Rules and responsibilities of a director
There are a number of functions that should be observed when you are running your own limited company. In this section we provide information on key elements such as a directors role, company accounting and annual returns.
One of the key considerations when running your own limited company is fulfilling the role of director. Understanding your duties and responsibilities as a director is essential. There are a range of statutory obligations you must follow.
Following a change in the law concerning Company Secretaries in April 2008, it is no longer necessary to have a named company secretary.
Your company is legally obliged to keep company accounts. These financial accounts must be kept for at least six years and must be summarised in a compulsory format. These are known as your statutory accounts and must show a true and fair view of your company.
A copy of these statutory accounts must be submitted after your year end to Companies House (no later than nine months after the end of the accounting period or twenty one months from the date of incorporation, whichever is the earlier).
Of course, there is also an obligation to submit corporation tax returns to HMRC and settle the corporation tax liabilities of your company. Corporation tax must be paid nine months after the end of the accounting period and the corporation tax return will require submitting twelve months after the end of the accounting period at the latest.
If you wish to cease trading and close your limited company there are certain procedures and regulations you should observe in producing cessation accounts. We have a process to guide you through this, but you should make an informed decision when choosing to close your company.
If you would like to make your company dormant so it is still available at a future date or simply protects a name or some intellectual property, you need to produce a set of dormant company accounts.
Annual Returns For Limited Companies
One of your principle responsibilities as a director of your limited company is to submit an annual return to Companies House within 28 days of the anniversary of its incorporation.
You should understand how and when an annual return is to be filed. The annual return discloses directors details and company shareholding information as at the date of the return.
If there have been any changes and the information is incorrect, then the annual return will require amending. If there are no amendments, then confirmation of the information held at Companies House or confirming that the information is correctly held a Companies House this is normally performed online on the Companies House website.
We can of course discuss all of the above with you in detail including how best to draw money out of your Limited Company; as this in itself is not straightforward and certain rules must be followed in relation to salary and dividends taken.