First-year deadlines for a new UK limited company

What happens when a company is incorporated?

Incorporation is the day Companies House registers your company. GOV.UK explains the steps in its guide to setting up a private limited company. From that day the company exists as a separate legal person.

Most first-year deadlines are counted from the date of incorporation. Keep the certificate of incorporation somewhere safe, because you will need the date and company number often.

Companies House also sets an accounting reference date when the company is formed. This is the date your financial year ends each year, and it drives several deadlines below.

When does a new company register for Corporation Tax?

GOV.UK says companies are offered the option to set up Corporation Tax when they register with Companies House. If you skip that option, you add Corporation Tax to your business tax account later.

A company that is not yet doing business is usually treated as dormant for Corporation Tax. Once it starts trading, HMRC needs to know within a set period of that start date [VERIFY WITH HMRC / ADAM].

The date you start trading matters. It can differ from the date of incorporation, and it changes how the first tax periods are worked out.

Why is the first accounting period often unusual?

GOV.UK guidance on first accounts and the first Company Tax Return says first accounts usually cover more than 12 months [VERIFY WITH HMRC / ADAM]. They run from the day the company was set up to the accounting reference date.

A Company Tax Return cannot cover more than 12 months [VERIFY WITH HMRC / ADAM]. So a long first accounts period may need two tax returns, each with its own payment deadline.

This catches many founders out. You may have one set of accounts, two tax returns and two payment dates in your first cycle. After that, things usually settle into one return per year.

When are the first accounts due?

First accounts go to Companies House, and the deadline is counted from the date of incorporation [VERIFY WITH HMRC / ADAM]. Later accounts are due a set time after each accounting reference date [VERIFY WITH HMRC / ADAM].

The Company Tax Return goes to HMRC and has its own filing deadline. Corporation Tax is often payable before the return itself is due [VERIFY WITH HMRC / ADAM].

Companies House and HMRC deadlines are separate. Meeting one does not meet the other, and each can charge its own penalty for lateness.

What is a confirmation statement?

A confirmation statement tells Companies House that the information it holds about your company is up to date. It covers details such as directors, shareholders and the registered office.

Every company must file one at least once a year, counted from incorporation [VERIFY WITH HMRC / ADAM]. GOV.UK lets you file your confirmation statement online and sign up for reminders.

Does a new company need PAYE or VAT registration?

If the company will pay anyone, including you as director, it may need to register as an employer. GOV.UK says you must register before the first payday. It also says you cannot register too far in advance [VERIFY WITH HMRC / ADAM].

VAT registration depends on turnover. You must register once taxable turnover goes over a threshold over a rolling period [VERIFY WITH HMRC / ADAM]. GOV.UK explains when to register for VAT, and you can also register voluntarily below it.

Whether payroll or VAT makes sense in the first year depends on your plans. AFE reviews the facts before suggesting either.

What about the director’s own tax return?

The company and the director are taxed separately. GOV.UK sets out the responsibilities of a company director, and they stay with you even if an accountant does the work.

Many directors also need to file a personal Self Assessment return. This can depend on whether you take dividends or have other income [VERIFY WITH HMRC / ADAM]. The personal return has its own deadlines, separate from the company’s.

What records should a new company keep from day one?

Good records make every deadline above easier to meet. Directors must keep company records, and GOV.UK says that duty stays with you even if you hire an accountant.

Open a separate business bank account as soon as you can. Mixing personal and company money makes the first accounts slower to prepare and harder to check.

• Sales invoices and receipts for every cost the company pays.
• Bank statements for each company account.
• Records of any money you lend to or take from the company.
• Payroll records, if the company pays salaries.
• Minutes of board decisions, such as dividends.

What are the main first-year deadlines?

The table shows the usual pattern. Your own dates depend on your incorporation date, trading start date and accounting reference date, so check each one.

The timings above are a general guide only. Check each date on GOV.UK or with your accountant before you rely on it.

How can AFE help in the first year?

AFE Accountants works with founders of new companies across the UK. AFE is led by Adam Feyzi FCCA, a Fellow of the ACCA.

The business start-ups service covers formation, structure, tax registrations and first-year deadlines. The company secretarial service covers confirmation statements and Companies House filings.

You can read more on the business owners page. The first consultation is free, and you can book it here.