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Limited Company Compliance – What Are the Requirements?

Running a limited company in the UK comes with ongoing legal and tax obligations to both HMRC and Companies House. These responsibilities apply whether the company is profitable, making a loss, or even dormant.

Every limited company must prepare annual statutory accounts at the end of its financial year. These accounts include a balance sheet, profit and loss information and supporting notes prepared in accordance with UK accounting standards. The accounts must be filed with Companies House, usually within nine months of the company’s year end.

In addition to filing accounts, the company must submit a Corporation Tax return (CT600) to HMRC. This includes detailed tax calculations and confirms the amount of Corporation Tax due. While the return is normally due twelve months after the accounting period ends, any Corporation Tax payable must generally be paid within nine months and one day of the year end.

Companies are also required to file a Confirmation Statement at least once every twelve months. This confirms that the information held at Companies House is correct, including details of directors, shareholders, the registered office address, share capital and People with Significant Control.

Proper record keeping is a legal requirement. Limited companies must maintain accurate financial records, details of company transactions, and statutory registers. These records should normally be retained for at least six years.

Director Responsibilities

Although a limited company is a separate legal entity, directors still have personal tax obligations. If a director receives salary, dividends or other taxable income, they will usually need to submit a personal Self Assessment tax return. This reports their individual income and calculates any tax due separately from the company’s Corporation Tax position.

Meeting these obligations on time is essential. Late filings can result in automatic penalties from Companies House and financial penalties and interest from HMRC.