Company Accounts and Corporation Tax: A Guide for London Limited Companies

Running a limited company in London brings real advantages, but also a set of legal filing duties that carry penalties if you get them wrong. Understanding what you must file, and when, is the first step to staying on the right side of both Companies House and HMRC.

What a limited company must file

Every company must prepare annual accounts, file a confirmation statement each year, and submit a Corporation Tax return to HMRC. Directors are personally responsible for making sure these are filed accurately and on time, even if an accountant prepares them.

Companies House versus HMRC

It helps to remember these are two separate bodies with separate deadlines. Companies House wants your annual accounts and confirmation statement; HMRC wants your Corporation Tax return and payment. Missing either has consequences, so keeping both diaries clear is essential.

Corporation tax deadlines

Corporation tax is generally due nine months and one day after the end of your accounting period, while the Corporation Tax return itself is due twelve months after the period ends. In other words, you usually have to pay before you have to file — which catches a lot of directors out.

Directors: salary, dividends and tax planning

How you pay yourself as a director affects your overall tax bill. A considered mix of salary and dividends, together with allowable expenses and pension contributions, can be more tax-efficient than taking everything one way. This is an area where good advice pays for itself.

How BES supports limited companies

We prepare and file company accounts and Corporation Tax returns, keep your deadlines under control, and advise on tax-efficient ways to pay yourself — all for a fixed fee. Call BES Accountancy on 0333 224 4111 or request a free quote today.