Limited Companies.
Operating as a company brings with it a number of compliance obligations e.g. a company must file Annual Accounts and file a CT600 tax return. Our experienced team can take care of this whole process and help ensure that all your accounting and tax obligations are met.
Companies and directors have some additional
challenges when it comes to accounting and tax.
Directors of limited companies need to be aware of the various tax and accounting compliance obligations associated with operating a company. Meeting these obligations does not need to time consuming or expensive but they do need to be managed if penalties and to be avoided. Below are some of the main compliance issues facing company directors.
Annual accounts and confirmation statement.
Companies must prepare and file annual accounts with Companies House each year. This includes the balance sheet, profit and loss account, and notes to the accounts. A company must also make various other filings with Companies House e.g. an annual Confirmation Statement which confirms key company details.
Corporation tax.
Companies must file a corporation tax return (CT600) with HMRC for each appointing period. This details taxable profits and the amount of corporation tax due. This tax must be paid within 9 months and 1 day after the end of the company's accounting period. A company may qualify for certain reliefs e.g. a company engaged in research and development can claim R&D tax credits. Also deductions for certain capital expenditures is allowed via capital allowances e.g. on plant and machinery.
Dividends vs. salary.
Balancing the distribution of profits between dividends and salaries to optimise tax efficiency for directors and shareholders is an important decision and care is required to get this right.
VAT.
Companies (as do most businesses) must register for VAT if their taxable turnover exceeds the VAT threshold (£85,000 as of 2024). Typically, quarterly VAT returns must be filed with HMRC, detailing VAT collected and paid. Certain schemes may be available in order to simplify this reporting but these may not always be beneficial e.g. cash or annual scheme. Also, some industries have special schemes e.g. Tour Operators Margin Scheme.
Employment taxes.
A company with employees will also need to consider the correct calculation and timely payment of income tax and national insurance contributions for employees. Also care is required where employees receive any benefits-in-kind. These must also be taxed and reported.
Complexity in tax legislation.
Tax laws and regulations change frequently, requiring companies to stay informed about updates and amendments. Compliance with MTD requirements for VAT and, in the future, for corporation tax and income tax. This involves maintaining digital records and using approved software to submit tax returns.
Corporate governance.
Directors must ensure accurate record-keeping, legal compliance, and proper conduct of company affairs. Larger companies or those exceeding specific thresholds may require statutory audits, adding to the compliance burden. Maintaining healthy cash flow to meet tax obligations and operating expenses. Accurate financial planning to anticipate future tax liabilities and manage resources effectively.
Penalties and fines.
Companies face fines and interest charges for late filing of accounts, tax returns, and late payment of taxes. Failure to comply with various regulations can result in significant penalties and reputational damage.
"Boxwood have been our accountants for a number of years and provide us with advice and support. We have always found the team helpful and professional. They are always available to chat through any questions we may have and we no longer worry about getting our tax filed on time."
Peter at Curzon
Landscapes Ltd
Why not get some expert help with your accounting and tax?
You'll be surprised at how easy and affordable it is
to get the support you need.
We help our corporate clients by managing
the whole accounting & tax compliance burden.
From bookkeeping to financial statement preparation, we offer a full suite of tax and accounting services. Our goal is to streamline your accounting and tax processes, allowing you to focus on growing your business with peace of mind.
Compliance and reporting.
We can prepare and file your Annual Accounts and we help ensure accurate preparation which is compliant with UK accounting standards (FRS 102 or FRS 105). We help ensure timely filing with Companies House, avoiding penalties. We will also assist in preparing and filing the annual confirmation statement, ensuring all company details are accurate and up-to-date.
Corporation tax.
The team can prepare and file the corporation tax return (CT600) accurately, ensuring all taxable income and allowable expenses are correctly reported. We can calculate the corporation tax liability and ensure timely payment to avoid interest and penalties. We can also assist with advising on efficient tax planning strategies to minimise tax liabilities, such as timing of income and expenses, utilisation of losses, and capital allowances. We can also provide guidance on structuring director’s remuneration between salary and dividends to optimise tax efficiency.
VAT.
We can help determine if the company needs to register for VAT and handle the registration process with HMRC. We can prepare and file accurate quarterly VAT returns, ensuring correct VAT is charged and reclaimed and we can advise on the most suitable VAT scheme (if appropriate) for the company, such as the Flat Rate Scheme, Cash Accounting Scheme, or Standard VAT Accounting. We can also monitor and ensure compliance with Making Tax Digital (MTD) requirements for VAT.
Payroll and employment taxes.
The team can help set up and manage the company’s payroll system, ensuring accurate calculation and timely payment of PAYE and national insurance contributions. We can also handle reporting of benefits in kind and completion of P11D forms.
R&D tax credits and other reliefs.
We can assist with claiming R&D tax credits and also help identify qualifying R&D activities and prepare the necessary documentation to claim R&D tax credits. We can also help ensure that all eligible expenses are included to maximise the claim. The team will also help ensure that all other reliefs are claimed e.g. capital allowances, annual investment allowance and the Patent Box etc.
Financial management and planning.
We can help with budgeting and forecasting to maintain healthy cash flow and meet tax obligations. We can also provide strategies for managing working capital and improving cash flow efficiency and we can produce regular financial reports and analysis to assist in decision-making and strategic planning, identifying key financial metrics and performance indicators to monitor the company’s financial health.
Corporate governance and audit.
The team can advise directors on their statutory duties and responsibilities, ensuring compliance with company law. We can also assist with the preparation for and response to statutory audits, if required. We can also keep the company informed about changes in tax laws and accounting regulations that may affect its operations, provide proactive advice on how to adapt to new regulations and take advantage of any new reliefs or incentives.
We offer a completely complementary initial consultation.
Why not give one of the team a call today to get
answers to any questions you may have.
WHAT PEOPLE SAY
"Boxwood have been our accountants for a number of years and provide us with advice and support. We have always found the team helpful and professional. They are always available to chat through any questions we may have and we no longer worry about getting our tax filed on time.
John at Bentley Consultancy Services Ltd
"The team at Boxwood have managed my personal tax return preparation and filing since 2016 and I have found them really helpful and approachable. They are always available to answer any questions and I would have no hesitation is recommending them."
Hans-Werner at
Deutsche-Hypo Bank
"The team at Boxwood have been our accountants since 2014 and have always been helpful and proactive. They help us with our VAT, payroll and year-end filings. They always remind us when there is an approaching deadline and we no longer have to worry about our accounting and tax."
Karen at Chomp
Creative Ltd
Why should you choose us?
Keeping on top of your accounting and complying with tax legislation can be overwhelming. Partnering with the right accountants and tax advisers will make a real difference; saving time, money and worry and allowing you to focus on growing your business with peace of mind.
1
Chartered
Tax Advisers
We are fully qualified Chartered Tax Advisers & Accountants and we can provide expert advice & guidance
2
Complimentary
Consultation
We provide a completely free initial consultation, allowing you time to chat through any questions you may have
3
Competitive
Fixed Pricing
We operate on a fixed fee basis which is agreed in advance and there are absolutely no hidden costs
4
Small Business
Expertise
We have a long and established history of providing advice and support to small businesses.
Switching accountant?
If you are not getting the level of service that you expect from your current accountant then switching is very straight-forward.
1
Book our complimentary consultation and get answers to any questions you may have and get a fixed fee quotation,
2
Once you are happy that Boxwood Accountants is the right accountant and tax adviser for you then simply let us know by dropping us an email,
3
We will contact your previous accountant to advise them of the change and obtain all relevant records from them. Once we receive these the the switch is complete.
Useful tools for Limited Companies
