Company Formation with Bank Account

By law, a company that has been registered with Companies House has to fill out a form that stipulates the annual returns of a company by a specified deadline each year. There are very meticulous guidelines concerning the accuracy of these records, as there is usually a requirement for the information to be uploaded onto the Internet for anyone to view should they feel the need to.

You should know if your business needs to file annual returns – if you have incorporated your company with Companies House, or you are a limited liability partnership, you fall into the category of the 2 million or so entities that need to provide these records each and every year. A common misconception is that businesses and sole traders may need to file annual returns, too: however, this is not the case. All of the matters that concern taxation and national insurance with unincorporated businesses are handled through HM Revenue and Customs.

Another way that Companies House will remind those who need to fill annual returns is by sending out a letter to the designated address that was specified upon incorporation. This letter usually gives a company two options – to either complete the returns via post, or to register online to file the returns through the Companies House website. The fact that four-fifths of all businesses use the latter in order to set the record straight could be regarded as testimony to how simple the process is.

Things to consider before filing your business’ annual returns online include that you have put in all of the necessary information, and that the data you have inputted is correct. If you are inserting long numerical codes, it can be easy to make an error which can set you back a small fortune, resulting in the need to complete the returns again. Also, certain types of companies, like those with share capitals for example, may need to provide additional information when they file their forms.

All of the necessary forms needed in order to complete this bit of administration electronically are available to you online, with the reduced fee associated with sending the return incentivising many businesses to go digital with this formality.

The deadlines for annual business returns vary, and this can ensure that there is a constant supply of data for Companies House to be dealing with, in contrast to being bombarded with a lot of filing all at once. Most companies are due to send a returns form to Companies House by the anniversary of the date that the company officially became incorporated. So for example, if Joe Bloggs’ company, ‘Business Ltd.’, became active on the 1^st of January 2009, he would be due to file an annual business return by the 1^st of January 2010 – and on the 1^st of January every year after that.

As much of a hindrance that it may seem, it is a legality which has to be done. Sometimes, this process can be quite advantageous to your company anyway, as it can allow you to get a better idea of how things are progressing within your organisation.