Global Company Formation UK Ltd.
Ph: + 44 02079935929
Email: info@globalcompanyformation.co.uk
Suit 6- Westward House, Glebeland Road
Camberley Surrey, GU15 3DB, United Kingdom
 
Type Your UK Company Name
 
£50 CASH BACK
You can start a company in UK for just £9. We will happily refund you £50.00 if you open bank account through us
 

COMPANY FORMATION UK - BLOG

1. TAX RETURN TO BE FILES BY 31ST JANUARY 2017
You may need to file your tax return online if you have missed the deadline of 31st October, 2016 for filing your paper return. You will be filing your tax return for the tax period 6th April 2016 to 5th April 2016

Who needs to file Self Assessment:

If you are self employed
Employed persons whose income was over £100,000
Director of a Company
Partner in a partnership
Retired People who are on the registered pension scheme
If you got £2,500 or more untaxed income from renting out property or savings and investments-
Your savings or investment income was £10,000 or more before tax.
You made a profit on selling things like shares, a second home or other chargeable assets and need to pay Capital Gains tax.
If either your income or (your partner’s) was over £50,000 and one of you claimed Child Benefit
You had income from abroad that you needed to pay tax on
You lived abroad and had a UK income
You got dividends from shares
You were a trustee of a trust
Other people for example religious ministers or Lloyd’s underwriters
If the HMRC sends you a letter telling you to send a return then you must send your tax return.

To file your tax return you need to obtain your 10 digit UTR (Unique Taxpayer Reference). You can first register online to obtain your UTR. This can take up to 10 days
You can start by keeping your paper work in order so that you can get a few weeks before the deadline date. The penalty for filing late is £100 and can cost more. If you are confused about what information to add and how to fill in the details and the forms required follow our blogs for more information. You can also consider getting professional help

COMPANY FORMATION UK - £9
We provide our company formation package for only £9 and at no extra costs. At this competitive price you will receive
  • Assistance to get your Business Bank Account
  • Electronic Certificate of Incorporation
  • Electronic Copy of Memorandum & Articles of Association
If you are looking for a quick, easy and cheap company formation this package provides the basic necessary features for any company formation be it a limited, partnership or sole trader business, with no strings attached.

ACCOUNTING SERVICE AT £15 PER MONTH

Our service covers all that you will need to cover your accounting requirements.
Our experienced accountants and consultants will prepare your
  • Monthly Bookkeeping
  • Monthly Bookkeeping
  • VAT returns (if applicable)
  • Annual Accounts
  • Tax Advice
You can view the other benefits of hiring us at only £15 a month on compare product list.

TAX RETURN FOR ONLY £75
TAX RETURN TO BE FILED BY 31ST JANUARY 2017

You may need to file your tax return online if you have missed the deadline of 31st October, 2016 for filing your paper return. You will be filing your tax return for the tax period 6th April 2016 to 5th April 2016.

Who needs to file Self Assessment:
If you are self employed
Employed persons whose income is over £100,000
Director of a Company
Partner in a partnership
Retired People who are on the registered pension scheme
If you got £2,500 or more untaxed income from renting out property or savings and investments-
Your savings or investment income was £10,000 or more before tax.
You made a profit on selling things like shares, a second home or other chargeable assets and need to pay Capital Gains tax.
If either your income or (your partner’s) was over £50,000 and one of you claimed Child Benefit
You had income from abroad that you needed to pay tax on
You lived abroad and had a UK income
You got dividends from shares
You were a trustee of a trust
Other people for example religious ministers or Lloyd’s underwriters
If the HMRC sends you a letter telling you to send a return then you must send your tax return.
To file your tax return you need to obtain your 10 digit UTR (Unique Taxpayer Reference). You can first register online to obtain your UTR. This can take up to 10 days.
You can start by keeping your paper work in order so that you can get a few weeks before the deadline date. The penalty for filing late is £100 and can cost more. If you are confused about what information to add and how to fill in the details and the forms required follow our blogs for more information. You can also consider getting professional help. We provide our tax return service for you at only £75.

TAX RETURN FOR A PARTNERSHIP
The deadline to file your partnership tax return online is the 31st of January. Self assessment online deadline for individual partners is also the 31st of January. If any of the partners are a company the deadline for online returns is 31st January following the end of the tax year (or 12 months from the partnership’s accounting date if later). There is a penalty of £100 for filing late up to 3 months. It can cost more.
What to include in your Partnership Tax Return will depend on where the partnership is managed and controlled, whether the partnership has UK resident partners, non-resident partners or a mixture of both. You are a UK resident if you have lived in the UK for over 183 days with in the tax period 6th April to 5th April.
Where all the partners are resident in the UK

Where the partnership is managed and controlled in the UK the partnership tax return should also include the worldwide profits of the partnership apart from your UK profits. You can also include overseas income taxed in each overseas jurisdiction if any.

Where the partnership is managed and controlled abroad

Not ordinarily resident in the UK and/or domiciled in the UK partners may be entitled to be taxed on the remittance basis of taxation for their profits that arise overseas.
Non resident partners are only liable to tax on profits that arise in UK, although a corporate non-resident partner should return their share of overseas investment income which relates to a UK permanent establishment.
Where the partnership consists of a mix of UK resident and non resident partners and the partnership is managed and controlled outside the UK you need to include only the partnership’s UK profit in the Partnership Tax Return. The non-resident partners will put their share of the UK profit on their own tax return and the resident partners will include both UK profit and any overseas profits on their own tax return.
You may want to discuss and let a professional deal with your tax related matters. Click on our link for more information on how you can avail our service.

2. HOW TO FORM A SCOTTISH LLP UK? - SCOTTISH COMPANY FORMATION
Like a general partnership, Limited liability partnership must consist of two or more partners who carry on business with a view to profit. Scottish LLP is a unique vehicle. It has been used in the recent times for private equity and property investment fund structures. The Scottish LLP can be a main funds vehicle because: it can hold assets in its own name; there can be multiple but passive investors (the limited partners); only one person manages the investments and business of the partnership (the general partner).

1. Requirements:
  • At least one general partner.
  • One limited partner.
  • LLP Agreement: A limited liability partnership agreement sets out the details of the LLP, its members, their profit shares, capital contributions and, most crucially, the rules for leaving the LLP.
  • Management functions are only for general partner.
  • Limited partners are liable only to the extent of their capital contribution.
2. Advantages:
  • Separate legal entity: it can own its own assets, enter in to contracts, sue or be sued, own property, borrow money and grant certain types of security.
  • Tax transparency: no tax is payable by Scottish LLP itself. Instead UK tax authorities will look through the partnership structure and partners are taxed on their profit sharing ratio.
  • Limited management participation: management and control rests with general partner or manager appointed by the general partner.
3. Cost: cost forming Scottish LLP in UK is £60.
4. Can non-UK resident be a partner in Scottish LLP?
  • Yes, a non- UK resident can be a partner in Scottish LLP.
  • The tax rate for a company will depend on the residence of a partner.
  • If your partner is a resident of UK then he or she will have to pay tax on their shares of profits in UK.
  • If the partners are not residents in UK and do not conduct any business in the country, they will not pay any tax in UK only at their own jurisdiction.
5. HOW CAN WE HELP YOU?
We, the Global company formation UK Ltd is a very cost effective business consultancy firm that offers company formation UK, business consultancy, accounting and taxation services. We have a fully-fledged and experienced team of UK qualified accountants, business consultants and IFAs who will guide you from the formation of your company to running it successfully. We will take care of all your administration, accounting and taxation and you can concentrate on your business domain. We offer Scottish LLP UK, form a Scottish LLP UK, cheap Scottish company formation, Scottish company formation UK, form a Scottish company in UK and Scottish accounting services UK. Global Company Formation UK ltd covers Scottish LLP formation services at Greenwich, Hackney and Hammersmith and Fulham.

3. HOW TO REINSTATE A COMPANY AT UK?
A company can only apply to Companies House to get their company restored (known as ‘administrative restoration’) if:
 
  • He/she was a director or shareholder
  • it was struck off the register and dissolved by the Registrar of Companies within the last 6 years
  • it was trading at the time it was dissolved
Otherwise a court order is needed to get the company restored.
HOW TO APPLY FOR RESTORATION?
  • A completed form RT01
  • A cheque for £100, payable to ‘Companies House’
  • any outstanding documents
  • any filing fees or penalty payments
  • if your company had assets, a waiver letter from Bona Vacantia

WHAT HAPPENS NEXT?
If the application has been successful, the company will be restored as soon as the registrar sends a confirmation letter.
If the application is refused, then:
  • Apply for a court order to have the company restored.
  • Get a discretionary grant (if you were a shareholder and need to claim some money back).
HOW CAN WE HELP YOU?

We, the Global company formation UK Ltd is a very cost effective business consultancy firm that offers company formation UK, business consultancy, accounting and taxation services. We have a fully-fledged and experienced team of UK qualified accountants, business consultants and IFAs who will guide you from the formation of your company to running it successfully. We will take care of all your administration, accounting and taxation and you can concentrate on your business domain. Global company formation Ltd covers reinstating company services in Oxford, Canterbury, Westminster, Wandsworth, Waltham Forest.

4. HOW TO STRIKE-OFF A COMPANY IN UK
 

  • Only if it hasn’t traded or sold off any stock in the last 3 months
  • Hasn’t changed names in the last 3 months
  • Has no agreements with creditors eg, A Company Voluntary Arrangement (CVA);
If a company doesn’t meet these conditions, you’ll have to voluntarily liquidate your company instead. When you apply to ‘strike off’ your company, there are certain steps to follow.

STEPS TO FOLLOW FOR STRIKE OFF
Before applying to strike off your limited company, you must:
  • Intimate your plans to interested parties and HM Revenue and Customs (HMRC) regarding company strike off.
  • You’ll need to tell HMRC that your company has stopped employing people.
  • The business assets are shared among the shareholders before the company is struck off.
Final accounts
  • Prepare and File your final statutory accounts and company tax return, to HMRC stating that these are the final trading accounts and that the company will soon be dissolved. You don’t have to file final accounts with Companies House.
  • Pay all Corporation Tax and any other outstanding tax liabilities.
Keeping records
You must keep business documents for 7 years and copies of its employers’ liability insurance policy and schedule for 40 years from the date the company was dissolved.
Apply to strike off
To apply to strike off your limited company, you must send Companies House form DS01 which must be signed by a majority of the company’s directors. You should deal with any of the assets of the company before applying and it costs £10 to strike off a company.
What happens Next
You’ll get a letter from Companies House if you’ve filled in the form correctly and your request for the company to be struck off will be published as a notice in your local Gazette. If nobody objects, the company will be struck off the register once the 2 months mentioned in the notice has passed.
HOW CAN WE HELP YOU?
We, the Global company formation UK Ltd is a very cost effective business consultancy firm that offers company formation, business consultancy, accounting and taxation services. We have a fully-fledged and experienced team of UK qualified accountants, business consultants and IFAs who will guide you from the formation of your company to running it successfully. We will take care of all your administration, accounting and taxation and you can concentrate on your business domain. Global company formation Ltd covers company strike off services in Lambeth, Salisbury, Hastings, Leeds, Lewisham and Merton.

5. SELF EMPLOYMENT OPTIONS IN UK
1. Limited Company in the UK

A limited company can be formed by one director and he can be anywhere in the world.
This is a reputed model of company formation in the UK followed by nurses, plumbers, doctors, taxi drivers, carpenters, construction workers, therapists, teachers, carers, home nurses, etc. This structure is also followed by big companies in the UK. You can deduct all the allowable expenses from its gross revenue and you will need to pay tax only on the net income. The current tax rate is 20% on net income up to £300,000.
The formation of a limited company is a simple process, it costs only £13.
Tax is paid within 9 months after the accounting period.
The director’s withdrawal on dividends he will pay tax for any amount above £5000 at a basic rate of 7.5% or a higher rate of 32.5%.
This is an effective tax planning vehicle if the dividend withdrawals are kept at a minimum and all the income is reinvested to develop your business.
Partnership

(a) Unlimited Liability
A partnership is an excellent way to start business through a simple process and invite more capital.
Partnership can claim all allowable expenses from their gross revenue. The net revenue is divided among the partners who pay the tax as per the following slab.
Tax Rate      Income
0%             available allowance up to £11,000
20%           £11,001 up to £43,000
40%           £43,001 up to £150,000
45%           on income above £150,000

(b) Limited Liability
You can set up a limited liability partnership (LLP) to run a business with 2 or more members.
A member can be a person or a company, known as a ‘corporate member’.
Each member pays tax on their share of the profits, as in an ‘unlimited liability’ partnership, but isn’t personally liable for any debts the business can’t pay.
A limited liability partnership is a unique vehicle. One of the partners can be a non resident UK partner.

2. Sole Employed You need to register with the HMRC as a self employed person and maintain proper books to record income and expenses to calculate profits.
You can deduct all allowable expenses from your gross revenue to obtain the net taxable income. From this you can deduct the allowance of £11,000 to obtain the taxable income.
You will also pay National Insurance Class 2 of £2.80 per week and Class 4, 9% on profits between £8,060 and £43,000 and 2% on profits over £43,000.
You must file a self assessment tax return every year.

3.Payroll Process
This is another option where your employer can pay your taxes and national insurance. You will receive your wage slips through your employer after deduction on national insurance and tax.
Your tax will be deducted monthly.
You can claim all your allowable expenses such as uniforms, professional equipment, postage and printing, stationery, professional subscription, advertising and marketing, mileage expenses, parking costs, training cost, etc.

HOW CAN WE HELP YOU?
We, the Global Company Formation UK Ltd is a cost effective business consultancy firm that offers company formation UK, business consultancy, accounting and taxation services. We have a fully-fledged and experienced team of UK qualified accountants, business consultants and IFAs who will guide you from the formation of your company to running it successfully. We will take care of all your administration, accounting and taxation and you can concentrate on your business domain. We cover services for self-employed options in the following places UK, London, Edinburgh, Liverpool, Belfast, Croydon and Ealing.

6. DORMANT COMPANIES IN UK
A company or association may be ‘dormant’ if it’s not doing business (‘trading’). The dormant period stops when you start trading again.

1. WHEN DOES A COMPANY BECOME DORMANT FOR CORPORATION TAX?
Your business is usually considered dormant for Corporation Tax if it:
  • Has stopped trading
  • Is a new limited company that hasn’t started trading
  • Is an unincorporated association owing less than £100 Corporation Tax
  • Is a flat management company
Being dormant for Corporation Tax means you don’t have to pay Corporation Tax or send (‘file’) a Company Tax Return unless you get a ‘notice to deliver’ one.

2. WHEN HMRC THINKS A BUSINESS IS DORMANT?
  • You may get a letter from HMRC telling you:
  • They’ve decided to treat your company or association as dormant that you don’t have to pay Corporation Tax or file Company Tax Returns (unless you start trading again).
1. WHEN DOES COMPANIES HOUSE THINK THAT YOUR BUSINESS IS DORMANT
Your company is called dormant by Companies House if it’s had no ‘significant’ transactions in the financial year that you’d normally report.
Significant transactions don’t include:
  • Filing fees paid to Companies House
  • Penalties for late filing of accounts
  • Money paid for shares when the company was incorporated
4. WHAT SHOULD YOU DO WHEN YOUR BUSINESS IS DORMANT?
  • Communicate with HMRC and file Dormant with the Companies House.
  • If the company does trading and then becomes dormant, communicate and file tax return with HMRC till your trading period ends and then file the company as dormant.
HOW CAN WE HELP YOU?
We, the Global company formation UK Ltd is a very cost effective business consultancy firm that offers company formation UK Blog, business consultancy, accounting and taxation services in London, UK. We have a fully-fledged and experienced team of UK qualified accountants, business consultants and IFAs who will guide you from the formation of your company to running it successfully. We will take care of all your administration, accounting and taxation and you can concentrate on your business domain. Global Company Formations UK Ltd covers dormant accounting services at London, Keswick, Sheffield, Windermere, Rye, Barnet, Bexley and Brent.

7. Limited Company UK-Director and Shareholder Information
Limited Company Directors and Shareholders

Directors:

A director of a limited company is responsible for the management of the company. The shareholders appoint directors to see to the day to day running of the business.
Directors often own shares in the company they work for:
When two or three people start a company together, they often see themselves as partners in the business. Usually, they will allocate shares to themselves and appoint themselves as directors. However, they should always be aware of the different roles of directors and shareholders.
Many large companies issue shares to directors and key employees, as part of a bonus package. Some companies insist that their directors buy shares in the companies they manage. Share ownership is intended to align directors’ interests with that of their employers; the other shareholders.
Who can be a director?

Anyone can be a director subject to the following:

 
  • They must be at least 16 years of age.
  • They are not disqualified by a Court Order.
  • They are not an undischarged bankrupt.

It is also worth noting that:
 
  • A director does not need to be a UK resident
  • A corporate body can be a director, but a company requires at least one human director.

Information about directors

Companies House needs the following information about each director:
  • First Name
  • Last name
  • Director’s service address, if different from home address.

If the director is a corporate body, the following information is required:
 
  • First and Last name of authorised person
  • Name of Company or organisation
  • Registration Number
  • Place registered
  • And, if it is resident in a Non-EEA member state:

o The law that governs it.
o The Legal Form of organisation.

And, to deal with the absence of a signature, the answers to 3 authentication questions, taken from any of the following:
  • 1-mother’s maiden name- the first 3 letters
  • 2-father’s first name-the first 3 letters
  • 3-Colour of eyes-the first 3 letters
  • 4-telephone number-the last 3 digits
  • 5-town of birth-the first 3 letters
  • 6-National insurance number- the last 3 digits
  • 7-Passport number-the last 3 digits

Director’s Service address

Companies House will publish an address for a director, on their web site. Publication enables official notices and correspondence to be sent to directors. However, publication means that a director’s address is no longer private. In order to allow directors to retain their privacy, Companies House will also accept a service address. It is the service address that will be published. We offer directors a FREE service address, if their Company is using our Registered Service.
Who is a Shareholders?

Companies are jointly owned by their shareholders, who are also known as members. A shareholder’s stake in a company is represented by the number of shares (units of ownership) he owns.
Unless sanctions apply, almost anyone has the legal capacity to be a shareholder in a UK registered limited company.
Individuals, trusts, partnerships, other corporate bodies and Governments, wherever resident, can be shareholders.

Subscribers The first shareholders are the subscribers to the company’s memorandum of association. They agree to buy the number of shares allocated to them.

There are 3 ways to become a shareholder in a company:

• By subscription to the Memorandum of Association when forming a new company.
• By gift or purchase of shares from another shareholder.
• By subscription to a new issue of shares by the company.

The information required:

• First Name
• Last name
• Full postal address
To deal with the absence of signatures in the online process the 3 authentication questions same as above can be selected.

8. Limited Company- Registered Office Address UK
Your registered office address is where official communications will be sent, for example letters from Companies House and HM Revenue and Customs (HMRC).
The address must be:
• A physical address. You can use a PO Box but must include a physical address and postcode after the PO Box number.
• in the same country your company is registered in, for example a company registered in Scotland must have a registered address in Scotland
• You can use your home address or the address of the person who will manage your Corporation Tax if these addresses meet the rules above.
• Your company address will be publicly available on the register.
If you wish to keep your home address private you can use our registered office address service. The office address is located at Surrey for only £60.

Change of Registered Address
You must tell Companies House if you want to change your company’s registered office address. If the change is approved, they will tell HM Revenue and Customs (HMRC).
Your company’s new registered office address must be in the same part of the UK that the company was registered (incorporated).
For example, if your company was registered in England and Wales, the new registered office address must be in England or Wales.
Your address won’t officially change until Companies House has registered it.
You can submit form AD01 online to change your registered office details.
9. UK Limited Company- Director Responsibilities If you have set up a limited company, there are a number of duties you will have for e.g. legal and financial responsibilities, if you are a director of a company. The Companies Act of 2006 outlines some of the duties of a company director
Duties of limited company directors
  • Duty to act within your powers as a company director
  • Duty to promote the success of your company
  • Duty to exercise independent judgement
  • Duty to exercise reasonable care, skill and diligence
  • Duty to avoid conflicts of interest
  • Duty not to accept benefits from third parties
  • Duty to declare interest in proposed transaction or arrangement with the company
Financial responsibilities
As a company director, you have several accounting-related obligations. Although you should employ a business accountant to perform all (or most) of these tasks, you are ultimately responsible to ensure that all tasks are carried out:
  • Keep good accounting records from which accounts can be prepared which give a true and fair representation of the financial position of the company.
  • You must submit accurate company accounts, and file them on time with Companies House.
  • You must submit your corporation tax return (Form CT600) to HMRC and pay any tax liabilities due.
  • You must deal with the correct payment of staff (and yourself) – including the deduction of income tax and national insurance contributions, where they apply.
  • You must trade solvently, ensuring that you are able to meet the financial liabilities of your business. Legal responsibilities of company directors
  • You are responsible for completing and filing a Confirmation Statement or annual statement every year as it was previously called.
  • To produce and maintain a register of Persons with Significant Control (also known as a “PSC register”). The PSC Register must be filed, as part of the Confirmation Statement, with Companies House annually.
  • To submit forms to Companies House to notify of any changes in the particulars of company director(s) or company secretary.
  • Notify Companies House if you change your registered company address.
  • You must always act in the interests of the company shareholders. This means that the directors cannot enrich themselves in a way that damages the company.
10. UK Limited Company- Registration Details You can register your company online and it takes approximately 4 hours to complete. The information you will require is your company name, Directors’ name, address, date of birth, the details of the Persons with Significant Control.
You will also require a Memorandum and Articles of Association.
Memorandum and articles of association
When you register your company you need:
  • a ‘memorandum of association’ - a legal statement signed by all initial shareholders agreeing to form the company
  • ‘articles of association’ - written rules about running the company agreed by the shareholders, directors and the company secretary
You can use our standard articles and memorandum of association while you complete the company formation process through our website.
11. UK Limited Company- Taking Money Out If you want the company to pay you a salary, expenses or benefits, you must register the company as an employer with HM Revenue and Customs
The company must take Income Tax and National Insurance contributions from your salary payments and pay these to HMRC, along with employers’ National Insurance contributions.
If you or one of your employees makes personal use of something that belongs to the business, you must report it as a benefit and pay any tax due.
Dividends
A dividend is a payment a company can make to shareholders if it has made enough profit.
You can’t count dividends as business costs when you work out your Corporation Tax.
Your company mustn’t pay out more in dividends than its available profits from current and previous financial years.
You must usually pay dividends to all shareholders.
To pay a dividend, you must:
  • hold a directors’ meeting to ‘declare’ the dividend
  • keep minutes of the meeting, even if you’re the only director
Dividend paperwork
For each dividend payment the company makes, you must write up a dividend voucher showing the:
  • date
  • company name
  • names of the shareholders being paid a dividend
  • amount of the dividend
You must give a copy of the voucher to recipients of the dividend and keep a copy for your company’s records.
Tax on dividends
Your company doesn’t need to pay tax on dividend payments. But shareholders may have to pay Income Tax if they’re over £5,000.
For dividends above £5000, one will pay at a basic rate of 7.5% for dividend up to £32,000 and a higher rate for dividend up to £43,000.
12. Corporation Tax
You must pay Corporation Tax on profits from doing business as:
  • a limited company
  • any foreign company with a UK branch or office
  • a club, co-operative or other unincorporated association, eg a community group or sports club
You don’t get a bill for Corporation Tax. There are specific things you must do to work out, pay and report your tax.
  • Register for Corporation Tax when you start doing business or restart a dormant business.
  • Keep accounting records and prepare a Company Tax Return to work out how much Corporation Tax to pay.
  • Pay Corporation Tax or report if you have nothing to pay by your deadline - this is usually 9 months and 1 day after the end of your ‘accounting period’.
  • File your Company Tax Return by your deadline - this is usually 12 months after the end of your accounting period.
Your accounting period is normally the same 12 months as the financial year covered by your annual accounts.
Profits you pay on Corporation Tax
Taxable profits for Corporation Tax include the money your company or association makes from:
  • doing business (‘trading profits’)
  • investments
  • selling assets for more than they cost (‘chargeable gains’)
If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad.
If your company isn’t based in the UK but has an office or branch here, it only pays Corporation Tax on profits from its UK activities.
13. Making Tax Digital
At the March 2015 Budget, the government had set out the vision for a transformed method of paying tax and the tax return.
Making Tax Digital sets out how this bold vision for the future of the tax system will be achieved by 2020 through the transformation of HM Revenue and Customs (HMRC) into one of the most digitally-advanced tax administrations in the world.
Making Tax Digital will represent significant changes to the way in which the tax system will operate. These changes will put customers at the heart of what HMRC does going forward. The government has been introducing them gradually between 2018 and 2020, because they know how important it is to get them right and to give individuals and businesses time to adapt.
Easing the transition to digital
A number of changes are being made to the proposed design to ease the transition to a digital tax system.
Some of the key changes include:
  • removing more of the smallest businesses from the requirement to keep digital records and update quarterly. We will exempt all unincorporated businesses and landlords with a turnover under £10,000 a year
  • referring the start of Making Tax Digital for some other small businesses, giving them extra time to get used to digital record keeping and quarterly updating
  • exempting digitally excluded businesses from digital record keeping and quarterly updating
  • ensuring flexibility for how businesses manage their accounts and introducing simplifications, for example extending cash basis accounting to more businesses
The digital tax system tries to keep the system as easy and simple as possible.
14. HOW TO DISSOLVE A UK LIMITED COMPANY
A company usually need to have the agreement of their company’s directors and shareholders to close a limited company. The way to close the company depends on whether it can pay its bills or not. Striking off the company is usually the cheapest way to close it. The Company don’t have to close if it’s no longer trading, they can let it become ‘dormant’ for tax as long as it’s not. Company can keep a limited company dormant for as long as they want.
The best method applicable to closing down a limited company depends on whether that company is solvent or insolvent (i.e. whether it still has outstanding debts).
If you company can pay its bills (‘solvent’)
I. Apply to get the company struck off the Register of Companies.
You can close down your limited company by getting it ‘struck off’ the Companies Register, but only if it:
  • hasn’t traded or sold off any stock in the last 3 months
  • hasn’t changed names in the last 3 months
  • isn’t threatened with liquidation
  • has no agreements with creditors, eg a Company Voluntary Arrangement (CVA)
If your company doesn’t meet these conditions, you’ll have to voluntarily liquidate your company instead.
When you apply to ‘strike off’ your company, you have certain responsibilities to close down your business properly.
II. Start a members’ voluntary liquidation
Striking off the company is usually the cheapest way to close it.
The company can’t pay its bills (‘insolvent’)
When your company is insolvent, the interests of the people your company owes money to (its creditors) legally come before those of the directors or shareholders.
You must use the creditors’ voluntary liquidation process.
Your company might be forced into compulsory liquidation if you don’t pay creditors.
You may be able to avoid liquidation by applying for a Company Voluntary Arrangement.
You can also allow your company to be dormant for tax as long as it’s not-
  • carrying on business activity
  • trading
  • receiving income
The company will still be registered at Companies House and you must still send your annual accounts and confirmation statement to Companies House.
15. Appointing directors

Must a company have directors, and if so, how many?
Every limited company must have at least one director. If a limited company has only one director, he or she must be a human person - not another company. A public limited company (or “plc”) must have at least two directors.
Who appoints directors and what is the process?
Most commonly, directors are appointed by the shareholders at the Annual General Meeting (AGM), or in extreme circumstances, at an Extraordinary General Meeting (EGM). A resolution for the appointment is put to a vote, and passed if a majority of shares are voted in favour.
When a vacancy arises unexpectedly, the remaining directors may appoint a new director temporarily. His appointment must be confirmed by the shareholders in general meeting as soon as possible. This would be appropriate for example, on the death of a director who represented an institutional lender-shareholder.
The shareholders, or an appointed committee of them, may delegate the power to appoint a new director to the existing directors.
The process for appointing new directors is usually recorded in the company's articles of association. It is not the same in all companies. The number of directors may be limited by the articles of association, so that a new director may be appointed only if a vacancy arises.
The company must notify Companies House within 14 days after a new director is appointed. The easiest way to do this is to use the CH WebFiling service. Alternatively, form AP01 or AP02 could be used.
Removing directors
A director holds office at the wish of the shareholders. He can be removed by a 50% vote at a meeting of the shareholders. The meeting need give no reason. A single majority shareholder automatically carries over 50% so he alone can remove a director.
This right cannot be taken from them by anything contained in the director's service contract or in the Articles of Association. However, if a removal is in breach of the director’s service contract, or the terms of a shareholders’ agreement, he will have a right to damages if he chooses to go to court.
Common reasons are:
• disqualification under the law
• bankruptcy
• mental disorder under the Mental Health Act 1983
• breach of his service contract
• his resignation from office or
• absence from a board meeting for a consecutive period of six months

A director may be removed from office in one of the following ways:
Removal by ordinary resolution
Any member wanting to propose a resolution to remove a director must give the company 'special notice', (a formal notice setting out his request) at the registered office of the company at least 28 days before a general meeting. The directors may try to frustrate the members' intention by not calling a general meeting at all.
In this situation, a member who owns at least 10% of the voting shares in the company can request an extraordinary general meeting at which the proposal is put to the vote.
Whenever the company receives special notice of a resolution to remove a director, the board must ensure that the director concerned is informed immediately. That director has the right to make written representations to the members. He may also speak at the meeting.
Retirement by rotation
At each annual general meeting of the company, one-third of the total number of directors must retire from office and be subject to re-election. Shareholders can remove a director from the board simply by failing to re-elect him. Executive directors, however, are exempt from this requirement.
Disqualification by the court
The Court has power to disqualify a person from holding the office of director. It can also remove the disqualification.
Usually, to be disqualified by the Court, a director must be shown to be incompetent to hold the post. Examples are:
conviction for an offence related to running a company; or persistent failure to comply with rules for filing documents at Companies House.
Under the company's articles of association
A company's memorandum and articles of association can also specify circumstances when a director may be disqualified. This is unusual and it is not recommended that articles be edited to make any such provision. It is easy to remove a director without reference to the articles.
Process to be followed when someone stops being a director
The remaining directors must notify Companies House within 14 days of the removal, retirement or resignation of a director.
Form TM01 could be used, or the CH WebFiling service.
There may be a procedural requirement in the company articles of association too.

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