Business Finance

Business changes: What does HMRC need to know?

Businesses throughout the country make changes to the way in which they operate every single day, whether that’s by recruiting new members of staff or a more drastic alteration such as introducing a different name to operate under.

Are you aware that every little change made within your business needs to be reported to HM Revenue and Customs (HMRC)?

This might not be top of your priority list when trying to get to grips with a new way of doing things, training new staff, or informing clients of changes, but it is of utmost importance that HMRC is kept in the know throughout any periods of transition, regardless of how small they are.

If you’re not sure how to go about this, have a read through our guide to handling business adjustments to ensure any alterations go as smoothly as possible.

What could change?

Although your company might not be undergoing any major changes, it is important to bear in mind that there are a whole host of adjustments HMRC need to be made aware of for tax purposes.

A new name is obviously a drastic change that HMRC will have to be informed about, but something such as appointing a new director or altering your main mailing address and failing to tell the tax body could mean you are placed in an unintentionally illegal situation.

You’ll need to keep HMRC in the loop with regard to VAT and PAYE, as well as changes that could affect your Corporation Tax, which may require you to get in touch with several different departments at the tax organisation, either by post or online – whatever you find easiest.

Limited company changes

If you manage a limited company, you will need to tell Companies House about some adjustments that may occur as well. This can be done online if you find it easiest to and they will then be the party responsible for informing HMRC. Such a process is required by firms wishing to change their registered address.

However, if the alteration in circumstances relates to a Group Payment Arrangement, you will need to tell HMRC separately yourself too.

In addition, by using Corporation Tax Online, limited companies can update details relating to postal addresses – but not for the company’s primary registered office – as well as for phone numbers, email addresses and even fax numbers.

Corporation Tax Online is easy to use and provides you with an extremely secure platform on which to input your details. Updates should take place within just 48 hours, helping to make sure you remain operating within HMRC’s rules as soon as possible.

Tax-related changes

It’s obviously not just the little details about your limited company that need to be updated, but anything relating to the way in which your business pays tax too.

If there’s someone else dealing with taxes on your behalf, such as an advisory or accountancy firm, you’ll need to keep HMRC informed of this and any changes that may occur relating to this.

Additionally, your business can adjust its Corporation Tax accounting period using the online system, allowing you to change the date to suit your company’s needs.

Remember, if you’re not particularly tech-savvy, all this can be done by downloading forms and filling them out too, but updating business changes really is a reasonably straightforward process.

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