You want to start a business..you may decide to set up as a limited company for tax reasons or because it makes you look more professional when dealing with clients and customers…but do you know what your responsibilities are when you become a director?
Legally, a director of a company should:
1. use their experience and skills to make the company a success;
2. follow the company’s rules as stated in the Articles of Association;
3. act in the interest of the company not themselves;
4. disclose any personal interest in any company transactions;
5. keep the company records and report any changes to Companies House and HMRC;
6. make sure the company’s accounts give a ‘true and fair view’ of the business’ finances; and
7. register for self assessment and submit a personal self assessment tax return each year
A director can delegate or outsource some of these tasks but remains legally responsible for them. If a director does not follow the rules, they may be found personally liable for the company’s liabilities, be fined, be prosecuted or be disqualified as a company director.
Tracy Newman can advise on running a limited company.