Blog

There is no right or wrong answer about the number of shares you should issue when forming your company, however your answer will depend on your situation and how your company is going to be run.Updated July 2016.All registered companies are run by its board of directors and the shareholders, shareholders are also the legal owners. A shareholder can also be a director.

What are shares used for?

When a private Limited Company starts trading, normally a company will have assets and cash placed into it by the owners - who are the shareholders - to help get the business started and running properly. For example, a new company requires £5,000 to get started. This money may be used to pay for branding, advertising, website design and purchasing of stock. The £5,000 capital would have been placed into the company by the shareholders in exchange for shares in the company.

How many shares should I create?

If there is more than one shareholder in the company, their shares would represent the amount of capital they invested, so if 'Joe Bloggs' the first shareholder invested 70% of the capital he will then require 70% of the shares as equal representation. The simplest way of raising the £5,000 capital needed would be to create 5,000 shares, as this would equated to each share value being £1.00. Of course this is a very simplistic approach but does make it very transparent and equal.An alternative approach, if there is more than one shareholder, would be to issue one share each. Any capital placed into the business would be classified as a loan by the shareholder and would be required to be paid back.Both examples mentioned above are very simplistic methods of distributing equal shareholding when capital is placed into a company. In both cases the shareholders are equal owners of the business, which means they will receive equal dividends, equal assets and equal voting rights.

What about tax?

While both of the above methods are similar in terms of ownership and rights, both methods are very different in terms of taxation. Please contact us today so we can talk you through how best to optimise your tax outlay. We have a vast knowledge of accounting and tax advice that we have gained over our years of service in the industry, so we can advise you of your best course of action.

What if I don't want other shareholders?

If you are thinking about going it alone and forming a private limited company on your own with no other business partners involved, we would recommend issuing 1 share to start. This means you are the main and sole shareholder of your company. If more shares are needed further down the line, for example if you take on a partner or want to expand your company, these can be issued at a later date.If you are looking to form a Limited Company, or you are interested in creating the right first impression by using our mail forwarding address services, please do contact us today.

The location of your office and your business reputation are very intertwined. A prestigious address on your company letterhead can foster a positive first impression of your business even before the client has even met you. Those first communications with your new client will start off on the right note with a positive air and a willingness to do business with a company with some gravitas to their name.However, if you have a business address based in a run down area, a potential client's first impressions of that address can lead to a very negative outlook for you and your company. Can you really risk putting off prospective new clients even before you have spoken to them?A business operating in a well known area, such as our Virtual Office in London, can give your clients a positive first impression. Everyone understand first impressions are important, and we can help you achieve this. After all, where better to have your company address than in the beating heart of the country with a well-established reputation as a world-wide business hub.Our virtual office package provides you with a cost effect solution to establishing your good business name and reducing the risk of lost revenue through poor first impressions. Our cost-effective virtual office services offer a customisable range of management services that can help you see a great return on your investment.For example, you can obtain a prestigious London address for your company for less than £100 and this can be used as your main address, or in addition to your regular business address helping your clients think that you may have several offices located around the UK. Mail Forwarding is included, so this means you can use the address on your company stationary, websites, and other material and have your clients send their mail to you at your London address. Once we receive your mail, we can then forward your mail to your chosen location. This can be your main office address where you run your company from, or to your home address - wherever you prefer. We will not disclose your forwarding address to anyone.Don't worry if your business premises lacks suitable meeting space. Our virtual office address can also give you access to modern, unbranded business meeting rooms, creating a professional atmosphere for your business meetings. Using our state of the art meeting rooms can help your to maximise your business activities to achieved the best possible results for a very small outlay.Our virtual office and meeting rooms are a perfect fit for small companies or larger organisations that may not want or need to pay rent on larger business premises all year round when then are not needed at all times. We also find many homeworkers benefit from our virtual address service as it enables them to appear larger than they actually are, and helps to keep their personal residential address off public records.

How does it compare to a real office address?

Our virtual office service provides all the advantages of a real bricks and mortar office but without requiring the large overheads and expenses needed for rent, rates, insurance and employee wages. Our virtual office address allows you to have all of your business post sent to us in London, we then forward all of your mail to your chosen address.Virtual Offices are certainly a smart and efficient way of helping to improve businesses productivity. It enables your business to develop excellent relationships through good impressions and positive reputation building. A virtual address offers all the benefits of a real office address without the associated overheads. This is a fantastic cost-effective method of improving your bottom line and cutting out a lot of expensive and unnecessary business outlay.Find out more about our virtual office services here.

Shares ultimately tell you who own the company. Directors are in charge of the company but they may not actually own the company but they could have shares in it. The shareholders are the legal owners of a UK Limited Company.A private Limited company may have many different shareholders or just a small handful, how much of the company they own can be reflected in the percentage of shares they own in the company. So for example if 100 shares in a company are issued, and Joe Bloggs owns 80 shares, then Joe Bloggs will be the majority shareholder and will owns 80 percent of the company.

Dividend payments

Shareholders are paid via a Dividend. Any profit the company makes can be issued to the shareholder in the form of a dividend. So the more shares you own in the company the larger the dividend (or payment) you will receive. If you are an 80 percent shareholder for example, then you will be entitled to 80 percent of the issued dividend.Having shares in a company can also give you powers to help shape the business and the way it is run. The shareholders are given voting rights at general company meetings. The more shares you own - the larger the say you have in the running of the business.

How many shares should you create when forming a company?

This is entirely down to you, however we recommend creating a small amount of shares to begin with, so they can be easily divided. If you are going into a partnership, we would recommend 2 or 10, as these can equally shared. We also recommend setting the value of the share are £1 as this equates to the amount you would loose if the company was to go in to administration. Extra shares can be created if needed at a later date, for example if you were to bring in a new director they may want a share as an incentive.

Do I need to inform Companies House of the shareholders?

The short answer is yes. Companies house requires you to maintain the register of all shareholders and shareholdings. When you file your annual return to Companies House, the previous years activities including your list of shareholders and holdings will be publicly available.

What other types of shares are available?

The share most shareholders issue upon company formation is called an ordinary share, and this gives the shareholder equal voting and dividend rights.There are other types of shares, such as preference, non-voting, B Shares, and may have different options such as no dividend or voting rights, or a smaller or limited dividend percentage. Some well-known companies provide shares to their staff, such as Waitrose, they feel this gives them an incentive. This is where a special type of share can be useful. The type of share you have issued and the function it has will have to be in the Companies Article of Association.

What is the difference between a shareholder and a stakeholder?

A shareholder will own part of your company through stock ownership, but a stakeholder is more concerned with your company performance rather than stock appreciation.Stakeholders are looking for other guarantees, so for example your company employees may be stakeholders who want to see the company do well so they can keep their jobs. They could be your customers who absolutely rely on you to provide them with the goods or services they need, for example community farm customers who rely on their weekly organic vegetable boxes for food. They may have invested money into the farm to help set it up but wouldn't expect to get a dividend paid to them.Shareholders still make up the largest percentage of most registered companies, but they are still affected directly by a companies performance just like a stakeholder would be.

File a second filing of a document previously delivered (RP04).This form should be used to notify Companies House of a second filing of a previously properly delivered document that contains inaccuracies showing on the register. There is also a guide to filling in your form on the link above.This form only applies to the following documents:AP01 Appointment of directorAP02 Appointmentof corporate directorAP03 Appointment of secretaryAP04 Appointment of corporate secretaryCH01 Change of director’s detailsCH02 Change of corporate director’s detailsCH03 Change of secretary’s detailsCH04 Change of corporate secretary’s detailsTM01 Termination of appointment of directorTM02 Termination of appointment of secretarySH01 Return of allotment of sharesAR01 Annual ReturnForms need to be printed at full size on white A4 sized paper.This is a relatively new feature introduced by Companies House that allows Limited Companies and Limited Liability Partnerships (LLP`s) to re submit information that may have been incorrect at the time of filing (usually due to the company formation agent incorrectly inputting information).

I need to re submit a second filing how do I do this?

You will need to re submit to companies house a new form which is basically a correct version of the form which your agent may have asked you to fill in. You will also need to fill in the following forms:FORM RP04 This is for Limited CompaniesFORM RR04 This is for limited liability partnershipsPlease note you need to attach the above forms to each corrected form that is being second filed.

Once the information is corrected, is the original removed?

The short answer is no, any information provided to Companies House is there permanently on record and will remain on the register indefinitely. For more information on how long records last see our blog post on company information records. Your new information will be updated and displayed correctly on the Companies House records.

What forms can be Second Filed?

For companies:

• AP01, AP02, AP03, AP04 Appointment of director, corporate director, secretary or corporate secretary
• CH01, CH02 ,CH03, CH04 Change of director`s, corporate director`s, secretary`s or corporate secretary`s details
• TM01, TM02 Termination of appointment of director or secretary
• SH01 Return of allotment of shares
• AR01 Annual Return

For LLPs:

• LL AP01, LL AP02 Appointment of member, Appointment of corporate member
• LL CH01, LL CH02 Change of member`s details, Change of corporate member`s details
• LL TM01 Termination of appointment of member
• LL AR01 Annual Return

Can I resubmit my second filing online?

No this service is not available online. You will need to fill in the above forms and return them by post. The second filing must be submitted on paper.

Do I have to pay for a second filing?

Companies House does not charge for a second filing as of June 23rd 2014.If you would like help advice on forming a new Ltd Company please do not hesitate to contact us, we are always happy to provide free expert advice. We have a vast amount of experience and have been forming companies since 1971.

Sometimes it can be confusing to know whether or not you need to submit a self assessment tax return to HMRC at all. The best advice for those who have been sent a notice to file a tax return is that they should do so, even if you think you do not have any tax to pay this year.There is a risk that by ignoring the request to file a return you will land yourself with a fine for not completing it regardless of having to pay tax or not. The penalty currently stands at £100 for not filing a return.You may have had a change of circumstances that has led you to think you don't need to file a return. If this is the case then you should contact HMRC to tell them the reason why you think this is not needed, but you must do this before the deadline date of 31st January to avoid any penalties.

Who should always file a self-assessment tax return?

There will be people that need to submit their assessment every year. These will be people that are self-employed, partners who run a business together, sole traders, and those people who may work as an employee in a job but also have a self-employed business on the side.Working a regular job and being self-employed at the same time is on the rise with many people choosing to work full-time or part-time for an employer and then work part-time on their own business. Even having a hobby that pays you something can be classed as a small business.All self-employed people and sole traders need to be aware of when you should send your Self Assessment tax return to HMRC. This is important as you do not want to receive a penalty fee for non submission or even late submission. If you are unsure or need some advice, do not hesitate to contact us! We can provide you with expert tax advice for your business and help keep you on track to avoid unnecessary fines.If you do need to send HMRC a tax return, you will be reminded by post in April or May. The letter will contain information about when you need to send the tax return back. If you are unsure if you should return a tax return you can check online at the HMRC website.Again, if you think you no longer need to fill in a return, you will need to inform HMRC as soon as possible. Even if you are no longer self employed you will still get a fine for late filing. You can contact HMRC direct through their website.

The deadlines for sending your HMRC tax return

The deadline is 31st October for your paper tax return

The official date for sending your paper tax return is midnight 31 October. On rare occasions it may be later if HMRC sends you a letter informing you to complete a tax return, the deadline will then be confirmed in the letter to you.

The deadline is 1st January for online tax returns

The official date for completing your online tax return is midnight 31st January. Again the same rule applies, if you receive a letter to complete a tax return later than 31 October the deadline will be on this letter and will be different to the normal tax return deadline.

Penalty payment

You will be liable to pay a penalty if you miss the deadline for submitting your return or you are late paying your bill.Currently HMRC issue a penalty of £100 if your tax return is up to 3 months late, but you will have to pay even more if it’s later that this, or if you fail to pay your tax bill on time.You are allowed to appeal against a penalty if you have a reasonable excuse or reason for not being able to submit on time. This could be due to an accident or serious illness for example.If you are at all concerned about getting your self-assessment submitted to HMRC, speak to us today. We provide leading virtual office, company formation and business taxation advice. We are always happy to help and are experts in our field with many years of experience in the business world under our belts.

When you form a new Limited company you will receive a letter from HMRC, this will contain a Form CT41G Corporation Tax information for new companies. This should be received within several days by post at your registered office address; once the company has been registered with Companies House. On the odd occasion you don't receive the form, you will need to inform HMRC within three months from the date your company has started trading (is active). You can do this via HMRCs online service, or simply contact our accountant and we can help you achieve this.HMRC will consider your company to be ‘active’ for Corporation Tax purposes when you are actually trading. For example, while carrying out your business activities, trading and receiving income.Dormant companies: HMRC would not consider your company active for Corporation Tax if your company is ‘dormant’. So for example, if you have set up your company but you are not yet active or not trading and bringing in any income, then you wouldn't be liable to pay Corporation Tax.

Corporation Tax is paid before the company tax return is filed.

Corporation tax is due before the deadline of filing your company tax return. The deadline for your payment will depend on your taxable profits. This is very different from Self-Assessment and VAT as the date of filing returns for Self-Assessment and VAT are usually the same. A lot of business owners can find this confusing so if you are unsure please do make sure you consult with us today, where we can talk through your tax dates. You can contact us here for some advice.

Corporation Tax Dates & Deadlines

The deadline for paying corporation tax is referred to the normal due date. The deadlines will vary dependent on factors such as the profit your company makes, so one company may have a completely different due date to another. HMRC expects all owed tax payments to be submitted electronically. More information about this can be found out on the HMRC website.

Dates for companies with £1.5 million or less taxable profits:

If your company has a profit of £1.5 million per year or less, the Corporation tax is normally nine months and one day after the end of your Corporation Tax accounting period.

Date for companies with more than £1.5 million taxable profits:

If your company has a larger profit over the £1.5 million mark, you will be expected to pay your Corporation tax in installments. More information about paying on installments can be found here.

I am unable to pay Corporation tax on time what can I do?

If you are unable to pay your Corporation tax on time, HMRC will charge you interest on what is owed to them. You may also be fined for not paying enough on your installments or you go out of your way to stall or fail to pay your regular installments.Any penalty charges will be applied once you have submitted your Company Tax Return and HMRC have had time to determine your case. Find out more information about penalty charges here.

What is the deadline for filing my Company Tax Return?

This is referred to as the statutory filing date. You are expected to file the companies Tax Return with 12 months of the end of the company's tax accounting period. If you file the accounts late HMRC will charge your company an automatic penalty.The rules and regulations around tax can be a little overwhelming. If you are struggling to work out what you should be paying and when, then do not hesitate to contact us for some guidance.

If your business turns over more than £83,000 (correct as of 1 April 2016) then it is compulsory that you register your business for VAT and this means you will need to charge VAT on your sales.If you fully expect your turnover to rise above this limit before the end of the year, or it has already done so, then you should register for VAT anyway.The VAT registration threshold changes annually so if you are not currently registered and you think you may achieve a turnover similar to the threshold it is worth ensuring that you know the limit for the current year.Registration can depend on your past turnover and projected turnover. You will have to register if your turnover in the past 12 months has gone beyond the set threshold, you will also need to register for VAT if you expect your business to exceed the limit in the next 30 days. Some businesses can grow rapidly in a very short time, so it is important to keep an eye on your figures to make sure you are not in breach of tax laws. No one wants to be fined for falling foul of VAT laws!You can find out more about registering for VAT by contacting us, we can help get your registration setup. The official page on the HMRC website can also help provide useful information on when you should register for VAT. If you want to find out how to register for VAT you can also visit the HMRC website or feel free to contact us. A lot of new business owners can become a little overwhelmed with the laws and regulations that surround VAT and how to register for it. We are here to help - feel free to contact us for some assistance and support.If you run a business that turns over less than the VAT threshold you can choose whether to register for VAT or not. This is caller voluntary registration, where a business chooses to charge VAT on its products. This can be beneficial for companies purchasing stock and then claiming back Value Added Tax. You can also read more on voluntary registration on the HMRC website.

Should I Register For VAT?

This is a question that is asked a lot by small business owners when they see their turnover rise. Although your turnover may not be close to the VAT threshold, it may be of some benefit for you to take voluntary registration for your company. It is worth registering if it makes sense for your business and your plans for future growth.If you are running a company that buys items from another VAT registered business, then they have to charge you VAT by law. However, you can claim this back!Here is a simple example of how this works and how you can be better off by being VAT registered: Lets say that in a 3 month trading period you have collected £1,000 in VAT from your customers. You will then pay this £1,000 worth of collected VAT to HMRC. It is almost like you are acting as an unpaid tax collector!However, during that same 3 month period you also purchased stock or services from a supplier and they charged you £200 + VAT (Total: £240). The amount you now have to pay to HMRC is the VAT you’ve collected from your customers (£1,000) minus the VAT you’ve paid out to your supplier (£40). So you will be handing over £960 in VAT charges to HMRC (£1,000 minus £40).You don't have to be good at maths to work out that you will be £40 better off at the end of this 3 month period than you would have been if you weren’t VAT registered.

Over the threshold but its a once off?

If your business has exceeded the VAT limit but this was due to a sales that was unexpected, a business can ask to be exempted from VAT registration. HMRC would require your business turnover to be under the de-registration threshold which is currently £81,000. (Correct as of 1st April 2016).

Why not speak to an accountant?

Tax can be a complete minefield for those who are unfamiliar with it, its one thing to run a business but to keep on top of a business and juggle the accounts is quite another. Some businesses are more time intensive than others, we always recommend having a chat with a qualified accountant. Why not give us a call? You can contact us here. We can talk through any questions you may have giving your peace of mind at the very least.

Lot of businesses in the UK use Mail Forwarding services - probably far more than you think! This is a service that allows you to hire an address and have all your business related post forwarded to that mailing address. Capital Offices mail forwarding service is much like a mail box or a PO box; in that you can use the City Road EC1 Central London address provided by Capital Office as your own, but our exclusive and prestigious London address will look far more professional on your business paperwork than a common PO box address.Many business people choose to have a mail forwarding address as this provides many benefits when compared to using your own residential address as your main business correspondence address. One such benefit is that the mail forwarding address is a prestigious London business address, and your clients would be given the impression that your actual business is based there. Clients will not know it is a mail forwarding or mail box service as their is no indication of this on the address you use.Our prestigious London address can be used on your own correspondence such as business cards, letter heads as well as on your website. Having a mail forwarding address instantly gives your business an established presence. First impressions are important and a mail forwarding service can help you achieve your important goals of building trust and credibility in your business.Another benefit is that of greater personal security. Your mail forwarding service from Capital Office will be completely confidential. This means that your details are private and will not be given out to anybody inquiring about your mail forwarding address. This is good for stopping unwanted callers turning up at your home at all hours of the day and wasting your precious time.Once your mail is received at your mail forwarding address, you can have it sent out to any location in the world that you choose. Most of our clients prefer to have the mail sent in batches - this can help reduce postage costs by sending the mail in one bundle as opposed to individually as each letter comes in. However you can choose how you want to have your post sent, each client will have their own individual requirements, so we are pleased to offer a flexible postage plan to suit your special needs.If you have any queries about our mail forwarding service, feel free to contact us so we can answer your questions and help to tailor a service that will be a perfect fit for your business needs.

Never miss another call with Your Virtual Office London call answering services. If you run a home office in London or anywhere else in the country, the chances are you will not be at your desk 24/7 all year-round. Have you ever missed a call from an important client that you really wanted to talk to? This can not only be frustrating, it can damage your reputation as a legitimate business. How much do you think missed calls have cost you in profits so far this year? Experts predict that thousands of pounds are potentially lost through missed calls that could have secured deals, finalised prices or delivered you some sales. People these days want immediate attention, and immediate results. If you are not available to answer their call, chances are they will go elsewhere to do business. Can you afford not to have a professional call service attached to your company?With a professional telephone answering service, you will never again miss your important calls. You will receive your very own dedicated London number that you can give out to your customers and clients with the confidence that it will always be answered. Your new London based number can be displayed on your company website, business cards, letterhead, etc. When clients and potential customers call your exclusive number, they will be greeted with a friendly and professional voice at the other end, answering in your company name and using your chosen greeting.For a low fee, you can have your very own bespoke telephone answering service which will handle all of your customer`s inquiries and questions with great clarity and professionalism. You will be notified by email and SMS when you have received a call, so you can call them back at a convenient time to address their concerns or questions. If you would prefer to have your calls directed to you while the client is on the phone, that is an option you can take as well. This way your customer can get their issue addressed immediately, and having a professional receptionist or assistant to answer your calls will give your caller the impression that your company is much larger than it actually is. This will build your reputation as a company that not only cares about their customers, but is also a credible and trustworthy company to do business with.You can set the exact times and hours that you want your answering service to take your business calls. Whether you want the service just for the evening hours, or you would prefer an all day service, there is a package available that will fit your needs perfectly. Setting up an account with us is fast and simple, and you can be up and running in mere minutes. Many answering services will charge you a set up fee, so you can save even more money by booking your call answering service through us.A telephone answering service can also be a great asset if you are planning on going on holiday, or you are going to be away for a few days on a business trip. Your service will answer all of your calls and forward your messages to you right away. If you would rather have the messages directed elsewhere, such as to your business partner for example, we can do that for you as well. It takes no time at all to set up your call service, and you can have great peace of mind any time you need to be out of town.Having a professional answering service can be worth it's weight in gold, and will make your life so much easier. You can rest assured your calls will be taken while you give yourself a chance to finish important business meetings without interruption or be able to concentrate on other important aspects of your business while all your calls are being taken good care of.

A virtual office acts as an actual fully-functioning, physical bricks-and-mortar office, but is actually off-site to your business.Virtual Offices are known for helping business owners to reduce their costs and overheads while continuing to present a professional business image. Those entrepreneurs and small business owners who have home-based businesses running from a home-office are often perfect candidates to make use of these services as they can get their virtual offices to handle certain aspects of the business for them.The virtual office is actually a real live office with a real address often referred to as a mail forwarding service and can come with a business telephone number which is answered by trained staff on your behalf. The primary functions of such offices are for live communication, telephone answering, meeting rooms, message taking and forwarding by virtual assistants.

Who is taking advantage of virtual offices?

An increasing number of small and medium size businesses are picking up on the idea of using virtual office providers to manage certain aspects of their business. Virtual Offices have become very popular for administrative and communication needs. If you have been considering using a virtual office, it is important to learn more about it and how using one can be of benefit to you. Below is a brief and helpful guide that offers relevant information on Capital Offices' Virtual Office service in London.

How a Virtual Office in London can benefit your business

Virtual offices offer various services to clients and are more cost-effective compared to actual on-site offices. Below are some of the many benefits of a virtual office that you will take great advantage of as soon as you start your own.First Impressions: Making a first and lasting impression on a prospective client is important for many businesses. By having a virtual office, you will have a professional address of a well-known and prestigious building. The address becomes your business address and it makes a big impression on clients. Having a virtual office of your own based in the heart of London can give your business the 'wow-factor', and help impress your existing clients as well as encourage new clients to sign up with you.Privacy and Security: Those who run home-based businesses do not want to give out their own private home address to just anyone! Who really wants to be inundated with mail shots or have cold-callers turn up on your doorstep at all times of the day or night? By having a virtual office, you will have a professional address at a different location away from your home that you can comfortably give out to business clients and prospective contacts at network meetings. Your privacy and safety will remain secure as a result.Cut-back On Costs: One of the biggest benefits of having a virtual office in London is that it allows business owners to cut back on the traditional costs and overheads associated with renting business premises. You do not have to spend money on renting or leasing a space all year round to have a professional office. Some people may just be testing the waters for a specific business idea they have had and are not ready to spend money on permanent office space or take out a mortgage on a building. You will also save money on petrol costs because you will not have to commute to your offices every day. You can continue to work out of your home office with the safe knowledge that everything is being handled professionally for you.Telephone Answering, Voicemail and Mailing Address: A lot of small and medium business owners do not have the time to answer every call, especially if they are away from their phone in a meeting, out on the road driving, or busy with some other task that needs all of their attention. Your day to day communications and other administrative responsibilities will be handled more easily and much more smoothly by using a virtual office.An added benefit of using a virtual office is that you will not have to worry about training up any customer service representatives to handle your calls, and there will be no language barriers or missed calls. Your calls will be transferred to you at any number you specify, or a message can be taken and then sent to you so you can deal with it at your convenience. You will also have voicemail capabilities and a professional mailing address to make sure absolutely nothing is missed or forgotten.Work from Anywhere: Your actual office is wherever you are. You have the freedom to work wherever you choose - from the comfort of your own home, at the airport, or a cafe! You can keep a virtual office and use it to run and manage your administrative needs.Whether you are a home-based entrepreneur, an accountant, therapist, company formation agent, or real estate agent in London, you will benefit from working with virtual office London in the long run. You will no longer have to worry about long-term commitments and expensive overheads. Instead you can simply focus on running your business every day.Get in contact with Capital Office to see how our Virtual Office Service can really be of benefit to your business.