STATUTORY COMPLIANCE MATTERS
JPC FINANCIAL LIMITED
FINANCIAL LIMITED
THE COMPLETE BUSINESS MANAGEMENT SERVICE
CONTENTS
After the completion of all company formation requirements, the company is officially owned by the contractor. Thereafter, several other steps require to be taken:-
INLAND REVENUE REGISTRATIONS
  1. The company must be registered as a taxpayer for the purposes of Corporation Tax. The company will be issued with its own tax reference number. After a few weeks a Form CT41G will be issued to the company, which is a full questionnaire on the company’s proposed activities and its ownership etc.
  2. PAYE: The company must be registered as an employer. A separate reference number and an employer’s pack will be issued from the Employer’s Unit. If you have chosen an accountant to operate your PAYE scheme then this can normally be dealt with directly by them over the telephone.
  3. The contractor must be registered as an employee of the company. This is done in the normal fashion, by submission of a copy of gross income and tax deducted to date (if applicable) in the appropriate financial year (P45 from previous employer). In the absence of a P45, an individual can be registered after the submission of a P15 coding claim form or a P46 statement form.
VAT REGISTRATION
The majority of contractors are required to register for VAT as their turnover (annual estimated income to the company) is expected to exceed the minimum level set for compulsory registration (£52,000). Even where the minimum is not likely to be achieved, voluntary registration can often be advantageous. The pros and cons of VAT registration, and procedures, will be discussed fully at an initial meeting or at the formation stage. As a rule of thumb, it will generally be advantageous for a contractor to voluntarily register once he achieves £1100 per week income.
BANK ACCOUNTS
It is recommended that the contractor should open two bank accounts in the name of the company:-

  1. A current or cheque book account for the day to day transactions of the company.
  2. A deposit or savings account which will be used to save funds for payment of VAT and tax bills. It is more advantageous to open the deposit account in the company’s name, because interest earned on deposit accounts is credited gross of tax for corporate clients. Furthermore, transfers to private accounts may be deemed to be drawings from the business which would lead to immediate tax  implications for the individual concerned.

To open the bank accounts the bank manager will require to be shown the Certificate of Incorporation of the company (the original, a photocopy is not sufficient) and a copy of the Memorandum and Articles of Association of the company (which he will keep). Always ensure that the bank manager does not keep the Certificate of Incorporation of the company, as this must be returned to and kept at the registered office of the company.

N.B. JPC Financial Limited have contacts with two bankers whose accounts suit the contracting scenario very well. Bank account numbers can be acquired "over the phone" and you never have to meet a bank manager. Telephone and PC banking are also available.