IT Contractor Tax Limited Company Accounts Accounting

Free impartial start-up advice
From pcg.org.uk, the association
supporting freelance contractors

Companies Act changes for limited company contractors

Posted Sep 8, 2009

Limited company IT contractors should take note of the latest implementation of Companies Act changes, which come into force on 1st October 2009.

This is the main implementation of the Companies Act 2006, following a series of smaller implementations over the past couple of years. An example of a previous change in 2008 is making the company secretarial role an optional appointment.

Although most limited company contractors won't be affected by the majority of the latest changes, here are some of the more relevant ones:

Companies Act changes - 1st October 2009

1. The Registrar of Companies will gain more powers.

2. Some of the Companies House forms currently familiar to limited company contractors may change, or be replaced.

3. Replacing the current procedures, Form IN01 will now be used to form a company, together with Memorandum and Articles of Association, and the submission fee.

4. Authorised / nominal share capital will be discontinued on incorporation.

5. There will no longer be a limit set out in the Memorandum of Association on the number of shares that directors can issue.

6. Company naming rules are set to become stricter, particularly "same as" type names.

7. Company directors must now provide a "service address", alongside their residential address (although these may both be the same). Therefore, a director's address will no longer appear on any public register if they have a different "service address" (e.g. your accountant or a virtual office provider).

8. Companies incorporating as limited by shares (whether private or public) on or after 1st October 2009 must complete a statement of capital and initial shareholdings as part of the application to incorporate.

9. There are new rules overseeing limited company constitutional documents (including the Memorandum and Articles of Association) - see this dedicated article on Bytestart.

You can find out more about these and the other 1st October 2009 changes at Companies House.

Please scroll down for related articles

Contractor Services


Related Articles

Contractor limited company naming tips
If you have decided to contract via your own limited company, one of the first tasks you need to do is choose a suitable name for your new enterprise.

Limited company contractors - what are dividends?
A guide to dividends for contractors and small businesses. How to calculate them, when to distribute them and what paperwork you need to complete.

Contracting via a limited company - advantages and disadvantages
We look at the advantages and disadvantages to contracting via a limited company, the most tax efficient way to contract.

As a company director, can I keep my home address private?
As part of the final implementation of the Companies Act 2006, limited company directors can now provide a 'service address' to appear on the public record, and keep their residential address private.

How to change the name of your limited company
At some stage during your contracting career, you may decide that you would like to change the name of your limited company.

How to incorporate a limited company
If you are thinking of contracting via your own limited company, there are typically three ways of incorporating your new company.

Companies House and limited company contractors
Limited company contractors will communicate with Companies House in a number of ways each year, from submitting their annual returns, to providing company information updates.

Steps to becoming a limited company contractor
If you have decided to set up as a limited company contractor, there are a number of steps you will need to take before you're ready to start in business.

Can anyone become a limited company director?
Are there any restrictions on who can become a limited company director, and do you need any qualifications?

Limited company dividend vouchers and board meeting minutes
A limited company must record its intention to issue dividend payments via board meeting minutes, and issue each shareholder with a dividend voucher. A simple guide to getting the paperwork right.

New Companies House forms for limited company contractors
Limited company contractors will need to get used to a new set of forms when they inform Companies House of any changes to their circumstances.

Limited company contractors - Companies House form changes from 1st October 2009
Many of the forms limited company contractors have previously used to interact with Companies House will change format on 1st October 2009 following the final implementation of the Companies Act 2006.

How do I switch from an umbrella company to a limited company?
Moving from an umbrella to limited company structure should be a hassle free process - here are some things to bear in mind before making the move.

Companies Act changes for limited company contractors
Limited company IT contractors should take note of the latest implementation of Companies Act changes, which come into force on 1st October 2009.

How to set up a limited company
How to set up a limited company - what the legal requirements are, and your responsibilities as company director.

Qdosconsulting

Accountants

Umbrella Companies

Contractor Services

Contractor Financials

CONTRACTOR GUIDES