WHAT YOU HAVE TO FILE AS A LIMITED COMPANY IN 2020 (UK)

Wondering how to file limited company accounts? Wondering when they are due?
In this video Dan runs you through what you need to file for a limited company in 2020 (UK).
Dan cover questions including as:
How to file limited company accounts
What you need to file for a ltd company (UK)
What to file with Companies House for a limited company
What to file with HMRC for a limited company
When do you need to file limited company accounts
When do you need to file company tax return
Do you need to complete a company tax return
Dormant limited company
..... and more!
#selfemployed #Startup #HMRC #limitedcompany
If you need help with filing the accounts, get in touch below.
You can see more about what we get up to on the following:
LinkedIn (Dan): / danheelan
Instagram (Dan): / danheelan
Instagram (Company): / heelanassoc. .
Facebook (Company): / heelanassoci. .
Twitter (Company): / heelanassocs
Web: www.heelanasso...
Call: 02392 240040
Email: [e-mail]

[@AA-cm3pd]

You're literally saving lives with your videos. Thank you!

[@HeelanAssociates]

Thank you :- )

[@cabhumitbhatt7389]

Dan is legend😎👍

[@ExtraNullByte]

For me this just feels like UK doesn't want people to start their own businesses, pay this, file that, tax this, tax that.. I am looking to start my own business but all these "things" are just complicated and making it hard for someone to get anywhere.. I can't be the only one here that feels like this... I must be missing something... Especially when it comes to tax.. just simple numbers such say LTD company makes 30k a year - Corp Tax ends up being 5700 - leaving 24,300 then say I pay my self 20k while being on higher tax rate of 50k - HMRC will take another 40% off that 20k, that's another 8k paid to HMRC. 8,000 + 5,700 = 13,700 paid to HMRC on 30k profit. that's nearly 50% of all the money given to HMRC and that's not including any NIC payments and what not. Sure, getting some dividends might change those numbers a bit but in general, that to me seems like a lot and HMRC wants me to keep track of all the things that need to be filed, in an effort to extract even more money via fines? I think the whole system is broken in all honesty... I am not an expert in this field, I am learning and I honestly don't like the fact that the gov is playing like this - no wonder most of the population ends up as a working class because they make it very hard for people to get anywhere in life - then again - the whole country is being funded by working class, and if they make it easy then they would lose a lot of money I guess where companies eventually move to places where taxes are lower or find loopholes to avoid paying tax all together... Hopefully someone can shed some light on this as I might be too inexperienced in the whole world of running a business but honestly at this point I am actually scared to even start my own business knowing that HMRC is just around the corner waiting to scr**w me over, issue fines and on top of that expect me to run the business...

[@HeelanAssociates]

Thanks for taking the time to pen your thoughts! It defo can seem daunting to start, and the multiple taxes can seem a worry. Compared to some other countries, our tax and paperwork isn't actually as bad..... The main thing is if you are looking to reduce filing, don't be limited. You may pay more tax if you are successful, but at that point you can afford professionals to help with the LTD. Re your figures, you are looking at: £30k profit £5700 corp tax = £24,300 If you then withdraw *all* of it as profit (divi) and you are already higher rate, you will pay 32.5% (currently) over the first £2000 of dividends. Presuming no other divi income, around £7,247. No NI on this, but the effective tax rate is similar. You are right, this is a sting. There are things you can do to make that more efficient though and effectively reduce that 32.5%, depending what you are looking to do with the money. Thinking pensions, benefits etc etc. I always say though, 'successful people pay tax; tax is a success fee'. It's about making sure you don't pay more than you need to because of lack of knowledge. What's the options, do nothing, watch Netflix or make some cash and pay tax? You still have 60% more income than the Netflix option :- )

[@ExtraNullByte]

@@HeelanAssociates Thanks - When I wrote that post, I was in a bad state of mind due to reading a lot about LTD and what goes into it, turned to KZbin to learn more and came across your channel, which is a gold mine - so thank you for all the great content. I am already a week into reading about starting my own business and every day there's yet another rabbit hole - I completely agree on the whole get out there, make a successful life and not waste it on Netflix and that's exactly what Im trying to do - I am a tech person and want to make something, I watched your other video and I will be looking to get professional help from an accountant and see what my options are. Thank you again for great content.

[@EmmalinaFortuna]

This is a great comment. I have recently tried to venture into business and the biggest anxiety for me is the tax and all the filing. There is a lot going on especially when you are a newby to this stuff. Does give me a lot of anxiety whenever I get letters in the post from HMRC or Companies House but best we can do is learn as much as you can and seek out the professionals.

[@jv8studios]

Thank you for sharing this video. I just started a video production company. So ill be referring to you channel for advice alot in the future!

[@HeelanAssociates]

Great! Glad you enjoyed!

[@AbbasKhan-ud6mr]

Thank you for doing these videos, great job and veey helpful. :)

[@HeelanAssociates]

Glad they help :)

[@Wuwuetan]

Thanks for the help

[@kathleensisland]

Not sure if you have a video already. But can you do a video of how you process cash invoices through ltd company? I.e if small businesses provide a service and it was paid for by cash by a customer. Thank you. Videos are very helpful

[@HeelanAssociates]

We will add to the list!

[@lucky13lucky]

How about for micro entities? I will have a very small company but it will be Ltd because it’s secondary to my main income. Would I still need to use special software to create the accounts and CT600?

[@HeelanAssociates]

Yes you do. There is free Co House software for that end, but not for tax. It needs 'iXbrl filing', which is a commercial software licence.

[@jasonbig2653]

I thought you don’t need it. you can just use HMRC portal to file co house return and tax return in one go, no software required.

[@Ruvii12]

@@jasonbig2653 I thought this too if you're a micro entity. Can someone confirm this?

[@EcomGypsy]

Invaluable content. THanks a lot

[@HeelanAssociates]

Glad you enjoy!

[@madushkahasindu9687]

Any chance of you doing a video showing what a director needs to do at the end of the year with an example and doing a walk through while you doing the filing? Thank you

[@HeelanAssociates]

Can you expand for me? We wouldn’t be able to show how to do a set of accounts if that’s what you meant, that takes years to train and every case diff

[@mitchell9824]

Hi could you do a video on how to prepare year end on quick books

[@HeelanAssociates]

If you mean for submission to hmrc /companies house is currently not possible. You need to external software.

[@matilda4105]

Can you expand at 04:29? How can this be avoided? What do people typically get wrong about the first year?

[@HeelanAssociates]

Check with HMRC corp tax people around what periods of return they have issued. This can help spot the problem early - i.e are there two returns and the dates are wrong.

[@mikeparker444]

Very useful thanks.

[@HeelanAssociates]

Glad you found it useful!

[@banana5961]

Hiya. Your vids are so great. i started a company with my friends on the 12th april 2023. They were super unhelpful and ignored me for months. I resigned on 15th April 2024. Ive still got 1/3 shares. I completed the confirmation statement before i resigned. The other directors informed companies house that i left. Do i have to inform hmrc i resigned. If the other directors dont do their filing for corporation tax or companies house will i get in trouble even though i resigned. How would they even contact me because my correspondence address was the other directors house and ive resigned now. Also i didnt earn a penny from this, do i need to register for self assessment as a director? THANKS SO MUCH!!!

[@HeelanAssociates]

Glad you enjoy the vids. Re notification to hmrc - no there is no action here it’s companies house. There could be a situation if hmrc knew your details previously that if docs weren’t filed they may make contact, but then you could write stating the facts and showing your companies house notification of resignation. Re the tax return, which it *sounds* not required, check directly with hmrc to be sure they have not issued one.

[@tonys490]

do we have to submit profit and loss account here or just balance sheet when filing company returns ?

[@HeelanAssociates]

With the accounts, its normal to only submit 'filleted' accounts to Companies House for a small company, that don't show a profit and loss. That way it hides the detail. You could submit the full version but people generally don't. The tax people (HMRC) want the full ones with Profit and Loss though!

[@Mo.2689]

I have loaned my limited company money in order to pay invoices. How do I go about refunding myself, and what is the tax implication?

[@HeelanAssociates]

Sounds like you have started a ‘directors loan account’. The company now owes you that back. You returning that money (or less) to you is tax free.

[@ghazalamalik6980]

Why is it all so complicated? Is there a list somewhere with all the form names and dates when they have to be completed? And explanation of the jargon.

[@HeelanAssociates]

Sadly it’s just the system, so much tax and company law in play. There isn’t a easy list is such as it depends on the exact circumstances as to what needs to be filed. This checklist might help instagram.com/p/CCl8Em8JnLp/?igshid=12xsti3sip8pa

[@lf683]

As a self employed estate agent, I have to join the property ombudsman scheme. I paid using my personal bank account. Is this membership therefore an allowable expense and I can reimburse myself from my business to private bank account?

[@HeelanAssociates]

Professional subscriptions could well be deductible for your business. If so, yes reimbursement and recording in your records would often be the way to deal with it.

[@phunkyphantom619]

What are your thoughts on FreeAgent, that allows you to apparently submit everything to HMRC?

[@HeelanAssociates]

We've not tested the new submission software they've added yet. It appears that for super simple affairs could be used, presuming you've the accounting knowledge to know the accounts are correct (which is usually the problem). Something we will be testing!

[@Morganyh]

Where is the best place to find an accountant should you do this after setting the company up

[@HeelanAssociates]

We would always advise engaging with an accountant as early as possible in the process, as so much more tax (and hassle!) can be saved by getting the right help at the start. In terms of finding them you could ask for recommendations, but be sure to look for the things in these video: kzbin.info/www/bejne/fGjapKd3aKihh6s - we can obviously have a chat of how we can help also!

[@syedasad7124]

Hi Mathew, if you still needs help regarding your company plz inbox

[@ahmedmustafa9091]

@@syedasad7124 I just registered my company today. Can you help?

[@ZamaNRaPBanD]

Hi, I created a company in Uk. It is ltd. But i didn't do anything with it. At the end of the 9 months what kind of documents are needed to send to the Companies House and HMRC? Thanks in advance.

[@HeelanAssociates]

This one may help kzbin.info/www/bejne/Y6u9iKeprMuUibc

[@Al_070]

How can you find out exactly when the tax return is due? Companies house are clear about this for their documents but HMRC dont make it easy

[@HeelanAssociates]

Sadly they don’t your right! Even in the ‘agent’ services part we see it’s not clear, we just know deadline is 12m from the end of the period we can see. Have you got a business tax account? I wonder if it shows in there, it’s not something we’ve looked into it on that side.

[@Al_070]

@@HeelanAssociates yes, an ltd tax account

[@yobson]

is there still absolutely no way to submit the required accounts without an accountant? i saw some videos earlier about how you can submit some forms to both HMRC and companies house through a gov.uk service. are there others that you can't submit yourself? im thinking about starting a limited company and any accounts would be pretty simple, all income would be from a site i'm going to develop using stripe as the payment processor which can integrate with accounting software like quickbooks or xero pretty easily. seems silly that i'd need an accountant just to submit that for me if the bookkeeping is already done, im the only shareholder, the only director and the accounts are straightforward. perhaps just registering as a sole trader and submitting a self assessment would be easier

[@HeelanAssociates]

There is *currently* a service that allows a joint filing to hmrc and companies house for super simple scenarios. That service is being withdrawn in the next year or so as part of companies house reforms. The issue with this is it still requires accounting knowledge to prepare the accounts in full which is where most owners trip up. This is unlike a personal tax returns which is numbers in boxes. You then need an understanding of personal and corporate tax interactions to make sure everything is correct. I’ve never seen this correctly done in 17+ years of taking on clients who have tried. That’s not to say it’s not possible, and it’s not to say there aren’t a load of incorrect ones accepted every year 😂

[@yobson]

@@HeelanAssociates good to know, thanks. I guess they'll be getting rid of it because of how many errors were made in those submissions 😄

[@ikramasghar5148]

Thank you for the information. The company started on 14 October 2020. Our company records show this "First accounts made up to 31 October 2021due by 14 July 2022". Does this mean we have to pay corporation tax before 14 July 2022?

[@HeelanAssociates]

It depends on what HMRC have issued on your corporation tax returns (you may have two in first year), but would expect tax due around that time. Most years for a year ending 31st October, would be 1st August the next year.

[@DC-qv6gq]

Awesome.

[@HeelanAssociates]

Glad you enjoyed!

[@RajNRI]

Thanks for informative videos Please advise can a UK limited company receive remittance say as a gift from parents in India in inr to gbp via online wired transfer and what are its tax implications compared to receiving money as a gift to a individual in UK ? Ideally this money will then be used for 1st property purchase in the UK If you can make a video will be brilliant and useful to hopefully few people 😊🙏 Many thanks

[@HeelanAssociates]

Probably a little hard to cover this in a comment this one, but in it sounds like what you could be doing is just loaning money to the company, which wouldn't have any tax implications (usually) for the company.

[@vishnupriyaanand459]

we need to remit the annual filing fee of gbp 13 for confirmation statement.. we have submitted returns. Only payment portion needs to be done. Pl guide

[@HeelanAssociates]

Hi there, sorry confused by your question?

[@scorpiongod4269]

What is the best iXBRL software that you would suggest and does the software integrate with HMRCs portal to file the tax return. Thanks

[@HeelanAssociates]

All of the current iXBRL softwares are commercial licences, products like iris and tax calc. They have accounting and tax modules but for a single set would be very expensive - you’d be better off with an accountant. If you are a non accountant and really want to try, tax calc is probably one of the best for that, but you will still need knowledge of tax law, company law and accounting standards (frs105 frs102a etc)

[@russellnorth6762]

I have a Ltd company and need to appoint an accountant but this first year has been lousy and a lost due to covid , can you help ?

[@HeelanAssociates]

Hi Russ, sorry to hear it's been a tough first year. if you'd like a price on our help, drop us an email [e-mail] and one of the team can get in touch. Helping LTD owners is what we do.

[@MBicknell]

Why does it say company deadline is 12 months after accounting petiod. But corporation tax is due 9 months 1 day? I thought they were the same thing?

[@HeelanAssociates]

It’s one of the oddities of the system! The Corp tax return is 12 months, but payment is 9 and a day, so you never normally go to 12 month.

[@MBicknell]

@@HeelanAssociates thank you great channel btw, subbed 👍

[@MuhammadQasim-ot9fs]

What is called up shared capital not paid means?

[@HeelanAssociates]

Means in theory the shares aren't paid for yet.

[@usmanfarooqofficial1178]

Sir I make a private limited company on Nov 2021 and when we get sumbit the tax return to uk government ? So now we get register vat on 0% tax?

[@HeelanAssociates]

You have to register for VAT when you exceed £85,000 in a 12 month period. Under that it's your choice (generally). It's **likely** your first corporation tax return (for the limited company) would be due around Nov 22, but your accounts are likely to be before this, say around August 2022. We can't give it exactly as we don't know the company, but that is the usual timescales

[@lilclin]

Hi , I opened my ltd last year July and was preparing to start trade in February 2020. Due to COVID 19 I could not start operation so my business become dominant, not trading. I have recently open business bank account to continue my business. What do I need to file for a company with no trade but have expenses. Thank you.

[@HeelanAssociates]

Can't answer that directly without further info, but it's possible on what you have said that you'd need to file a corp tax return and will need accounts, either dormant or full trading accounts to go with the tax return. Even if for some reason you didn't need the tax return, in order to claim the losses there might still be a reason you would want to do it. If you wanted an exact answer, get in touch with the team - we do a consult service where we can look at this and tell you what you need to do.

[@ssully1069]

Exact same situation here. Filed in Late March 2020, but never got the chance to actually operate, no costs, no revenue. My Accounts are due in May and Im tryna figure out what I need to do.

[@tonys490]

am I right in saying - annual returns goes to companies house and corporation tax and self assessment tax goes to HMRC ? please advice thanks

[@HeelanAssociates]

You have: Annual Accounts (full) - HMRC Corporation tax return - HMRC (These need to be 'electronically tagged' and sent) Confirmation Statement / People with Significant control register - Companies House Annual Accounts (usually 'filleted' version) - Companies House

[@Jake-Curious]

@@HeelanAssociates Thank you. And what about personal / director's tax return(s)? Would you be so kind to give a bit more details, please? (in my case I'm going to stay with my current work as well as start a business)

[@TheDylansWorld]

Hi there, my company started trading august 2020 and files due may 2021. So my accounts don't need to be filed until 9 months after that date? So essentially i have to file confirmation statement, would i need to say i started trading or how do they work? Then do i get an accountant to do my accounts within that 9 month period that covers august 2020 to that date?

[@HeelanAssociates]

Best thing to do to clarify this, is go here: beta.companieshouse.gov.uk/ Type in your company name and it will give you the deadline for filing the accounts. If you need help from an accountant, be sure to seek this well in advance of the filing deadline!

[@SuperJinxter]

I incorporated in March/April of this year but got a letter from HMRC to submit accounts to Oct 31st. So six months. Why is that?

[@HeelanAssociates]

That sounds odd. Unfortunately without access to your records I couldn’t say why. Are you sure that’s for a corporation tax return and not a personal one?

[@SuperJinxter]

@@HeelanAssociates is it because I registered the name in Oct/Nov last year. My trading year start March 5th. I used your online contact form but haven’t yet received a reply. It was on New Years Eve so I wasn’t expecting one 🥳

[@djgatsby3585]

Just to confirm there champ, year one of your business allows you 21 months to compile all of your account information so is there nothing expected of you until that time comes around?

[@HeelanAssociates]

For the annual accounts and tax return, yes that's normally the main filing deadlines. If you are payroll or VAT registered you may have more regular filing obligations.

[@djgatsby3585]

@@HeelanAssociates Much appreciated 😊

[@carloschalhoub7]

I've recently started a LTD company and HMRC are asking if the company is likely to make returns on CT61. How do I know if I need to say yes or no?

[@HeelanAssociates]

Are you looking to pay yourself interest from the company? If not, then no. :- ) This normally only happens where you've lent the company a decent chunk of cash and want to charge it interest.

[@Morganyh]

Can you pay the company director all profits as a salary thus pay no tax on the ltd?

[@HeelanAssociates]

Yes but it’s **usually** not efficient to do so Watch this one kzbin.info/www/bejne/o4GVdZenpdaHgqc

[@MuhammadQasim-ot9fs]

Since i have formed ltd company in june 2021, and did not do any business yet, do i need any kind of file a return?

[@HeelanAssociates]

It's unlikely as you've first year isn't up yet.

[@powerfulstateofmind]

Hi! When is the first tax return or any file need to be submitted? I went to the HMRC website to check and it says that we have nothing to complete until a year after the incorporation has passed.. But I am thinking there are a lot of things to complete, and invoices to add for a year.. Maybe I didn't understand this right..

[@HeelanAssociates]

The corporation tax return is the main return, which as you say you complete after your first year. Goes with accounts to HMRC. Similar to the companies house return. If you are vat registered you might have monthly, quarterly or annual returns. If you have payroll or ‘cis’ you could have monthly returns.

[@motorola9955]

Great video! I have a quick question. As the director of a limited company (micro-entity), do I have to submit an annual Self Assessment of my personal income and allowances to HMRC, if my total income and allowance is lower than the national threshold? I thought I am exempt for now but I am not sure. Thank you!

[@HeelanAssociates]

HMRC may say yes. The law basically says you need a personal tax return if you need to declare tax , or HMRC have sent you one. So if you have no tax to pay, and HMRC haven’t sent you one - no.

[@motorola9955]

@@HeelanAssociates Cheers. I contacted HMRC and answered a list of their questions, got the same result - No.

[@jumper11able]

@@HeelanAssociates does that mean the director must also have his own UTR number?

[@billmane226]

Do I need to provide all the transaction record to the accountant ?

[@HeelanAssociates]

It depends on a number of factors, it maybe they want to see some or all.

[@jhfdhgvnbjm75]

and this is why the UK has the longest tax code handbook in the world... :(

[@HeelanAssociates]

Yes... although we understand the german tax code isn't too far off!

[@medarbi3675]

I have a question do I have to pay tax to HMRC if I live outside of the uk and don't have a base business in the uk thanks

[@HeelanAssociates]

Tax residency is a very complex topic, to much to answer in a comment sadly. In general though, as this comment is on a LTD video, if you are a UK company, then yes. If you mean as an individual ... far more complex, but a large determining factor is how many days you are in the UK each year.

[@essentialbrandings1242]

whats the cost to file my accounts? HMRC & CH

[@HeelanAssociates]

Here is a vid that can help with that question HOW MUCH DOES AN ACCOUNTANT COST IN 2020?kzbin.info/www/bejne/eWWuYYCfhNh8qLc

[@alexthurgood92]

Does a dormant company still have to submit all these files?

[@HeelanAssociates]

Hi Alex, we did a video on this here: kzbin.info/www/bejne/iXetc6l9bbSDqck

[@alexthurgood92]

@@HeelanAssociates Thanks! Just what I needed.

[@yurifedorov218]

video starts at 3:20

[@HeelanAssociates]

Cheers for the tip :)

[@1Carly]

Do you have to pay an accountant if the turnover is so low

[@HeelanAssociates]

Do you have to pay your hairdresser if you hair is short? 😀 Yes sadly whilst low turnover can impact some accountants pricing, there is a still work to be done so if you want their help they will charge. Taking a limited company as an example, in pure time it could easily take as long to do everything that’s needs doing for £1000 turnover than it does for £50,000.

[@1Carly]

@@HeelanAssociates Sorry let me rephrase. What i meant was...is it worth getting an accountant if turnover is literally nothing.

[@adjoaaj7593]

i thought there was free software to file all these?

[@HeelanAssociates]

It’s now technically possible, but we are yet to see it be used as you need accoutant knowledge to do the accounts that go with it. We have an updated video planned for later this year

[@kadri786]

Hi my company is a micro entity. Do i just need to file the micro entity accounts is there any other accounts i need to file? On the first year of forming the company I filed dormant accounts. I have submitted micro entity accounts for the 2nd year.

[@HeelanAssociates]

Did you have a tax return to submit? If you are trading it's likely you will need to file full accounts with your corporation tax return to HM Revenue & Customs

[@kadri786]

I have filed my micro entity accounts with company house. Do all companies need to file full accounts and coporation tax return?

[@sword2die755]

first

[@HeelanAssociates]

🎉

[@picturesquepakistan4095]

Why your in rush. Please explain speak slowly so non native can understand

[@HeelanAssociates]

Thanks for watching.

[@AhsanHaji]

You can watch at 0.5x if you can not keep with the normal speed of the speaker. You are getting such useful information for free so please show some gratitude rather than making rude comments.

[@ogsushi3663]

Can people commit fraud or play lies doing this because I suspect one of my neighbours is hardly making anything, he recently came from a European country ( 2 years) and he’s mostly at home, driving a 69 plate s class and has the best of items (funnily he’s the only one who rents the house too in our street) I am not putting him down or thinking I am better before anybody jumps to that conclusion, I just don’t understand how he can afford to live his lifestyle, when his business is dead, his own words and from what I’ve seen it is dead.

[@HeelanAssociates]

Yes fraud is an area that is possible. If you have evidence of fraud there is a mechanism for reporting it here www.gov.uk/government/organisations/hm-revenue-customs/contact/report-fraud-to-hmrc