Many Contractors and Freelancers come to us keen to start up a Limited Company, this might be either because their end client requires them to have one, or because they are keen to be more tax efficient and increase their ‘take home pay’.
When we incorporate a Limited Company for you (which we complete at QAccounting for free) you become the Director of a Limited Company, and in the wise words of Uncle Ben to Peter Parker in Spiderman: ‘with great power, comes great responsibility’ (Actually it was a Voltaire quote originally).
As Director of a Limited Company you have many ‘Directors Responsibilities’, including ensuring that certain documents are prepared correctly and delivered to Companies House.
Director Responsibilities:
1. Annual Return
Companies House check in every year on the anniversary of your company’s incorporation to confirm that all of the details are still the same – i.e. Company Name and Registered Number, Directors, Principal Business, Registered Office Address, Shareholders and Amounts of Shares, etc.
2. Annual Report and Accounts
Often referred to as your Limited Company Year End Accounts.
3. Company Changes
You also have to make sure that Companies House is made aware of any changes to the Limited Company.
These are your responsibilities but you can often get assistance from your Accountant, who could prepare and submit your annual return and will often act as your Registered Office Address, ensuring that your important company mail can be dealt with ASAP. Saves you time, money and worry!
Your Limited Company Accounts will be prepared by your accountant but it is your responsibility to sign off on the accounts and guarantee that they are correct.
This is why it is important to have;
- an Accountant you trust – feeling as if you are in capable hands will ensure confidence in your Accounts.
- an Accountant who will explain aspects of your accounts to you in plain English – to ensure you have full understanding of your business.
- and an Accountant who you are not afraid to ask any questions before signing off your Accounts – no question should be too big or small.
There are in depth Companies Act Duties and Financial and Legal responsibilities of being a Limited Company Director and you can read about these in more detail on our downloadable guide (please do read this). Please don’t hesitate to get in touch if you are interested in learning more. QAccounting. You Count. We Count.
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