and monitored.
Practical recommendations:
use a professional email address;
do not use an email address you may lose access to;
do not use an email address belonging to someone who may leave the business;
check the inbox regularly;
update the email address if it changes.
5.4 Director or Directors
A private Limited Company must have at least one director.
The director is legally responsible for managing the company and ensuring that the company meets its statutory and tax obligations.
The director’s responsibilities include:
keeping proper accounting records;
ensuring accounts are filed with Companies House;
ensuring the Confirmation Statement is filed;
making sure tax returns are submitted to HMRC;
ensuring taxes are paid on time;
keeping company information up to date;
avoiding unexplained withdrawals from the company;
acting in the best interests of the company.
An accountant can help, but the legal responsibility remains with the director.
5.5 Company Secretary — Optional
For a private Limited Company in the UK, a company secretary is optional.
Some companies choose to appoint a company secretary for administrative reasons, especially where another person will help with company records, filings, governance or correspondence.
A company secretary may assist with:
company records;
Companies House filings;
statutory registers;
minutes and resolutions;
administrative company matters.
However, for many small owner-managed companies, a company secretary is not required.
5.6 Shareholder or Shareholders
The shareholder is the person who owns shares in the company.
In many small companies, the same person is both the director and the sole shareholder.
Example:
The company has 100 ordinary shares of £1 each.
The director owns all 100 shares.
The director owns 100% of the company.
If the company has distributable profits, dividends may be paid to the shareholder, subject to the correct legal and tax treatment.
If there is more than one shareholder, dividends and ownership rights must follow the share structure and the rights attached to the shares.
5.7 Share Structure
For many small companies, a simple share structure is enough.
A common structure may be:
100 ordinary shares of £1 each;
one shareholder or two shareholders;
equal rights attached to the shares.
More complex share structures, such as alphabet shares or different share classes, can be useful in certain situations, but they must be created carefully.
They may affect:
dividend rights;
voting rights;
control of the company;
tax treatment;
future transfers of shares.
For most small businesses, a simple structure is usually the best starting point unless there is a specific reason to do otherwise.
5.8 PSC — Person with Significant Control
PSC means Person with Significant Control.
A person will usually be a PSC if they:
hold more than 25% of the shares;
hold more than 25% of the voting rights;
have the right to appoint or remove the majority of directors;
or otherwise exercise significant influence or control over the company.
For a simple company with one director and one shareholder who owns 100% of the shares, that person will usually also be the PSC.
Companies House requires PSC information to be reported and kept up to date.
5.9 SIC Code
The SIC code describes the company’s business activity.
Examples of business activities include:
construction;
cleaning;
IT consultancy;
transport;
e-commerce;
business consultancy;
property management;
engineering;
marketing services.
You can select more than one SIC code, but it is best to use only the codes that are relevant to the company’s real or intended activity.
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6. DIY, Accountant or Formation Agent?
There are three practical ways to set up a Limited Company.
Option 1: Do It Yourself
You can set up the company yourself directly through Companies House.
This may work if you are confident about:
the company name;
registered office;
registered email;
directors;
shareholders;
PSC;
share structure;
SIC code;
the company’s intended activity.
This can be a fast and low-cost option, but mistakes at the setup stage can create problems later.
Option 2: Use a Formation Agent
A formation agent is a company that specialises in setting up companies.
This can be useful where you want the incorporation process handled quickly and efficiently.
However, a formation agent may not always provide tax advice, bookkeeping advice, payroll advice, VAT advice or long-term compliance support.
Option 3: Use an Accountant
An accountant can help not only with incorporation, but also with the structure and the next steps after the company is formed.
This may include:
choosing the right SIC code;
checking the share structure;
Corporation Tax registration;
PAYE setup;
CIS registration;
VAT registration;
bookkeeping setup;
payroll;
accounts;
CT600;
Confirmation Statement;
director Self Assessment.
This can be more suitable if you want the company set up correctly from day one and managed properly afterwards.
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7. How to Incorporate the Company at Companies House
A Limited Company is incorporated at Companies House.
In practice, this can be done:
directly online through Companies House;
through an accountant;
through a formation agent;
through specialist company formation software.
During the incorporation process, you provide details about:
the company name;
registered office;
registered email;
director or directors;
company secretary, if appointed;
shareholder or shareholders;
share structure;
PSC;
SIC code;
articles of association.
Once the company is approved, you receive:
Certificate of Incorporation;
company number;
date of incorporation;
registered office details;
director details;
shareholder details;
SIC code details.
These details are then used for the business bank account, contracts, tax registrations, insurance, bookkeeping and future company administration.
Companies House Incorporation Fee
The digital incorporation fee at Companies House is £100.
This is the official Companies House fee for setting up a company online. Paper filings or other services may cost more.
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8. What to Do Immediately After Incorporation
After the company is incorporated, the next stage begins.
This is where many directors make mistakes. They assume that the company is complete once the Certificate of Incorporation has been issued.
In reality, the company must now be set up properly for banking, tax and bookkeeping.
8.1 Open a Business Bank Account
A Limited Company should have a separate business bank account.
This is important because:
it separates company money from personal money;
it makes bookkeeping easier;
it reduces confusion between personal and business spending;
it helps calculate profit correctly;
it protects the director if HMRC asks questions;
it keeps the company’s financial records cleaner.
Common mistakes include:
using a personal bank account for company income;
paying personal expenses from the company account;
withdrawing cash without explanation;
transferring money to the director without classifying it correctly;
paying subcontractors from personal funds;
not tracking the Director’s Loan Account.
A simple rule:
All company income should go into the business account, and all company spending should be recorded properly.
8.2 Receive the Corporation Tax UTR
HMRC usually sends the Corporation Tax Unique Taxpayer Reference — UTR — by post to the company’s registered office.
The UTR is important for:
Corporation Tax registration;
Company Tax Return — CT600;
Corporation Tax payments;
communication with HMRC.
This is why the registered office must be monitored carefully.
8.3 Activate Government Gateway / Business Tax Account
The company may need access to HMRC online services.
Depending on the activity, this may include:
Corporation Tax;
VAT;
PAYE;
CIS;
Making Tax Digital for VAT;
other business tax services.
Government Gateway access should be kept secure and organised.
8.4 Register for Corporation Tax When the Company Becomes Active
If the company starts trading or becomes active, HMRC must be informed.
A company may become active when it:
starts selling goods or services;
issues invoices;
buys goods or services for the business;
advertises the business;
hires staff;
receives income;
starts carrying out business activities.
If the company has no activity, it may be dormant for Corporation Tax purposes, but this still needs to be handled correctly.
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9. Additional HMRC Registrations
Not every company needs every HMRC registration.
The correct registrations depend on the business activity, turnover, staff, subcontractors and whether VAT applies.
9.1 Corporation Tax
A trading Limited Company must deal with Corporation Tax.
This includes:
keeping accounting records;
preparing company accounts;
calculating taxable profit;
filing the Company Tax Return — CT600;
paying Corporation Tax on time.
Corporation Tax is one of the main obligations of an active Limited Company.
9.2 PAYE Registration
If the company pays salaries to the director or employees, it may need to register as an employer for PAYE.
PAYE may involve:
payroll software;
employee records;
FPS submissions;
EPS submissions, where required;
payslips;
P60;
P45, if someone leaves;
auto-enrolment pension assessment.
It is not enough to simply transfer money from the company account and label it “salary”. Salary must be processed correctly through payroll.
9.3 CIS Subcontractor Registration
If the company works in the construction industry and is paid under the Construction Industry Scheme, it may need to register as a CIS Subcontractor.
This helps ensure that the correct deduction rate is applied.
In many standard CIS subcontractor situations, the contractor deducts 20% from labour payments and pays this to HMRC.
CIS deductions are not the final tax liability. They are payments on account that are later reconciled through the company’s tax position.
9.4 CIS Contractor Registration
If the company pays subcontractors for construction work, it may need to register as a CIS Contractor.
A CIS Contractor may need to:
verify subcontractors;
deduct 20% or 30%, depending on the subcontractor’s status;
submit monthly CIS Returns;
provide CIS statements to subcontractors;
pay CIS deductions to HMRC.
This is a common area where construction companies make mistakes.
9.5 VAT Registration
VAT registration may be compulsory or voluntary.
A company must register for VAT if its taxable turnover exceeds the VAT registration threshold.
VAT can also be voluntary in some cases, especially where the company mainly works with VAT-registered businesses or has significant input VAT to reclaim.
VAT registration should be considered carefully because it affects:
pricing;
cash flow;
invoices;
VAT Returns;
Making Tax Digital requirements;
bookkeeping processes.
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10. Bookkeeping From Day One
Bookkeeping should start from the first day of trading.
It should not be left until the end of the year.
The company should keep:
sales invoices;
purchase invoices;
receipts;
bank statements;
supplier bills;
contracts;
mileage logs;
payroll records;
VAT records, if VAT registered;
CIS statements, if relevant;
loan agreements;
dividend vouchers;
board minutes.
Good bookkeeping allows the company to understand:
profit;
cash flow;
Corporation Tax estimate;
VAT position;
PAYE liabilities;
CIS deductions;
Director’s Loan Account balance;
dividend capacity.
A company with poor records is more likely to make tax mistakes, miss deadlines or withdraw money incorrectly.
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11. Companies House vs HMRC — What Is the Difference?
One of the most common mistakes is treating Companies House and HMRC as if they are the same organisation.
They are not.
Companies House
Companies House deals with the legal and statutory side of the company.
It is concerned with:
company registration;
company name;
registered office;
registered email;
directors;
company secretary, if appointed;
shareholders;
PSC;
share capital;
annual accounts;
Confirmation Statement;
company registers;
identity verification.
HMRC
HMRC deals with tax.
It is concerned with:
Corporation Tax;
Company Tax Return — CT600;
VAT;
PAYE;
CIS;
payroll taxes;
tax payments;
tax enquiries;
penalties and interest.
Practical examples:
You can be up to date with Companies House but still have an overdue CT600 with HMRC.
You can be dormant for Corporation Tax but still need to file a Confirmation Statement at Companies House.
You can have no sales, but if you are VAT registered, HMRC may still expect VAT Returns.
You can update the director at Companies House, but payroll and PAYE still need to be dealt with separately.
The key point is:
Companies House confirms the company’s legal existence and statutory information. HMRC deals with the company’s tax position. A Limited Company must remain compliant with both.
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12. Main Companies House Obligations
12.1 Annual Accounts
Every Limited Company must file accounts with Companies House, including small companies and dormant companies.
For the first accounts, the deadline is usually 21 months from the date of incorporation.
For later accounts, the deadline is usually 9 months after the company’s financial year end.
Example:
The company is incorporated on 10 June 2026.
The first accounting reference date is usually 30 June 2027.
The first accounts are usually due by 10 March 2028.
After that, if the year end remains 30 June, the accounts are usually due by 31 March each year.
12.2 Confirmation Statement
The Confirmation Statement confirms that the information held by Companies House is correct.
It must be filed at least once a year, even if nothing has changed.
It confirms or updates details such as:
registered office;
registered email;
directors;
company secretary, if appointed;
shareholders;
share capital;
PSC;
SIC codes;
lawful purpose statement.
The Confirmation Statement is not the same as annual accounts. They are separate obligations.
12.3 Registered Office Updates
If the registered office changes, Companies House must be updated.
It is not enough to update the address with the bank, HMRC or clients.
12.4 Director Changes
Companies House must be updated if:
a new director is appointed;
a director resigns;
director details change;
the service address changes;
incorrect information needs correcting.
12.5 Shareholder and Share Structure Changes
If shares are transferred, new shares are issued or the share capital changes, proper records must be kept.
Relevant documents may include:
stock transfer form;
board minutes;
share certificates;
updated register of members;
Confirmation Statement updates, where applicable.
12.6 PSC Changes
If the person with significant control changes, or the nature of control changes, Companies House must be updated.
Examples include:
a shareholder receives more than 25% of the shares;
an investor joins the company;
a spouse receives shares;
voting rights change;
a PSC leaves the company.
12.7 Statutory Registers
The company should keep statutory records, including:
register of members;
register of directors;
PSC register;
share certificates;
stock transfer forms;
articles of association;
minutes and resolutions.
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13. Companies House Identity Verification
Companies House has introduced stronger identity verification requirements.
Directors and PSCs must verify their identity and use their Companies House personal code to connect the verified identity to their roles.
Identity verification can be completed:
directly through GOV.UK One Login;
or through an Authorised Corporate Service Provider — ACSP.
After the identity is verified, the person receives a Companies House personal code.
If the same person is both director and PSC, the identity is verified once, but the personal code must be linked correctly to each relevant role.
This is now an important part of company compliance.
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14. Main HMRC Obligations
14.1 Company Tax Return — CT600
An active Limited Company must prepare accounts and file a Company Tax Return — CT600.
Important deadlines:
Corporation Tax is usually paid 9 months and 1 day after the end of the accounting period.
The CT600 is usually filed 12 months after the end of the accounting period.
Example:
Year end: 31 March 2027
Corporation Tax payment deadline: 1 January 2028
CT600 filing deadline: 31 March 2028
This means the Corporation Tax payment deadline usually comes before the CT600 filing deadline.
The company should calculate the tax liability early and keep a tax reserve.
14.2 Corporation Tax Rates
Corporation Tax applies to company profits.
The company’s profit is not the same as the balance in the bank account.
Important points:
dividends do not reduce Corporation Tax;
expenses must be genuine business expenses;
poor records can lead to incorrect tax calculations;
associated companies may affect tax thresholds and calculations;
Corporation Tax planning should be done before money is withdrawn.
14.3 VAT Returns
If the company is VAT registered, it must submit VAT Returns.
VAT responsibilities may include:
issuing VAT invoices;
charging VAT correctly;
reclaiming input VAT where allowed;
keeping digital records;
submitting VAT Returns;
paying VAT to HMRC;
complying with Making Tax Digital rules.
VAT must be managed carefully because it affects pricing, bookkeeping and cash flow.
14.4 PAYE and Payroll
If the company pays salaries, PAYE must be managed correctly.
This may include:
director salary;
employee salary;
Real Time Information submissions;
payslips;
P60;
P45;
National Insurance;
PAYE tax;
employer obligations;
pension auto-enrolment assessment.
Payroll must be processed before or on the relevant payday, not reconstructed casually at the end of the year.
14.5 CIS Returns
If the company is registered as a CIS Contractor, monthly CIS Returns may be required.
The company must:
verify subcontractors;
apply the correct deduction rate;
issue CIS statements;
submit CIS Returns;
pay deductions to HMRC.
CIS compliance is especially important for construction companies.
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15. Monthly, Quarterly and Annual Obligations
15.1 Monthly Obligations
Monthly tasks may include:
bookkeeping;
bank reconciliation;
recording invoices and receipts;
payroll submissions;
CIS Returns, where applicable;
Director’s Loan Account review;
VAT threshold review;
tax reserve planning.
15.2 Quarterly Obligations
Quarterly tasks may include:
VAT Returns, if VAT registered;
profit review;
cash-flow review;
checking documents and receipts;
updating tax estimates;
reviewing whether VAT, PAYE or CIS obligations have changed.
15.3 Annual Obligations
Annual tasks may include:
annual accounts;
Company Tax Return — CT600;
Corporation Tax payment;
Confirmation Statement;
payroll year-end;
P60;
dividend review;
director Self Assessment, where applicable;
review of VAT, PAYE and CIS position.
A well-managed Limited Company is monitored regularly, not only at the end of the year.
16. Common Mistakes When Setting Up and Running a Limited Company
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Mistake 1: Thinking the Company Is Finished Once Incorporated
Incorporation is only the start. Banking, HMRC setup, bookkeeping and future filings still need to be managed.
Mistake 2: Using a Personal Bank Account
Company income should not be mixed with personal money. A separate business bank account is essential.
Mistake 3: Ignoring Corporation Tax Registration
If the company becomes active, HMRC must be informed and Corporation Tax must be dealt with correctly.
Mistake 4: Not Registering for PAYE When Salaries Are Paid
A bank transfer marked as “salary” is not enough. Payroll must be processed correctly.
Mistake 5: Confusing CIS Subcontractor and CIS Contractor
A company can be a CIS Subcontractor, a CIS Contractor, or both. The role depends on whether the company is paid under CIS, pays subcontractors, or both.
Mistake 6: Missing the VAT Threshold
The VAT threshold must be monitored on a rolling 12-month basis, not only at the financial year end.
Mistake 7: Leaving Bookkeeping Until the End of the Year
Late bookkeeping leads to poor decisions, missed deadlines and inaccurate tax planning.
Mistake 8: Paying Dividends Without Checking Profit
Dividends should only be paid from available distributable profits and should be documented properly.
Mistake 9: Ignoring the Director’s Loan Account
Unexplained withdrawals from the company can create an overdrawn Director’s Loan Account and potential tax issues.
Mistake 10: Missing Companies House Filings
Annual accounts and Confirmation Statements are separate filings and both must be managed.
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17. Practical Checklist for Setting Up a Limited Company
Before incorporation:
choose the company name;
check name availability at Companies House;
choose the registered office;
choose the registered email;
appoint the director or directors;
decide whether to appoint a company secretary;
choose the shareholder or shareholders;
choose the share structure;
identify the PSC;
choose the SIC code;
prepare personal details for the director, shareholder and PSC.
During incorporation:
submit the application to Companies House;
pay the incorporation fee;
receive the Certificate of Incorporation;
receive the company number.
After incorporation:
open a business bank account;
receive the Corporation Tax UTR;
activate Government Gateway / Business Tax Account;
register for Corporation Tax when active;
register for PAYE if salaries are paid;
register as CIS Subcontractor if paid under CIS;
register as CIS Contractor if paying subcontractors;
register for VAT if compulsory or voluntarily where appropriate;
set up bookkeeping from day one;
keep invoices, receipts, bank statements and contracts;
monitor monthly, quarterly and annual obligations.
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18. Can You Do Everything Yourself?
Yes, some directors manage everything themselves.
You can:
set up the company yourself;
register for HMRC services yourself;
do your own bookkeeping;
manage VAT Returns;
run payroll;
file accounts;
file CT600;
file the Confirmation Statement.
However, this requires time, knowledge and attention to detail.
The risk is that mistakes may only become visible later, when HMRC or Companies House sends a notice, penalty or enquiry.
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19. When Is It Better to Use an Accountant?
Using an accountant may be more suitable if:
you are unsure about the company structure;
you need help choosing the correct SIC code;
you want help with Corporation Tax registration;
you need PAYE, CIS or VAT setup;
you work in construction;
you are VAT registered;
you want monthly bookkeeping;
you want payroll support;
you want annual accounts and CT600 handled correctly;
you want help avoiding penalties and missed deadlines.
An accountant can help set up the company properly and support ongoing compliance.
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20. How DCTaxAgent Ltd Can Help
DCTaxAgent Ltd helps entrepreneurs, contractors, subcontractors, directors and small businesses in the UK with Limited Company setup and compliance.
We can assist with:
Limited Company incorporation;
Companies House setup;
SIC code guidance;
registered office guidance;
Corporation Tax registration;
Government Gateway / Business Tax Account guidance;
PAYE registration;
CIS Subcontractor registration;
CIS Contractor registration;
VAT registration;
bookkeeping setup;
monthly bookkeeping;
bank reconciliation;
payroll for directors and employees;
VAT Returns;
CIS Returns;
annual accounts;
Company Tax Return — CT600;
Confirmation Statement;
Companies House identity verification support through ACSP, where applicable;
Director’s Loan Account review;
salary and dividend planning;
director Self Assessment.
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21. Conclusion
Setting up a Limited Company in the UK can be quick and straightforward.
Managing it correctly is the part that matters most.
A Limited Company can offer flexibility, commercial credibility, legal separation and growth opportunities. However, it also comes with clear obligations:
Companies House filings;
HMRC tax registrations;
Corporation Tax;
CT600;
VAT, where applicable;
PAYE, where salaries are paid;
CIS, where construction activity applies;
bookkeeping;
identity verification;
statutory records;
monthly, quarterly and annual deadlines.
The golden rule is:
Do not set up a Limited Company just to have a company. Set it up correctly, understand the obligations and manage it properly from day one.
A well-managed Limited Company can support business growth.
A poorly managed Limited Company can create penalties, tax problems and unnecessary stress.
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Disclaimer
This article is for general information and educational purposes only. It does not constitute personalised tax advice, legal advice, financial advice or audit advice.
The exact obligations of a Limited Company depend on its business activity, turnover, profit, VAT position, PAYE, CIS, directors, shareholders, PSCs, contracts, IR35 position and other specific circumstances.
DCTaxAgent Ltd accepts no responsibility for decisions made solely based on this article without professional advice. For tailored guidance, speak to a qualified accountant, tax adviser or legal professional.