Q: I have set up a company, when should I notify HMRC?
A: Companies must notify HMRC within three months of becoming active, which means, carrying on any business activity, trading or receiving income. This includes, buying, selling, advertising, renting a property and employing someone. You can check the guidance Corporation Tax: trading and non-trading to clarify what counts as business activity and starting to do business.
HMRC will need the date your company became active and the date to which the annual accounts will be made up to, and they will use this information to update your records. This will ensure the correct notice to file is issued and minimises delays when returns are received. It will also prevent incorrect late filing penalties being issued.
If you require any help and advice setting up a company, please give us a call on 01908 227055