What are my responsibilities as a Limited Company Director?
You have administrative responsibilities throughout the financial year that must be adhered to in order for your business to be operational. It is pivotal you have an understanding of this, especially in the early days of running your business.
In this article, we will cover the basic requirements of being a director of a limited company.
Company Accounts
These are the financial statements and records of your company. These accounts provide an overview of a company's financial performance, position, and cash flows over a specific period of time, typically a fiscal year. The main components of company accounts include the balance sheet, income statement (also known as profit and loss statement), cash flow statement, and notes to the financial statements.
- Balance sheet: It presents the company's assets, liabilities, and shareholders' equity at a specific point in time, showing the financial position of the company.
- Income statement: This statement shows the company's revenues, expenses, gains, and losses, revealing the net income or loss for the period.
- Cash flow statement: It illustrates the company's cash inflows and outflows, providing information about the sources and uses of cash during the period.
- Notes to the financial statements: These are additional explanations and details that accompany the financial statements, providing further insights into the company's financial performance and position.
Company accounts are essential for various stakeholders, including shareholders, investors, creditors, and regulatory authorities, as they help assess the company's financial health, profitability, and compliance with accounting standards and regulations.
These should be filed within certain time periods:
- File within 9 months of the end of the financial period (private)
- File within 6 months of the end of the financial period (public)
Legal and Regulatory requirements
Compliance with legal and regulatory requirements: A company director must adhere to various legal and regulatory requirements, including company law, tax law, health and safety regulations, and employment law, among others.
Tax documentation should be filed within certain time periods:
- File tax return within 12 months of the end of the tax year
Miscellaneous
- Fiduciary duty and duty of care: A director must exercise their powers in good faith and in a manner that promotes the best interests of the company. They must also act with due care, skill, and diligence, and avoid conflicts of interest.
- Strategic planning and decision-making: A director must participate in setting the company's strategic direction, making significant business decisions, and ensuring that the company's operations are aligned with its goals and objectives.
- Leadership and management: A director must provide leadership and direction to the company's management team, monitor their performance and accountability, and manage risks and opportunities.
FAQs
What is a confirmation statement?
You must file a confirmation statement to HMRC to let them know nothing has changed within your company in terms of address, company’s business function, etc. You must file within 14 days of the end of your review period (12 months after your incorporation date). This is something you have to file annually.
Can I file through Taxd?
By filling out your company details we can easily generate a tax return for you. It is a simple process which will save you time and more importantly money!
Can I file company accounts myself?
You can, but you’d need software to file the corporate tax return to HMRC. So we recommend using software that will file both for you.
Related resources
Split year treatment applies to individuals who move into or out of the UK partway through a tax year. The tax year in the UK runs from April 6 to April 5 the following year.
As a company director, you have administrative responsibilities throughout the financial year that must be adhered to in order for your business to be operational. It is pivotal you have an understanding of this, especially in the early days of running your business.
Deciding how much to pay yourself as a company director can be a hard decision to make. There are many factors to consider, the financial health of the business, your expenses as well as the future of the business.
