What is Companies House?

The role of Companies House is often unknown to both start-ups and many established businesses.  Clients are often confused as to why they are required to file accounts with both HMRC and Companies House.

The main role of Companies House is:

  • To incorporate and dissolve limited companies
  • To store company information and make it available to the public.

This role means that a lot of company information can be found out through a simple search via Companies House online service, Webcheck.  As a minimum, the following information is available through this service:

  • Historical sets of company accounts (be aware however that if the company is classed as small, they are able to file abbreviated accounts which only show limited useful information).
  • Annual return. This document is filed annually by companies and shows details of the directors and shareholders of the company.
  • Registered office of the company.
  • Date of incorporation.

These documents as well as many others can be downloaded from the site for £1 each.

What does this mean for a company?

Firstly, the downside.  As a Limited company, there is a lot of information on the public record which can be accessed for a small fee.

The benefit of this however is that Companies House can be a very cost effective and simple way to carry out checks on your competitors, partners, suppliers or customers.  The financial information shown for small companies is often not that useful, but it may give a basic idea of their financial strength.  Using this service will also help in checking that a potential business associate is not being dissolved or in liquidation.

Online VAT Returns

Since April 2010 most VAT registered businesses have been required to submit their VAT Returns online and pay any VAT due electronically. From 1 April 2012 all VAT registered businesses will be required to meet these requirements, apart from a very small number who will be exempt.

Exemptions from doing your VAT online

Businesses may not have to comply with the requirement if:

  • they are subject to an insolvency procedure – but if the business is subject to an approved Voluntary Arrangement, administration or trust deed, an online submission may be made
  • HMRC is satisfied that the business is run by practising members of a religious society, whose beliefs prevent them from using computers.

If you believe either of these exemptions apply then it is important to confirm the position with HMRC and not assume that the exemption applies.

Paying your VAT electronically

Businesses which submit their VAT Returns online, must also pay any VAT due electronically. This generally gives businesses up to seven extra calendar days to submit their return and pay their VAT. There are some exceptions to this rule, for example businesses which file annual returns and make payments on account.

HMRC advise:

‘The extended due date will be shown on your online return and you must ensure that cleared funds reach HMRC’s bank account by this date. If your payment clears later than this, you may be liable to a surcharge for late payment’.

‘There are various ways to pay including by Direct Debit, online and telephone banking. You can also pay by cheque at a bank or building society using a Bank Giro paying-in slip which can be obtained from HMRC. Since some of these methods can take a little time to set up, you should choose which method you want to use, and set it up, well in advance of the filing and payment deadline’.

If you have any questions on this please feel free to contact Kilby Fox on 01604 662 670 or through the website, by completing the box on the right hand side.

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