The limited company and tax

The limited company and tax, Dunhams Prepare for success
The limited company and tax, Prepare for success

When setting up a new business, you have to decide what format your business will take. If you decide to form your business as a limited company, there are some requirements you will need to follow to notify the right people (Companies House). We explain below why you need to notify Companies House and the tax implications for running your business as a limited company.

The limited company and tax

Companies House informs HMRC of a new company

If you are going to trade as a sole trader
or partnership you don’t have to register
with Companies House. However, if you
intend to form a limited company you
must register with Companies House. The
main offices are in Cardiff and London with
several regional centres across the UK.

Companies House informs HM Revenue
and Customs (HMRC) when any limited
company is formed and registered with
them. But if you use the Companies
House Web Incorporation Service and
your company is ‘active’ at the time you
incorporate it ie, it has started trading or
receiving income, you can choose to
supply the statutory information to HMRC
at the same time that your business
becomes active.

HMRC uses the information it receives from
Companies House to set up a computer
record for your company and allocates it
a reference number known as a Unique
Taxpayer Reference (UTR). They then send
form CT41G (Corporation Tax – Information
for New Companies) to your company’s
registered office. This form includes your
company’s UTR so you need it to keep
it safe as you will need it whenever you
contact HMRC. It also tells you what you
need to do once your company is active
and suggests other tax implications your
company may need to consider.

It’s important that you read form CT41G
carefully and promptly take any action
that’s needed.


Download the full document here


Prepare for business,
prepare for success.

ICAEW Business Advice Service

The ICAEW Business Advice Service (BAS) provides
professional advice for start-ups and owner-run businesses.
As well as practical help online in the form of white papers,
short PDFs and blog articles, we enable businesses to
receive an initial consultation at no charge from an ICAEW
Chartered Accountant.

ICAEW Chartered Accountants are the biggest source
of business advice, reaching over 1.5m businesses from
more than 20,000 offices across the UK.

If you need further help with VAT issues,
a free initial discussion with an ICAEW
Chartered Accountant is a good place to
start. Visit

This leaflet is part of a series.

To find out more see our resources page

Scroll to Top