Company registration number

Companies House issue company registration numbers to every limited company incorporated in the United Kingdom. Your company registration numbers are an unique to your company. It is also known as company incorporation number or company number. Your company registration numbers is an official identification number for your company. In other words, it is your company’s ID.

It is also known as company incorporation numbers or company numbers. Your company registration numbers is an official identification number for your company.

Format of company registration numbers

The table below show company registration number format correspond with the company’s country of registration in the United Kingdom at a glance.

Co. with registered office inCo. incorporation numbers format
England and Wales 01234567
Scotland SC123456
Northern Ireland NI123456

First of all, limited company with registered office address in England or Wales shall have 8 digits numbers starting with zero as its company incorporation number. For example, Fine Arts and Pictures Limited has a company registration number 08409295.

Secondly, limited company with registered office address in Scotland has slightly different company registration number format to that of companies registered in England and Wales. The company registration number shall start with SC followed by 6 digits numbers. SC is the abbreviation of Scotland. For instance, Scotland Company shall have company incorporation number read SC123456.

Lastly, limited company with registered office address in Belfast Northern Ireland shall have a company incorporation numbers starting with NI followed by 6 digits numbers. NI is the abbreviation of Northern Ireland. For instance, Northern Ireland Company shall have company incorporation number read NI123456.

Where to find your company registration number

Companies House website

You can search the Companies House register. Just type in your company name in the search box as indicated. Then click the Search button. Your company name and number and other details should display.

Company incorporation certificate

Your company registration numbers is also printed prominently on your certificate of incorporation.

Company change of name certificate

Similarly, If you have recently changed your company names, Companies House would have issued you with your company change of name certificate. You would find your company registration numbers are printed on the certificate. For one thing changing your company names would not affect your original company registration numbers.

All letters from Companies House

In addition, all Companies House letters sent to your company’s registered office address would have your company registration numbers printed on it. Ordinarily, it was used as their reference.

When you correspond with Companies House and HMRC, you must also use your company name and numbers as reference.

The incorporation emails

Usually, your company formation accountants would include your company registration numbers in the incorporation emails. Normally, the emails would include the Memorandum and Articles of Association and your certificate of incorporation. Also, your company authentication code.

When do you require your company registration numbers

Generally, you would require your company registration numbers in the following circumstances.

  • Opening a business bank account.
  • Submit the form 64-8 authorizing your accountants.
  • Submit your CT41G form disclosing your trading status with HMRC.
  • Register for value added tax (VAT) with HMRC.
  • Register for Pay As You Earn (PAYE) with HMRC when you start hiring staff or paying your director.
  • Submit your company confirmation statement with Companies House.
  • Prepare your company accounts. Otherwise, Companies House would reject your accounts if your company number is missing.
  • Complete your corporation tax return.
  • Notify Companies House of changes in your company details. For example, when you file the form AD01 to change your company registered office address you would require your company number.

Basically, any filing with Companies House you would require your company number. Whereas you would require your Unique Tax Reference (UTR) number in addition to your company name and number for filing with HMRC.

Besides, you must also display your company registration number on your business website, company letterhead and other official stationery.

Company director duties

Generally, company director is bound by the terms of the company’s charter set out in the Memorandum and Articles of Associations. In other words, your company director can exercise all the powers permitted by the memorandum and articles which are not reserved to be exercised by the shareholders in general meeting.

Director legal duties

In the event that your director is the majority shareholder and also the sole director, the rule may be despotic. However, your company director must act in accordance with the Companies Act and the general law. Your director’s duties include the following.

  1. A fiduciary duty to your company to act honestly and in good faith in the best interests of your company as a whole.
  2. A duty to exercise such a degree of skill and care in carrying out his duties as might reasonably be expected from someone of his ability and experience.
  3. A duty to fulfill your company’s statutory obligations imposed by the Companies Acts and other legislation at all times.

Director in a position of trust

Concurrently, your director has the duty to act honestly, in good faith and in the best interests of your company which imposes a trustee’s responsibility. This includes to take proper care of your company assets and to ensure payments are properly made and supported by adequate documentation.

In other words, your director must keep property accounting records. For instance, to have a system for cash management for staff and booking of all transactions in the company’s records.

Similarly, not to misappropriate company’s cash for personal use. For example, use your company to fund a luxury lifestyle. Or bought a car solely for personal use but put through the transaction in the company’s books.

Conflict of interests

On the other hand, your director must not make a personal profit at your company’s expense. He/she must disclose to the other directors at the board meetings any interests in your company transactions.

Furthermore, your director must disclose the transactions at the general meetings and include it in the minutes.

Another key point, your director must disclose the transactions in your company accounts. This type of transaction is classified as related party transaction.

Personal benefits

Furthermore, your director’s personal interests must not conflict with those of your company. For instance, they must not use your company assets for personal benefit. This includes knowledge acquired through the company.

Shareholder rights

Shareholder rights of a limited company registered in the United Kingdom is spelled out in the Companies Act 2006.

Minority shareholder rights

Generally, minority shareholders have no say in the management of your company and in the running of your business.

In other words, a minority shareholder cannot do anything if the management of your company is inefficient. It is only the majority shareholders who can take action.

Therefore, your directors must act in good faith and in the interests of your company as a whole at all times.

Majority shareholder

On the other hand, majority shareholders can do anything permitted by the Memorandum and Articles. They can ratify almost any transactions, even retrospectively, in general meeting.

For instance, a sole shareholder can sue your company in his own name to protect his individual rights. For example, to compel board to accept his vote at the general meetings.

As a matter of fact, if there is unfair prejudice, fraud or gross negligence, your shareholder has the rights to call in the Department of Trade and Industry to investigate your company. In some circumstances the court can take actions against your company. However, your shareholder wanting to take action must hold at least 10% of your company shares.

Consequently, your directors may then lose the protection of limited liability. Thus, the court may order directors to compensate your company or your shareholder for loss.

Board of directors

Usually, The board of directors control the management of a limited company as a whole and not individual director.

Commonly, formal meetings often dispensed with and the board of directors can delegate its powers to one or more board members and appoint a managing director.

Generally, they are different types of directors.

Part time directors

You may appoint a part time director, also known as non-executive director. Normally, non-executive director is with financial, legal or technical expertise that of huge contribution to the company growth.

Alternate directors

You may appoint an alternate director who speak and act on behalf of board of members in your temporary absence. However, you can only do this if you have an appropriate provision in the Articles.

Nominee directors

You may appoint Nominee directors to represent substantial shareholders. Your nominee directors must not act solely in their principal’s interests. But like any other director, in the interests of the company as a whole.

Shadow directors

Shadow directors are persons in accordance with instructions the directors are accustomed to act. Consequently, they have the same duties and obligations as any other directors.

Register of directors

As a rule, you must keep and maintain all your directors appointments in the Register of directors.

For a person director, you must keep the following information.

  1. Full name and any former name.
  2. A service address. For this purpose, this can either the company’s registered office address or the director’s home address.
  3. The usual country residence whether in the UK or any other state or country.
  4. Nationality.
  5. Occupation.
  6. Full date of birth.

Whereas for a corporate director, you must keep the following information.

  1. The corporate name or firm name.
  2. It’s principal registered office.
  3. In the case of an EEA company, where it is registered and its registration number. Otherwise, the legal form of the company or firm and the law by which it is governed. if applicable, where registered and its registration number.

On the other hand, you must also keep and maintain the register of directors’ usual residential addresses separately.

Besides, you must also fulfill the request to inspect your company registers. The law allows this.

Generally, all directors appointments and resignations must enter into your company registers. Subsequently, if there is any changes you must update the registers. At the same time you also must notify Companies House. You submit the relevant Companies House forms within 14 days.

Likewise, you must include your directors details in your confirmation statement. Typically, you are required to to confirm whether your directors details as at the your confirmation statement filing due date is still valid.

Register of directors

Companies House requires your limited company to keep and maintain a register of directors. Furthermore, you must make your register available for inspection at your company’s registered office.

If your register is not kept at your registered office then you must provide your Single Alternative Inspection Location (SAIL) address. In this case, you must submit the form AD02. Subsequently, if you change your SAIL address, you must notify Companies House using the form AD03. Thereafter, if you would like to move your register back to your registered office address, you may do so too. Accordingly, you complete the form AD04.

Generally, you must keep the information about each director include the following.

For person director

  • Full name including any former name, if any.
  • A service address.
  • Home address include the country of residence.
  • Nationality.
  • Business occupation.
  • Date of birth.

For corporate director

  • The company or the firm name.
  • Its registered office or principal office.
  • For EEA company, where it is registered and its registered number.
  • For others, the legal form of the company or firm and the law by which it is governed and if applicable, where it was registered and its registration number.

Besides, your company must also notify your director’s details with Companies House. Additionally, you must also notify Companies House if there is any changes. This includes new director appointment and resignation as well as change of personal details.

For example, if you would like to remove a director, you complete the Companies House form TM01. On the other hand, if you would like to appoint a new director, you submit the form AP01 to Companies House. On one hand, for update of your existing director’s details, you file the form CH01. All these forms can be downloaded from Companies House website for free.

On the other hand, you must also include the latest directors information in your company’s confirmation statement. Confirmation statement is a compulsory filing and failure to do so is a criminal offence.

For one thing, you may use the standard company registers to maintain your limited company register of directors records. The registers booklet is organized into sections and the booklet is printed in A4 size.

Failure to keep the register of directors

Accordingly, there are consequences for failing to keep and maintain your register of directors. The level of fines imposed on your company is dependent on which country your company was originally incorporated.

For company registered in England and Wales

Your company and all of your directors (this includes a shadow director) and company secretary is guilty of an offence under Section 162 of Companies Act 2006 is liable on summary conviction to a fine not exceeding level 5 on the standard scale. And, for continued contravention, a daily default fine not exceeding one tenth of the greater of £5000 or level 4 on the standard scale.

For company registered in Scotland and Northern Ireland

Your company and all of your directors (this includes a shadow director) and company secretary is guilty of an offence under Section 162 of Companies Act 2006 is liable on summary conviction to a fine not exceeding level 5 on the standard scale. And, for continued contravention, a daily default fine not exceeding one tenth of level 5 on the standard scale.

In the event that you refused inspection of your register. The court may issue an order to compel you to give immediate inspection of it.

Directors disqualification

As a rule, you cannot be a company director if you are already bankrupt or under a debt relief order. You have to wait till your disqualification ends. For this purpose, the provisions for directors disqualification is contained in the Company Directors Disqualification Act 1986.

First and foremost, the Company Directors Disqualification Act 1986 is introduced to stop incompetent or unscrupulous individuals from leading and managing companies for a period of time with the intention to abuse the law.

For this purpose, the Secretary of State maintains the Register of directors Disqualification Orders and it is open for public inspection.

Concurrently, you may also search Companies House database of disqualified directors. All you have to do is “search the register” by entering the company name, number or officer name. On the other hand, Companies House would automatically remove the director’s details from the database when his/her disqualification expired. Accordingly, the record is updated weekly.

Unfit conduct

Universally, you can be disqualified from being a company director if your conduct is deemed unift. For this purpose, unfit conduct include the following.

  • You allow your company to trade even when you know your company cannot pay it’s debts.
  • Intentionally not keeping proper accounting records.
  • Deliberately not deliver your company accounts and confirmation statement to Companies House.
  • Not paying your company taxes to HM Revenue and Customs.
  • Use your company’s money and assets for personal benefits.

Circumstances lead to director disqualification

Generally, you would be disqualified and banned from being a director if you are guilty and convicted of the offences.

  1. On conviction for an offence connected with promotion, formation, management or liquidation of the company.
  2. The company continued to trade with intent to defraud creditors (suppliers) even in the process of winding up.
  3. Guilty of a fraud in relation to the company.
  4. For non-compliance with the Companies Act with persistent default that is at least three offences within five years.

Length of disqualification

Generally, you can be disqualified up to 15 years. The court has the discretion whether or not to make the order. It must however, disqualify a director whose conduct in relation to the company, alone or together with his conduct as director of another company, make him in the court’s opinion, unfit to be concerned in the management of a company.

Company debts

In the event you are disqualified as a director, you are still jointly and severally liable for the debts of your company. Without reservation, the liability extends to anyone acting on your instructions.

Other restrictions

Furthermore, once you are disqualified from being a director, you would not be able to take on the following responsibilities.

  • Not allowed to sit on the board of a charity, school or police authority.
  • unfit to be a pension trustee.
  • Cannot be a registered social landlord.
  • Banned to sit on a health board or social care body.
  • If you are a solicitor, barrister or accountant, your professional bodies will remove you and you no longer able to continue your practice in your profession.

How director disqualification works

Commonly, you can be disqualified from being a director by the following bodies. Either of them can make an application to have you being disqualified.

  • The Insolvency Service
  • Companies House
  • The Competition and Market Authority (CMA)
  • The Courts
  • A company insolvency practitioner.

Director report

Director report is prepared and form part of your company accounts. You must present director’s report together with your company accounts to your shareholders. At the same time, submit a copy with Companies House. In addition, send another copy together with your corporation tax return to HM Revenue and Customs.

Additionally, you would need to include an Auditor report if your company is subject to an audit as required by law.

Generally, your company may file an abridged account or micro entity account with Companies House if your company meet the eligibility criteria either or both according to Companies Act. For this purpose, you do not require to include a director report with the abridged account and a micro company account and they put less information for the public.

Broadly, your director report would present the following.

Principal activity

First of all, you must specify your company’s principal activity including any significant changes during the accounting period. Your principal activity in your director report must closely match your SIC code in your confirmation statement.

Business review

Secondly, you are to include a true and fair review of your business performance during the year. Hence, provide description of its principal risks and uncertainties plus analysis of performance indicators. Where possible reference it to amounts included in the accounts.

Future developments

You must disclose information about your company future plus any events happened after the balance sheet date. This is to give a true and fair view of your business future affairs to the readers of the accounts.

Employee policy

Equally important, you must disclose a staff policy pertaining staff involvement in matters of concern to them. This includes employment of disabled employees.

Political and Charitable donations

Your company is to disclose donations made if any. You must provide the details of amounts and the name of each person or organization receiving such amounts. However, expenditure on charitable purposes outside UK may not be disclosed.

However, a wholly owned subsidiary company may choose not give this information. But the parent company must give any such donations made by the subsidiary company.

Dividends

Your company must include information about dividends proposed and paid during the accounting year.

Payments to suppliers (creditors)

You must disclose the following if your company is a public limited company. Or that your company have been classified as large private limited company that is a subsidiary of a public limited company.

  • A statement of policy on the payment to suppliers.
  • If your company subscribes to a code on payment practices, such as the CBI code. This must be stated, and it must also be stated how details of the code may be obtained.
  • A statement of the average number of days’ credit outstanding at the balance sheet date.

Directorships

On the other hand, you must disclose the names of all persons who were directors during the financial year. For this purpose, If a person was not a director for the whole of the year. Then, you must give the date of appointment and/or the date of resignation or removal.

Correspondingly, you must submit relevant Companies House forms for director appointment and termination with Companies House.

Land and Building

You must disclose any difference in market value of interests in land or buildings over book value at the balance sheet date. Especially if the difference between the cost of and market value for the land and building is considerable. Hence, the directors believe that the members should be aware of this fact.

Share Capital

You must present the changes in share capital during the accounting year. For this reason, you must disclose new shares issued and the acquisition of your company’s own shares, if any.

Accounting principles

You must disclose the accounting principles adopted in your accounts preparation.

Going concern

If applicable, directors should report:

  • Any material uncertainties, of which your directors are aware. For instance, in making their assessment of the going concern status. Your director has cast significant doubt on your company’s ability to continue as a going concern.
  • Disclose the fact where the foreseeable future considered by your directors in their assessment of the going concern status of your company. The period is less than one year from the date of approval of the financial statements.
  • Disclose the fact where the financial statements are not prepared on a going concern basis. Also, the basis on which you prepare the financial statements. For instance, you prepare your accounts on break up basis. Additionally, you include the reasons why you do not consider your company as a going concern.

Disclosure statement to auditors

Lastly, if your company is to produce an audited financial statements. Then, your director report must include a statement to the effect that. In the case of each of the persons who are directors at the time the report is approved.

For example, so far as the director is aware, there is no relevant audit information of which your company’s auditor is unaware.

In addition, the director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information. Concurrently, to establish that your company’s auditor is aware of that information.

Cash handling

Business to have a cash handling policy for efficient cash management and to prevent fraud.

It is good idea your business to draw up internal control procedures for your staff who handle your business cash and monies matters in your business premises.

Genrally, the cash handling procedures shall consider cover the following.

Bank Deposits

Firstly, when paying a cheque or cash into a bank account, a deposit or paying in slip must be completed. Deposits can be made in person, by mail, or at automated teller machine (ATM). Cash should not be made by mail.

Receipts From Customers

Secondly, you must update Cash book, individual customer’s ledgers and trade debtors control accounts to keep track of your customers’ outstanding balances.

At the same time, send reminders to follow up on outstanding sales invoices. Document the payment methods your customers used to settle their invoices. For example, cash or cheque or by bank transfer or combination of the three.

For high volume transactions business, it is advisable to maintain your accounting records using well known bookkeeping software like Clearbooks, Xero, Sage or Quickbooks. As this will cut down administrative burden and less errors.

Issue cheque

On the other hand, the cheque must be signed by authorized signatory only and approval must be obtained for payment.

Ideally, the person authorizing the invoice for payment should not be the same person signing the cheques.

There are computer software packages available that write cheques and reconcile a bank amount automatically. Using computer software is the quickest and accurate way of writing cheques. The computer prints the cheques and records the payments for accounting purposes.

Regularly, prepare bank reconciliations. The use of computer-prepared cheques simplified the bookkeeping process.

Paying Bills Electronically

Another way to pay Bills is by electronically as an alternative to writing cheques. This has become increasingly popular and convenient.

There are different types of electronics payments:

  • Paying Online,
  • BACS payment,
  • Electronic Fund Transfer,
  • Standing Order,
  • Direct Debits,
  • Bank transfers,
  • Telegraphic transfer

These facilities have made global trading possible.

For instance, you may pay your staff directly by deposit salary to their bank accounts. You may electronically send PAYE and NIC to the HMRC.

Besides, Handling cash electronically also enable monies available sooner between banks and there is less chance of fraud.

Security is extremely important when paying bills online. Passwords and identification numbers are a key to your company’s bank account. For this reason, they should never be left where unauthorized staff or the public can see them.

However, it is still a best practice to perform accuracy check by reviewing the payments made electronically on regular basis.

Bank Accounts Reconciliation

Doing bank reconciliation frequently is compulsory to ensure there are sufficient funds in your bank accounts to fund the payments made electronically. This includes direct debits, cheques issued, standing order and BACS payments.

Likewise, you must also update the suppliers’ accounts frequently to ensure no overdue payments. Keep an eye on any discounts offered by the suppliers for early payments. Because this provides further savings for your business if there is sufficient cash in the bank and payment can be made.

Petty Cash

Normally, petty cash is for paying small items, ad-hoc expenses, stationery, taxi fares, and for reimbursement of staff expenses.

You can usually set a maximum amount for withdrawals from the petty cash fund. For example, for expenses claimed up to £200 will be reimbursed from the petty cash.

Correspondingly, the person claiming petty cash must sign the petty cash voucher. Attached the expenses receipts to the petty cash voucher.

On the other hand, an effective cash handling procedure gives confidence to your Auditor that your accounting system is reliable and your company accounts give a true and fair view.

Replacement of domestic items relief

Replacement of Domestic Items relief is introduced in residential property business to replace the 10% wear and tear allowance. The wear and tear allowance has been abolished. And, the replacement of domestic items relief is available for the tax year from 6 April 2016 onward.

Domestic items

Generally, you may still claim the 10% wear and tear allowance, if you are calculating income tax liability for rental income falls in period up to 5 April 2016.

From 6 April 2016, you may start to claim the replacement of domestic items relief. In other words, you can claim the cost of replacing furniture and fittings, the domestic items for your buy to let properties. The relief covers the following domestic items.

  • Movable furniture for example beds, free-standing wardrobes.
  • Furnishings for example curtains, linens, carpets, floor coverings.
  • Household appliances for example televisions, fridges, freezers.
  • Kitchenware for example crockery, cutlery.

In short, the Replacement of Domestic Items relief is available and apply to unfurnished, part furnished or fully furnished residential property.

Replacing old furniture – beyond repair

You may claim the replacement of domestic items relief when you replace a piece of broken furniture that beyond repair in your buy to let property. The new furniture must be for your tenants’ enjoyment in that property.

To clarify, this relief only available for replacement of domestic items not the initial cost of getting the items for your property.

Upgrade of old furniture – modern furnishing

On one hand, if you are replacing your broken furniture in your buy to let, an upgrade version. For example, a sofa with a sofa bed, the allowable deduction is limited to the cost of purchasing an equivalent of the original item. So if a new sofa would have cost you £400 but a sofa bed cost you £550, you could only claim the £400 as a deduction. No relief is available for the £150 difference.

When considering if the new item is an improvement on the old asset, the test is whether the replacement item is or is not, the same or substantially the same as the old item.

Meanwhile, changing the functionally, say from a sofa to a sofa bed, means the replacement is not substantially the same as the old item.

For this purpose, changing the material or quality of the item also means the replacement is not substantially the same as the old item. For instance, you upgrade from synthetic fabric carpets to woolen carpets, the replacement is not substantially the same as the old item so there has been an improvement.

If the replacement item is a reasonable modern equivalent, say a fridge with improved energy efficient rating compared to the old fridge. Then, this is not considered to be an improvement. Thus, the full cost of the new item is eligible for relief.

In the example above, if you later purchase a replacement sofa bed for use in that buy to let property. Accordingly, you would be able to claim the full cost of this new sofa bed. As a rule, provided there was no improvement on the old sofa bed. And, the old sofa bed is beyond repair or no longer available for use in that property.

Calculate the replacement of domestic items relief

Universally, when calculate the relief, you must take into account if your old domestic item is sold or part exchanged for the new item. And also the incidental costs of disposing of the old item or acquiring the replacement item.

The formula to work out the relief for the new item is as follows:

  • The cost of the new replacement item, limited to the cost of an equivalent item if it represents an improvement on the old item (beyond the reasonable modern equivalent) plus
  • The incidental costs of disposing of the old item or acquiring the replacement less
  • Any amounts received on disposal of the old item

For example

Sheila has replaced a single, wooden framed bed in her rental property with a new double divan bed. The new double bed is an improvement on the old bed and Sheila paid £400 for it. Which is significantly more than the £150 it would have cost if she had replaced the old bed with a new equivalent wooden framed bed. Therefore Sheila cannot claim more than £150 of the purchase cost as a deduction. Sheila also paid an additional £20 to have the new bed delivered but managed to sell the old bed online for £30.

Sheila needs to work out how much he can claim as a deduction:

  • Cost of new replacement item limited to the cost of an equivalent new item £150
  • Add the delivery charges £20
  • Less proceed from selling the old bed £30
  • Amount deductible under Replacement of Domestic Items Relief is £140.

Furnished holiday Let

If you replace a domestic item in a property which qualifies as a Furnished Holiday Let. The Replacement of Domestic Items relief is not available. However, you will continue to claim capital allowances on these items.

Rent A room

If you use the Rent a Room Scheme, the Replacement of Domestic Items relief is also not available.

10% Wear and Tear allowance

You cannot claim the 10% Wear and Tear allowance while also utilizing the Replacement of Domestic Items relief.

Audit on company accounts

Audit on company accounts are compulsory for large and medium size company. However, small company and micro entity may claim audit exemption. In other words, small company and micro entity do not need to audit their accounts.

However, some companies even if they are small companies and micro entities are not allowed to claim audit exemption. They must deliver audited company accounts to Companies House.

These companies are:

  • A public limited company.
  • A company is parent or a subsidiary of a group and the group turnover exceeds the audit threshold.
  • An authorised insurance company or carrying out insurance market activity.
  • A company involved in banking or issuing e-money.
  • A Markets in Financial Instruments Directive (MiFID) investment firm or an Undertakings for Collective Investment in Transferable Securities (UCITS) management company.
  • A corporate body and its shares have been traded on a regulated market in a European state.

Compulsory Audit

Large companyMedium size company
Sales less than> £36 million£36 million
Balance Sheet total> £18 million£18 million
Average no. of staff less than> 250250

Large company must prepare and submit full audited accounts with Companies House.

Similarly, medium size company must have their accounts audited but may opt to prepare accounts giving less information for public record.

Audited accounts comes with an auditor report. Your auditor would express their opinions on your accounts whether it gives true and fair view. It is a good report if you get an unqualified audit report.

Voluntary audit

Micro entitySmall companyAudit exemption
Sales less than£632,000£10.2 million£10.2 million
Balance Sheet total£316,000£5.1 million£5.1 million
Average no. of staff less than105050

Small company and micro entity company may choose not to audit their company accounts by claiming audit exemption.

Accounting and auditing are two different assignments. To put it simply, accounting is assembling transactions into profit and loss account and balance sheet and other financial statements. Whereas auditing is checking the accounting is accurate. For this reason, you must hire a qualified auditor to do the work. The auditing fee is on top of your accounting fee.

However, they may opt for voluntary audit if an audit would benefit them. For example, a company preparing for admission into stock exchange require minimum of three years audited accounts with unqualified audit report prior to admissions.

Generally, an audit includes verifying information in your accounts on sample test basis and also your company documents such as the Confirmation Statement filed with Companies House if it is still valid. ‘in addition, the disclosure in the accounts are appropriate.

Where to send your company accounts

Where to send your signed company accounts is dependent on where your company’s registered office is situated. For instance, company with registered office in England and Wales may send their accounts to Companies House London office or Companies House Cardiff office.

As a matter of fact you may file your micro entity account using the webfiling service. In this instance, you would require your authentication code for this purpose. The authentication code is the electronic equivalent of your director’s signature. Therefore always Keep safe of your code.

In situation where you have misplaced your code, you can request it again from Companies House. It takes five working days to arrive at your registered office address. However, if your registered office is no longer valid, change it.

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