Limited company obligations

dixie_dean_2

A friend and I set up a ltd company around 12 months ago without doing much research or giving it too much thought. We have since but just wondered if anyone knew off the top of their head what our obligations are? I'm about to do the annual report to companies house and of course there will be the tax return - is there anything else obvious?

Thanks...and sorry for being lazy!

browneyedbazzi

Erm...the most obvious thing I can think of is the requirement to have the company name, number and registered address on all business correspondence. It's a bit shocking how many people miss out something so simple.

dixie_dean_2

Hahahaa. Good one. You belong on TV!

SueC_2

It's a bit terrifying that you've got this far without even considering your responsibilities, which to be honest are so extensive, ranging from Tax to Health and Safety, through employment law, trading standards, financial reporting requirements and insurance necessities to name but a few, that they couldn't possibly all be listed in a forum post.

This might be a good starting point.

https://www.amazon.co.uk/Directors-Handbook-Duties-Responsibilities-Liabilities/dp/074946058X/ref=sr_1_1?ie=UTF8&qid=1315314505&sr=8-1

dixie_dean_2

I could well be wrong but a lot of things don't apply to us as there are just the two of us (both directors) and it's an internet company with no premises, no purchasing/selling...not much!

heretolearn_2

As well as the annual return to Companies House you also have to submit accounts to them. Corporation tax return to HMRC. As directors you are employees of the company so I hope you are handling your earnings correctly and not just taking drawings as you would if you were a sole trader- you can't do that as directors. You need to look at salary, dividends and bonuses to take your money out. You may also need to do personal tax returns.

SueC_2

dixie_dean wrote: »

I could well be wrong but a lot of things don't apply to us as there are just the two of us (both directors) and it's an internet company with no premises, no purchasing/selling...not much!

Nevertheless, you need to be absolutely clear about what does and doesn't apply to you.

Even if you're running an internet business from your spare bedroom, you need to ensure that your house insurance isn't compromised by doing that, and that you have the relevant business insurance in place. If you're drawing a wage you'll also need Employers Liability insurance. Depending on what you're doing, you may also need Professional Indemnity insurance.

They're just the first couple of things that spring to mind, don't be fooled into thinking "it's just the two of us, not a proper business". You've registered it as a proper business, therefore proper business rules apply. And if you get caught not playing by the rules, then as company directors, on your head be it.

dixie_dean_2

Thanks everyone, especially agrinnall. I did consider the home insurance thing and that's fine. It's an affiliate business so no insurance needed I don't think. The biggest confusion is regarding paye and earnings generally. We'll look into that more but basically, as it's just the two of us and the turnover is pretty low I think we're just intending to leave all the capital in the business for now. Just not exactly sure how to do that! But am reading lots! Thanks again.