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  • 4 Tips to Boost Your Business Brand Jul 9, 2020 at 12:49 AM

    Marketing, marketing, marketing! Once you’ve completed your company formation, the “M” word will be the catalyst to building customer awareness and boosting your brand. If you’re frantically searching Google to “advertise my business”, then take note of the following marketing tips and you’ll soon understand what it takes to increase sales and growth without the need to research much further!

    1. Scrutinise Your Marketing Strategy

    There’s little use in having a viable business product if you can’t obtain profit-generating sales. Therefore, an effective marketing strategy is key. One way to assess whether your marketing strategy is (still) effective is to calculate the average lifetime value of a customer (LTV).

    For example...


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/4-tips-to-boost-your-business-brand/



    2. Create a Detailed Plan

    You don’t achieve results in business through guesswork. Every business target and goal should be planned and adhered to. Creating small incremental goals can be highly impactful and morale-boosting on your journey to boosting sales.

    Exercise: Create a weekly checklist to keep you...


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/4-tips-to-boost-your-business-brand/



    3. Time Your Marketing Approach Carefully

    “I want to advertise my business” is a fair question to ask, but not if you time said advertising poorly. Ever seen ice-cream trucks roaming the winter roads? You can only provide a supply to a demand. Pounce on marketing opportunities when the timing is right. For example, if you make...


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/4-tips-to-boost-your-business-brand/


    4. Sell Your Company’s Credibility


    In order to hold a credible business stance, you need to project reputability. Ensure your potential buyers and investors perceive you as a worthy entity from which to buy. This is where you can truly help yourself in answering the question of “how to advertise my business?”

    Exercise: Hire a copywriter and create SEO-friendly blogs for your website. Be sure that they are optimised. Once you’ve compiled quality, informative and “Google-friendly” blogs, begin article outreach whereby you...


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/4-tips-to-boost-your-business-brand/
  • This Is Why a Written Resolution Is Important Jun 30, 2020

    If you thought organising meetings is a common necessity for forming a company, wait until your company is in full swing; meetings and minutes await! For all those company-affecting critical decisions, you’ll be holding a number of general meetings and board meetings involving company members and directors; these meetings must be compliant with company law and follow the correct procedures.

    Any decisions (resolutions) made in these meetings must be accurately recorded and, in some situations, directors must also report certain meeting-matters to Companies House. However, some resolutions can be passed in writing rather than at a general meeting.


    What Are the Different Types of Resolutions?


    In order to pass company resolutions (they may be “ordinary” or “special”), shareholders have to vote for or against a proposed course of action. This process can take place either at a general meeting or by a written resolution.

    Before we get to a written resolution, here’s an overview of both an ordinary and special resolution:


    What Is an Ordinary Resolution?

    Ordinary resolutions are passed if a simple majority (above 50%) of the votes are cast in favour of the resolution. Provided that the Companies Act or the articles of association does not state the need for a special resolution, an ordinary resolution will be used for any decisions made by directors and shareholders.

    An ordinary resolution requires...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-a-written-resolution-is-important/


    What Is a Special Resolution?

    Special resolutions are used for unique or sensitive issues. The Companies Act 2006 and the articles of association will both explain which decisions require a special resolution. A special resolution may only be passed when at least 75% of shareholders vote in favour of the resolution.

    A special resolution may be used for the following:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-a-written-resolution-is-important/


    What Is a Written Resolution?

    A written resolution can be either ordinary or special and is passed in writing rather than being passed at a general meeting whereby members cast votes in person or by proxy. A written company resolution may be proposed by a director or any shareholder who owns at least 5% of the voting rights in the company.

    Invariably, written resolutions can be used for all decisions in a private limited company apart from the decisions to remove a director or an auditor.

    Note: Public limited companies (PLCs) cannot use the written resolution procedure.


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-a-written-resolution-is-important/
  • This Is How You Close Your Company Jun 17, 2020

    The process of starting a new company is relatively straightforward, especially when you use the services of a formations team to setup a company — you’ll be trading and selling your products in no time at all.

    However, the process of closing your company can be comparatively complex with a number of stipulations to bear in mind. We’ll outline everything from how to close a limited company that never traded to an established limited company, and whom to contact when you’re ready to cease trading.



    Closing Down a Limited Company

    Before we explain how to close a limited company that never traded, it’s vital we look at the factors associated with closing down an established, limited company so you can draw necessary comparisons depending on your company’s status.

    Closing a limited company mainly depends on two things:

    · Is it solvent?
    · Is it insolvent?



    Strike a Solvent Company Off the Register

    When a company is solvent it means it is able to pay its bills (insolvent companies are unable to pay their bills). The simplest way to close a solvent company is for the company director to apply directly to Companies House in order to have the company struck off the register.

    In order to strike off a solvent company with Companies House, a few conditions must be adhered to, such as...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-how-you-close-your-company/



    Voluntary Liquidation by Members

    Before we outline how to close a limited company that never traded, an alternative method to closing a limited company that has traded is through members’ voluntary liquidation.

    In order to close a solvent company through members’ voluntary liquidation, the directors must declare and confirm that its debts can be completely paid within 12 months from the start date of the winding-up process.

    Follow these steps when closing a company through members’ voluntary liquidation:


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-how-you-close-your-company/



    Voluntary Liquidation by Creditors

    For insolvent companies (those companies unable to pay their bills), directors can practice a creditors’ voluntary liquidation process.

    Voluntary liquidation by creditors begins with a general meeting of shareholders as is called by the director. In order to cease trading and successfully pass a winding-up resolution, a 75% majority vote from the shareholders is required. If a resolution is passed, the company must do the following:


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-how-you-close-your-company/



    Compulsory Liquidation

    For companies that cannot pay their bills and are unable to reach an agreement with creditors, a court application may be made for a winding-up petition that will aim to close down the company. The company will...


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-how-you-close-your-company/


    Closing Down a Company That Has Never Traded

    If you’ve had a dormant company from the date of registration — in which case HMRC will class it as “inactive” — then it will not be susceptible to tax liabilities like VAT, PAYE, or corporation tax. As long as you can evidentially and legally declare that your company has never traded and indulged in capital gains from trading products or selling business assets, you’ll be exempt from paying any sort of business taxes.

    However, it is recommended to contact HMRC for confirmation of your company status and understand whether closing your company has resulted in/will result in any untoward implications. Notably, you may continue to receive correspondence from HMRC at your registered office address if you do not finalise and confirm your company status.


    Dissolve a Dormant Company

    And this is how to close a limited company that has never traded! It’s a fairly simple process when you have a dormant company (a company that have never traded) as long as the majority of a company’s directors agree with the closure.

    Once the agreement has been reached to close down your dormant company, the process of how to close a limited company that has never traded is similar to the section above regarding the striking off of a company: a director must request and submit Form DS01, which should be filed with Companies House for a £10.00 fee. The following details will be required:


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-how-you-close-your-company/
  • What Is a Holding Company? Jun 12, 2020

    Invariably, when you’re starting new company, it’s for the purpose of trading (buying and/or selling goods). However, some companies, that on the surface seem like a conventional trading entity, are quite the opposite — they simply own assets without trading. And there’s your “holding company”.



    What Does a Holding Company Do?

    Generally, a holding company is a company that deals specifically with assets, investments, and management, rather than directly buying or selling goods and services to muster profit from the sales of products. Essentially, a holding company does not have any trading operations or activities.

    A holding company typically has the responsibility to supervise and manage other companies, in addition to, or instead of, holding shares and receiving dividends from their shareholdings. Other than this business practice, a holding company will not exercise any other form of business activity.



    What Assets Does a Holding Company Own?


    Since a holding company’s main function is to own assets and not buy or sell goods, they typically own a number of entities; invariably anything with a value can be owned by a holding company as an asset. For example:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/what-is-a-holding-company/



    How Does a Company Qualify as a Holding Company?

    According to the Companies Act 2006 (sec. 1159) a company will be considered to be a subsidiary of a holding company if the following are true:


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/what-is-a-holding-company/



    What Are the Tax Advantages of a Holding Company?

    Since many share disposals and dividends enjoy tax exemptions, a key attraction to a holding company is its potential tax savings.

    A holding company can dispose of its shares without the consequence of tax liability if it owns a “significant shareholding” of at least 10% of the ordinary shares in a subsidiary for a period of 12 consecutive months during a two-year period preceding the disposal. The requisite being that both the holding company and its subsidiary are active companies for a 12-month period pre and post disposal.


    Additionally, a holding company can enjoy tax exemptions for VAT-taxable supplies if a holding company:


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/what-is-a-holding-company/



    How to Register a Holding Company


    Just as you would set up a private company or a company limited by shares, a holding company must go through the same set up process. You have to legally incorporate your business at Companies House and submit statutory filing requirements in a timely manner.


    Some of the details you might need to hand when it comes to registering your company, include:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/what-is-a-holding-company/


    What Can I Use as a Company Name?

    An Example of a Holding Company

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/what-is-a-holding-company/
  • This Is Why Companies House Must Know You’re Moving Jun 5, 2020

    Once you’ve completed the processes of forming a company and have begun trading, you must consciously maintain good business housekeeping: staying on top of your records, correct filing, updating the necessary bodies etc, with Companies House in particular requiring such up-to-date information.

    When you change your address (even if it is your personal residential address) it is absolutely necessary as a company director that you inform Companies House of the new details — this is true even if your home address is not used as your registered office address.

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-companies-house-must-know-youre-moving/


    But Why Does Companies House Need to Know I’m Moving?

    Since the running of a UK company is based on transparency and open communication, a person of significant control (PSC) is required to provide such important details to Companies House.

    The reason business owners need to...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-companies-house-must-know-youre-moving/



    Inform Companies House of a Director’s Home Address Change


    Updating your address details is not a difficult task and can be done by visiting the relevant Companies House section of GOV.UK. You will not be charged a fee to update this detail and where relevant, any updates will be displayed on public record within 24 hours of making the necessary update.

    Simply head over to Companies House online and complete the form “CH01 Change of Director’s Details”. You must do this within 14 days of the relevant address change. Be sure to have the following details available when completing the form:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-companies-house-must-know-youre-moving/


    Inform Companies House of a PSC’s Home Address Change

    In order to update the residential address of a person with significant control, you must complete the form “PSC04 Change of Details of Individual Person With Significant Control”.

    The amendment must be made with Companies House online and submitted within 28 days of the change of address. Be sure to have the following details available when completing the form:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-companies-house-must-know-youre-moving/


    How to Apply for Disclosure Exemption From Companies House?

    If your residential address is used as your company’s registered office address, Companies House will not be able to remove your home address from the company register. However, there are certain circumstances where directors and PSCs can request Companies House for the removal of their home address details (when it is used as their service address) from the public record. Additionally, you can...


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-companies-house-must-know-youre-moving/
  • Pros and Cons of Being VAT Registered May 29, 2020

    When starting a new company, be prepared to adhere to a number of inevitable legalities, such as your VAT registration. You must legally register for VAT when your taxable turnover (not your profit) for the previous year exceeds £85,000 (or is expected to do so within the following 30 days).


    However, some small companies may choose to voluntarily register for VAT even though their taxable turnover will not exceed £85,000. And before we outline the pros and cons of being VAT registered, let’s briefly observe the definition of VAT.


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/pros-and-cons-of-being-vat-registered/



    VAT Defined

    VAT stands for “value-added tax” and is a consumption tax placed on a product whenever value is added at each stage of the supply chain. For UK businesses that are VAT-registered, there is a VAT charge on the majority of products and services they provide. VAT is also...


    Read the full article for FREE at
    https://www.yourcompanyformations.co.uk/blog/pros-and-cons-of-being-vat-registered/



    The Pros of Being VAT Registered

    Since the £85,000 figure for VAT registration is a legal threshold, the discussion of the advantages/disadvantages of VAT registration seems irrelevant. However, for companies that seek voluntary VAT registration, there are a number of advantages to gain (of course, these also apply to companies who are legally required to register for VAT):


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/pros-and-cons-of-being-vat-registered/


    The Cons of Being VAT Registered

    If your company does not have a turnover that exceeds £85,000 then you needn’t worry about the following, seemingly disadvantageous, points relating to VAT registration. Therefore, when you weigh up the pros and cons of being VAT registered and consider the following cons to far outweigh the pros, you should ignore the option of voluntary VAT registration:


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/pros-and-cons-of-being-vat-registered/


    How to Become VAT Registered

    In order to become VAT-registered you have to sign in to HMRC Online Services — it’s a fairly straightforward process and takes HMRC approximately two weeks to process the application.

    Notably, you’re not permitted to...


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/pros-and-cons-of-being-vat-registered/
  • Shares and Shareholders Explained May 22, 2020

    When forming a company, you’ll have to familiarise yourself with your shareholding company’s key terms and definitions, including “shares” and “shareholders” and what these terms mean for your business.

    In order to understand the duties and responsibilities of a shareholder, it’s important to recognise just what those shares are with simple examples of their purpose in a shareholding company.



    What Are Shares?

    Shares are a part or “portion” of a company that is limited by shares and is simply a divided-up unit of the value of a company (each share is a specific percentage of the entire business). The shares owned by individuals of a shareholding company are called “shareholders” or “members” (more on “shareholders” later).

    How much of a company is owned or controlled by a member is reflected in the number of shares that the member holds. Typically, shareholders receive a percentage of trading profits in relation to their ownership percentage.



    What Is the Value of a Share?

    Shares have both a market and nominal value — the difference between each is known as a “premium”.

    • Nominal value
    The nominal value of a share, which is typically £1, is the sum that a member has either paid or agreed to pay for their segment/portion of the company. This sum is the reflection of how much a member would legally need to pay towards company debts or when the company suffers a winding up order. Therefore, the “limited liability” of a company’s owners is reflected in the nominal value.

    • Market value
    A share’s market value is simply the amount it is worth at the point of being sold. This figure will invariably differ from the nominal value.



    How Many Shares Can be Issued by a Company?

    One (1) is the minimum number of shares that a company may issue. This is normal when an individual sets up a limited company and is the sole owner and director. There is no upper threshold, therefore...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/shares-and-shareholders-explained/



    Can Different Types of Shares Be Issued?

    Owners of a shareholding company can form and issue whatever type of shares they like. This can be done during company registration or once your company has been incorporated. Many companies prefer...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/shares-and-shareholders-explained/



    What Is a Shareholder?

    Shareholders are any individuals who own shares in a shareholding company — that is, a company limited by shares.

    Limited company shareholders (members) form an agreement to become part of a company by investing in at least a minimum of one share.

    The number, and value, of shares held by a member reflects...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/shares-and-shareholders-explained/


    Who Can Become a Shareholder?
    What is the Difference Between a Shareholder and Subscriber?
    What Are the Roles of a Shareholder?


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/shares-and-shareholders-explained/
  • Tax Return Tips! What Can I Claim on Tax? May 16, 2020

    So, you’re officially registered and trading — beyond the birthing pressures of starting a new company. And as you approach your obligatory Self-Assessment returns, you’re asking yourself the money saving question: “What can I claim on tax?” This article outlines a number of things you need to consider to help you reduce your tax bill!


    Self-Assessment Explained

    However, in order to slash your tax bill, it’s important to understand what comprises Self-Assessment and how you should register for Self-Assessment by deadline. Essentially, Self-Assessment is short for the “Self-Assessment tax return” and most business owners (self-employed sole traders, limited company directors, shareholders and LLP partners) are obliged to send their returns to HMRC each year outlining how much they have earned and from where they earned that income.


    Depending on the amount of profit your company made in the previous year, the amount of taxable income may be higher or lower than previously returned. For this rather fickle fiscal reason, you’re permitted to offset some of your Self-Assessment tax bills by claiming a number of business expenses on your Income Tax Return.


    Therefore, we’ve compiled the following list of expenses that could assist in your money saving venture and answer the golden question: “What can I claim on tax?”


    1. Travel Expenses

    “What can I claim on tax for mileage?” If your business practice involves travelling, it’s advisable to claim a mileage allowance as part of your Self-Assessment return.

    If you drive a car or a van for work-related needs (for example, a mobile company or a field sales individual) you’re allowed to claim 45p off your tax bill for every mile you travel up to 10,000 miles. However, you can only claim 25p for every mile beyond the 10,000 miles.

    So, let’s say you drove 11,000 business miles last year, that means you’ll be entitled to claim £4,500 (for your first 10,000 miles) and £250 for the additional 1,000 miles; therefore, a total sum of £4,750 can be claimed. However, motorcycles expenses must be claimed at a lesser rate of 24p per mile.

    Additionally, you’re allowed to claim the following travel expenses:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/tax-return-tips-what-can-i-claim-on-tax/


    2. Office Equipment

    “What can I claim on tax in relation to office supplies?” A simple observation of your remote work desk will display a number of claimable items, including:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/tax-return-tips-what-can-i-claim-on-tax/


    3. Legal Fees

    “What can I claim on tax regarding professional help?” If you’ve hired a professional such as...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/tax-return-tips-what-can-i-claim-on-tax/


    4. Marketing Expenses


    “What can I claim on tax in relation to marketing?” Marketing your business is crucial and its related costs can often be extensive. Hence, it’s vital you claim marketing expenses when it comes to Self-Assessment.

    HMRC permits the following marketing related business expenses:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/tax-return-tips-what-can-i-claim-on-tax/


    5. Outstanding Invoices

    “What can I claim on tax with unpaid invoices?” This is often the least exploited consideration for saving on your tax bill. Business owners should be readily claiming outstanding or “unpaid invoices” as a viable business expense.

    When your business uses traditional accounting, HMRC permits claims for all the money (included in your company’s turnover) that is not going to be received by your business. This is labelled “bad debt”. However, in order to claim this expense, you must ensure that your company will never process/receive the payments for these invoices.

    Unpaid debts cannot be claimed for the following:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/tax-return-tips-what-can-i-claim-on-tax/


    6. Clothing Expenses

    “What can I claim on tax regarding clothes and attire?” Although you’re not permitted to claim the expenses on your entire clothes wardrobe, you can claim expenses on the following:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/tax-return-tips-what-can-i-claim-on-tax/

    Subscription Costs
    Mortgage and Utilities Expenses
    Employee Costs
    Council Tax
    Charitable Donations
    The £208 Deduction


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/tax-return-tips-what-can-i-claim-on-tax/
  • Memorandum and Articles of Association Explained May 5, 2020

    Starting a new company produces a plethora of paperwork. Staying on top of the pile will alleviate the inevitable stresses that come with company formation. Once you’re familiar with that proverbial pile, much of the unwelcome stress will begin to subside and you can focus on getting results!

    As a business owner, two important terms/documents you’ll come across are the “memorandum and articles of association”. This guide will help you understand how to get a copy of the memorandum and articles of association and outline what both of these documents mean for your business.


    A Brief Introduction to the Memorandum and Articles of Association

    It is a legal requirement for UK companies to have both the memorandum and articles of association. Both of these governing documents are produced when a company completes its formations process, and subsequently both the memorandum and articles of association will be registered at Companies House.

    Before we understand how to get a copy of the memorandum and articles of association, here’s a brief snapshot of the two:


    The memorandum of association (in its entirety) is technically a legal statement outlining the names of a company’s founders. Produced in a standard format, the document lists each subscriber’s objective to become a member and incorporate the business.

    The articles of association act as a guide to how a company should be run. Companies may wish to select “model articles” from Companies House or amend and personalise the standard document in order to devise their own rules and regulations.



    The Memorandum of Association Defined

    The memorandum is a single document containing the names of the founding members (shareholders/guarantors) of a company who have...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/memorandum-and-articles-of-association-explained/


    Can the Memorandum of Association Be Changed?

    Since this is a legal document, the format cannot be changed before you form your company. The memorandum of association is a document with...

    Read the full article for FREE athttps://www.yourcompanyformations.co.uk/blog/memorandum-and-articles-of-association-explained/


    The Articles of Association Defined


    Before you learn how to get a copy of memorandum and articles of association, let’s define the latter now that you know what constitutes a memorandum.

    The articles of association are technically the constitution of a limited company and contain a number of pages outlining this “company constitution”. This document is very much a company guide and rulebook that outlines the ways in which a company should be structured and managed in relation to the following:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/memorandum-and-articles-of-association-explained/


    Can the Articles of Association Be Changed?
    Where Should the Memorandum and Articles of Association Be Stored?
    How to Send the
    Memorandum and Articles of Association to Companies House
    How to Get a Copy of the Memorandum and Articles of Association


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/memorandum-and-articles-of-association-explained/
  • A Company’s Service Address Explained Apr 30, 2020

    Seasoned business owners are most likely familiar with the vast definitions that fill a business glossary. However, first-time entrepreneurs can be forgiven for looking up a term or two; if that’s you, don’t worry — we take the complexity out of starting a company and you’ll be familiar with all things business in no time!

    And one business term you’ll inevitably encounter is “service address”. It’s a simple term fitting of a simple explanation. Here, we outline the implications of a service address for your company and how you can retrieve your very own service address.


    What Is a Service Address?

    A service address is the official correspondence address of the following:

    · Company director

    · Company secretary

    · Subscriber

    · LLP (limited liability partnership) member

    · PSC (a company member who is a person of significant control)

    By law, all of the above must...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/a-company-service-address-explained/



    How Is a Service Address Different from a Registered Office Address?

    Every company director, secretary, subscriber, LLP member and PSC must have a service address that serves as an official correspondence address. This can be located anywhere in the world.

    However, a registered office address is the...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/a-company-service-address-explained/



    Can a Home Address Be Used as a Service Address?

    Company directors may choose to use their residential address as a service address. However, you can preserve your privacy by ensuring that your residential address is not on the public record. This helps to avoid unwanted mail as well as unnecessary public knowledge of your personal address.

    A popular option is to...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/a-company-service-address-explained/



    Can a Registered Office Address Be Used as a Service Address?

    A registered office address is not the same as a service address, however it is acceptable to have a similar address for the same purpose as long as it fulfils the legal specifications of a certified office.



    What Mail Is Sent to a Service Address?

    Only legal notices and official government mail addressed to the director will be delivered to a service address. Conversely, a director may utilise...


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/a-company-service-address-explained/



    Can a PO Box Be Used as Service Address?
    Can a Service Address Be Located Anywhere in the World?
    Does a Company Secretary Need a Service Address?
    Does a Company Shareholder Need a Service Address?
    Does an LLP Member Need a Service Address?
    Will Companies House Display a Service Address on Public Record?
    Can a Service Address Be Changed?


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/a-company-service-address-explained/






  • Your Company’s Annual Accounts Apr 21, 2020

    Once you’re done registering a company and have begun trading in earnest, you’ll have to complete a number of vital, annual documents — particularly your company’s annual accounts. Here we outline everything you need to know about a company’s annual accounts, including the ways in which you can process your own company’s accounts.

    What Are Annual Accounts?

    Annual accounts are usually described as “financial accounts”, “company accounts” or “statutory accounts”.

    Annual accounts provide a comprehensive report of a company’s financial activity over the last financial year. The information in the accounts will be used to prepare a Company Tax Return for HMRC and estimate the amount of corporation tax owed by a company.

    What Is a Financial Year?

    A financial year (commonly referred to as “fiscal year” in the U.S) is usually a 12-month period for which annual accounts are prepared. Your company’s financial year begins on the day after the last financial year ended, or on the day of incorporation for those who have just set up a company.

    Note, financial years are determined by...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/your-companys-annual-accounts/


    What Is Included in Full Statutory Annual Accounts?

    With the exception of dormant and small companies, every company needs to provide comprehensive, statutory annual accounts for Companies House. Company directors have the legal responsibility for ensuring annual accounts are processed in a timely manner by the statutory filing deadline. Shareholders must also be given a copy of the annual accounts.

    The following must be included in a company’s full statutory annual accounts:

    Read the full article for FREE at
    https://www.yourcompanyformations.co.uk/blog/your-companys-annual-accounts/


    Small Businesses and Annual Accounts

    A company can be assigned a “small business” status if it meets any two of the following caveats:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/your-companys-annual-accounts/


    Micro-entities and Annual Accounts

    A micro-entity is a very small business that fulfils a minimum of two of the following criteria:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/your-companys-annual-accounts/


    Dormant Companies and Annual Accounts

    If you have a dormant company, you only need to put together inactive accounts for Companies House, and there won’t be any need for an audit. Dormant (inactive) accounts consist of notes and a balance sheet.


    Limited Liability Partnerships and Annual Accounts

    Limited liability partnership (LLP) accounts must be arranged at the end of each financial year to report the collective business activities of all LLP members. The accounts’ duplicate should be given to every LLP and debenture holder, including Companies House.

    Similar to limited companies, micro-entities and small LLPs can arrange abbreviated accounts for Companies House, while inactive LLPs only need to...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/your-companys-annual-accounts/


    A Company’s ARD Explained

    Upon registration at Companies House, companies are given an ARD (accounting reference date) that reflects the end of the company’s financial year (typically a 12-month period).

    A company’s first ARD will be the anniversary of the last day of the month in which the company was incorporated. For example:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/your-companys-annual-accounts/


    Can an Accounting Reference Date Be Changed?
    Notify HMRC if You Change Your Company’s ARD
    When to File Your Annual Accounts
    Can You Complete Your Own Annual Accounts?
    When Are Limited Company Annual Accounts Audited?



    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/your-companys-annual-accounts/


  • Register for Self-Assessment: Deadline and Details Apr 14, 2020

    Once your company formation is completed and you’re officially registered and trading, there are a number of imperative administrative tasks you’ll need to process: including the obligatory Self-Assessment for your company tax returns. Here we outline how, and when, you must register for Self-Assessment, listing all relevant deadline details.

    What Is Self-Assessment?

    Before you register for Self-Assessment by deadline, it’s important to understand exactly what defines the process of Self-Assessment.

    Self-Assessment is short for the “Self-Assessment tax return” — a form that most business owners must send to HMRC (HM Revenue and Customs) on an annual basis in order to report how much they have earned and from where that income has been generated. The term “Self-Assessment” precisely indicates that an individual, or company, has the responsibility to calculate how much tax they should pay. The Self-Assessment tax return is usually just called a “tax return”.

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/register-for-self-assessment-deadline-and-details/


    Individuals Who Must Register for Self-Assessment by Deadline Due Date


    The following are the group of individuals who have to register for Self-Assessment by the deadline and subsequently send tax returns and pay their Income Tax and National Insurance Contributions on their taxable income through Self-Assessment:

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/register-for-self-assessment-deadline-and-details/


    Self-Assessment for a Sole Trader

    When you’re a sole trader, you have to register for Self-Assessment by the deadline since HMRC will not know how much profit your business has made during the past year as sole trader’s tax deductions will not automatically be submitted. For this reason, as a sole trader, you must submit your figures for profit and loss in your Self-Assessment form so that HMRC can work out exactly how much tax and National Insurance you need to pay at the end of each tax year.

    Being a sole trader is arguably the most autonomous form of business structure; particularly advantageous for those with small businesses with a taxable annual income under £20,000.


    Self-Assessment for Limited Company Directors

    Although they may be owners of a business, limited company directors are technically “company employees”. Directors normally receive a salary through PAYE. Their personal tax and Class 1 National Insurance will be deducted at source.

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/register-for-self-assessment-deadline-and-details/

    Self-Assessment for LLP Members
    Register for Self-Assessment by Deadline Dates Below
    How Much Tax Is Owed?


    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/register-for-self-assessment-deadline-and-details/




  • What Is a SIC Business Code? Dec 20, 2019

    The complete process of company formationdemands a complete filing system — with the vast amount of must-remember registration documents and numbers, it’s important that you’re aware of important company codes; notably, your SIC business code.


    SIC Business Code

    A SIC code is a Standard Industrial Classificationcode. First established in the US in the early 20th century, SIC business codes classify industries with a...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/what-is-a-sic-business-code/



    How Are Trade Groups Classified?

    Companies House website displays a condensed version of the full codes(as found at the Office for National Statistics). The SIC business codes are...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/what-is-a-sic-business-code/



    How to Retrieve Your SIC Business Code

    It’s not uncommon to baffle entrepreneurs when they’re asked about their SIC code. To remain in the know and learned about your trade and SIC business code, you can follow the simple method of retrieving your SIC business code by...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/what-is-a-sic-business-code/


    How to Change Your SIC Business Code
    When Would You Need SIC Business Code?
    The Difference Between SIC 2003 and SIC 2007

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/what-is-a-sic-business-code/


  • All You Need to Know About Limited Company Shareholders Dec 18, 2019

    When you’re starting a new company, you must familiarise yourself with the duties and responsibilities of your company’s key individuals, notably your limited company shareholders.


    Limited Company Shareholders Defined

    Simply put, limited company shareholders own companies limited by shares. They are sometimes referred to as...


    Read the full article for FREE at https://www.yourcompanyformations.c...d-to-know-about-limited-company-shareholders/


    Who Can Be a Limited Company Shareholder?

    Limited company shareholders can be any of the following:

    Read the full article for FREE at https://www.yourcompanyformations.c...d-to-know-about-limited-company-shareholders/



    What Are the Duties of Limited Company Shareholders?

    The roles of limited company shareholders involve the following:


    ·Receiving a portion of available profits with regards to their shareholdings

    ·Deciding which powers to give to company directors

    ·The investment in a business

    ·Authorising the structure of dividends

    ·Contributing to company debts up to the limit of their liability

    ·Putting in place the set particulars attached to shares

    ·Appointing and removing directors

    ·Authorising the allotment and/or transfer of shares

    ·Decision making in exceptional situations where directors have limited powers (e.g. changing the company structure, changing the name of the company, modifying the articles of association, as well as making modifications to the shareholders’ agreement)

    ·Setting the salaries of directors

    ·Acquiring a part of the excess capital with regards to their shareholdings in the event that a company is dissolved


    What is the Difference Between a Limited Company Shareholder and Subscriber?

    A “subscriber” is the term used to define the first members in a private limited company. During the formation of the company, subscribers will include their names into the memorandum of association, which acts as a confirmation that the original limited company shareholders have agreed to be company members. Their names are included in the public register and remain on the memorandum even if they leave the company. Any person or corporate body who becomes a shareholder after incorporation will not be regarded as a subscriber; instead they will only be called a “member” or “shareholder”.



    What Is the Difference Between a Limited Company Shareholder and Guarantor?

    While a guarantor owns a company limited by guarantee, limited company shareholders own...

    Read the full article for FREE at https://www.yourcompanyformations.c...d-to-know-about-limited-company-shareholders/




    What Is the Difference Between a Limited Company Shareholder and Director?
    Is It Possible for a Limited Company Shareholder to Also Be a Company Director?
    What Limited Company Shareholder Information Is Available to the Public?
    What Is a Corporate Shareholder?



    Read the full article for FREE at https://www.yourcompanyformations.c...d-to-know-about-limited-company-shareholders/



  • This Is Why a Registered Office Address Is Important Dec 13, 2019

    Running a business requires dedication, focus, and an unwavering desire to build a scalable brand; part of that “brand building” requires a credible business image. And choosing the right location can go a long way in building that brand — something to keep in mind when you’re starting a new company. During this initial process of company registration, you’ll often be prompted to declare your registered office address; here we’ll outline exactly what that means and why it’s so important for your business.



    What Is a Registered Office Address?

    All companies and partnerships that are incorporated in the UK are legally required to have a registered office address.

    In addition to storing your company’s statutory registers for inspection, a registered office address acts as...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-a-registered-office-address-is-important/



    Why Does a Limited Company Need a Registered Office Address?

    Since a registered office address is a legal requirement under UK Company Law, you cannot start or run a private limited company or limited liability partnership in the UK without having a registered office address. In order to achieve corporate transparency, your registered office address details will be...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-a-registered-office-address-is-important/



    A Registered Office Address for a Limited Liability Partnership (LLP)

    As with a limited company, an LLP must also have a registered office address located within the same UK area to where the partnership is incorporated (England and Wales, Scotland or Northern Ireland).



    Can I Use My Home Address as My Registered Office?

    Although you’re permitted to use your home address as the registered office address, it’s not mandatory, orrecommended. A separate registered office address is...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-a-registered-office-address-is-important/



    What Is the Difference Between a Registered Office Address and a Director’s Service Address?

    A registered office address:This is your limited company’s official address. All correspondence and legal documents/notices from UK government entities are delivered to the registered office address. Your registered office address must be registered in same location as company incorporation (England and Wales, Scotland or Northern Ireland).

    A director’s service address:A director’s service address is the authorised contact address of a company director, LLP member, company secretary, subscriber or...

    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-a-registered-office-address-is-important/


    What Is the Difference Between a Registered Office Address and a Business Address?
    Can a PO Box Number be Used as a Registered Office Address?
    Can a Council House or Rented Accommodation be Used as a Registered Office Address?
    Can I Change My Registered Office Address?
    Can I Change My Company’s Registered Office Address to a Different Country?
    Where Should I Display the Registered Office Details?
    What Statutory Records Need to be Kept at a Registered Office Address?



    Read the full article for FREE at https://www.yourcompanyformations.co.uk/blog/this-is-why-a-registered-office-address-is-important/