When you form a limited company you don’t need to notify HM Revenue and Customs (HMRC) of the company formation. Companies House will do this for you. However, there is something that you do need to let them know about. Let’s take a look.
Your first correspondence with HMRC
Approximately two weeks after your company’s formation, HMRC will mail a letter to your registered office. This letter will include the Unique Taxpayer Reference (UTR) and contact information for your Corporation Tax office.
Put the letter somewhere safe or make a note of the information. It’s important.
If you are going to trade with your limited company
You need to notify HMRC that you’re doing business no later than 3 months after you started trading. This is for Corporation Tax purposes.
To do this, you must create a Government Gateway account where, amongst other things, you will be asked the start date of your trading activity. HMRC will then send further information, including filing deadlines, to your registered office.
If you are not going to trade with your limited company
Not all businesses are ready to trade straight away. Some businesses will never trade. If you don’t intend to trade just yet (or not at all) you will need to notify HMRC. To do this, you must write a letter to your Corporation Tax office (found in your initial correspondence with HMRC) letting them know about your dormant status.
So, there you have it. You don’t need to notify HMRC of your company formation but you do need to let them know about your trading status. We hope you have found this post helpful. Please leave a comment or get in touch if you have any questions.