08/04/2023
In law, a company is a person and the directors are its parents.
Directors who fail to carry out their parental duties are punished.
These are legal implications of forming a company and the penalties your will receive for not complying with the law.
1. Under company law a Limited Company must submit a confirmation statement to Companies House on the anniversary of its birth. Failure to meet the deadline will incur a fine of £140. You can decide to do nothing, in which case your company will be struck off and the company’s bank account will be ceased by HMRC and your personal credit rating will be damaged, making it very difficult to obtain a bank loan or mortgage.
2. Tax law rides on top of company law, shortly following its birthday HMRC will send you a letter informing you that a corporation tax return is required. You have up to 9 months to submit the return, if you are late, you will be fined £100 and if the company needs to pay tax there will be a late payment penalty of £400 plus interest.
So, I urge you to be a good parent and not to incur needless expense.
