Declaring a new Ltd company to HM Revenue & Customs
Jamie Evans started this topic @ 14:11 on 29/01/2010
Hi,
New to the forum - hopefully someone kind out there can help with this! I've (very) recently incorporated my pre-existing general partnership as a private limited company.
My first question is, how do I go about declaring the existence of the company to HM Revenue and Customs?
Secondly, do I need to set up a new bank account for the business, or can I continue to use the account from the pre-existing partnership?
Thanks!
Jamie
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RE: Declaring a new Ltd company to HM Revenue & Customs
Rally | 29/01/2010 07:29 PM
Hi Jamie,
If you have an accountant they can inform hmrc, but with ltd's, hmrc will eventually get in touch with you so you dont need to register or notify them.
it would be wise to open a new account otherwise there can be tax implications if income has been going in the account.
hope this helps
need anymore help email me
ray
raihan@bbkca.com
chartered accountants
RE: Declaring a new Ltd company to HM Revenue & Customs
prakask | 30/01/2010 11:24 AM
Try to open a new bank account as it would be beneficial.
You should register to the HMRC or even your accountant can notify it to HMRC.
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Rahul
RE: Declaring a new Ltd company to HM Revenue & Customs
Ian J | 30/01/2010 12:42 PM
You have to open a new bank account as a limited company is a completely different legal entity to a sole trader or partnership.
If you intend to start trading straight away it would be adviseable to telephone HMRC to tell them that you are now in business as you run the possibility of penalties if you don't tell them within a certain period.
They do tend to be quite helpful with new companies
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Ian
Factoring ,
Invoice Discounting ,
Trade Finance and
Asset Finance specialist broker.
Founder member of
Independent Factoring Brokers Association
RE: Declaring a new Ltd company to HM Revenue & Customs
RM Business Consultant | 30/01/2010 01:59 PM
HI Jamie
Limited company is a legal entity, so it should have its own bank account, otherwise it would be cumbersome to reconcile.
Limited company have a obligation to inform, the HMRC within three months of coming into trade i.e. starting trading. You do this by filling in form CT41G. Generally, HMRC would send introductory pack within 6 weeks of incorporation.
There are penalties for not providing it which can be as much at £300 plus a continuing daily penalty of £60 for every day that the information remains outstanding. There can also be a penalty of up to £3,000 if the company fraudulently or negligently gives incorrect information.
Also if you incorporated your partnership, then you need to sell your old business to limited company. You may be able to sell your goodwill and take advantage of tax relief but it would depend on when your partnership started trading.
Other stuff you need to take care is that you need to dissolve old partnership and file its tax return and inform HMRC in good time to stop receiving the tax return.
If you have not got an accountant find one who is on the ball on incoporation of sole trader/ partnership business.
HTH
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Surrey & London
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