Setting up a limited company
If you are setting up a limited company you need to do a number of things:
- Tell HMRC that your company exists and that it is liable for tax by completing a CT41G form. Get this from www.hmrc.gov.uk/ct/new-company/start-up.htm.
- Complete a Self Assessment Company Tax Return for your company at the end of the accounting period. You can dothis online at www.hmrc.gov.uk/ct.
- Work out how much Corporation Tax the business owes and pay it, without assessment by HMRC.
- Set up a PAYE scheme and operate PAYE on employee’s, including Director’s income.
There is a lot to know about corporation tax and many people choose to use an accountant to help them manage this. You can also get help with the basics at www.businesslink.gov.uk. It is your responsibility (even if you employ an accountant) to make sure all necessary tax returns are completed on time. If Corporation Tax is paid late, a penalty
for late payment will be charged.
To watch a short online video on ‘Corporation Tax’ visit www.businesslink.gov.uk/taxhelp.