As a director you are legally responsible for running the company, making sure it’s profitable and all taxes and paperwork are correct and paid/filed on time. As your accountant we’ll help you and support you to do this but the final responsibility lies with you.
As a director of a limited company you’ll be responsible to the company for:
- trying to make the company a long-term success, using your skills, experience and judgement to support this
- complying with relevant legislation
- keeping company records (for 6 years minimum)
- you can be fined or disqualified if you don’t do this
- for example
- details of directors, shareholders and their transactions
- invoices, receipts and financial transactions
- details of any loans, assets etc
- reporting changes to Companies House (CH)/HMRC i.e.
- registered office address
- company details i.e. business name, your name, type of trade, directors
- issuing shares
- making sure the accounts are ‘true and fair’ - so the view of the business’ finances is accurate
- filing accounts with CH, filing tax returns with HMRC and paying Corporation tax
- filing an annual return/confirmation statement with CH, confirming company details to CH once a year
- following the rules laid down in the company’s articles
- things like how to make and record decisions, take votes, record distributions
- making decisions that benefit the company (taking all stakeholders in to account) and telling other shareholders (if applicable) if you might benefit from a decision you make
You must also register for Self Assessment and submit Self Assessments every year to make sure your earnings are declared and taxed properly.
You’ll need to set up a company bank account and make sure you have a UK address that’s allowed to be your registered office. You’ll have other smaller responsibilities, like making sure invoices are issued properly.
There are time limits when reporting some of the changes, so let us know as soon as possible - there are more reportable changes than this so keep us in the loop.
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