What accounting requirements must a limited company adhere to?


I would like to set up a limited company in Scotland, yet before I launch this project I would like to know what is going to be expected of me from an accounting point of view. I haven’t got an accountant, so I’m entrusting the world wide web. Could you please let me know what sort of accounting requirements a private limited by shares company needs to adhere to? Just so I’ve got an idea.



The accounting requirements you (or your chosen accountant) will have for your limited company are:

  • Keeping accurate accounting records of all money spent and received - this includes receipts, purchase orders, invoices, order forms, business bank account statements, financial statements, service contracts and payment schedules, credit agreements payroll records, cash books and dividend vouchers.
  • Completing annual accounts for Companies House.
  • Filing an annual return at Companies House.
  • Registering for Corporation Tax.
  • Completing a Company Tax Return and statutory annual accounts for HMRC.
  • Paying Corporation Tax once a year to HMRC.
  • Registering for VAT, if applicable - you may also find it beneficial to register voluntarily.
  • Filing VAT returns and paying VAT every 3 months.
  • Registering for PAYE and operating payroll.
  • Filing PAYE reports with HMRC.
  • Taking and keeping a record of annual stock takes and inventories.
  • Keeping a record of all non-stock company assets.

Some of these tasks may be particularly daunting and time-consuming if you don’t have any prior experience, so you may find it useful to appoint an accountant to take care of this side of things. An accountant is also more likely to be aware of different tax-efficient opportunities available to you, so he or she could save you a bit of cash, as well as stacks of time.

2 years ago

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