HMRC and Companies House explained

HMRC and Companies House operate independently as distinct government entities with minimal interaction. As a result, business owners may need to submit the same information to both organisations, including accounts, tax returns, and updates like address changes.

HMRC

HMRC, or His Majesty’s Revenue & Customs, is the government department responsible for collecting the right amount of tax.

The HMRC Charter outlines the standards of behaviour and values that HMRC is expected to uphold. This Charter, which is a legal requirement, can be accessed at the following link: HMRC Charter.

Interestingly, HMRC refers to taxpayers as "customers," which seems unusual since customers typically have the option to choose where they spend their money. However, taxpayers do not have the ability to shop around for tax services, making the term "customer" somewhat peculiar.

HMRC and Agents

HMRC refers to accountants and tax advisors as "Agents." Before an Agent can interact with HMRC on your behalf, an authorisation process must be completed. This involves filling out an "Authorising your agent (64-8)" form. Your Agent may initiate this process online, after which HMRC will send you an authorisation code by post within 7 working days. You must promptly pass this code on to your Agent so they can complete the setup. If not done within 30 days, the code will expire, and the process will need to be restarted.

For most taxes, this process applies uniformly. However, for VAT, HMRC usually provides a link for you to log into your Government Gateway to authorise your accountant.

You can file a self-assessment tax return with HMRC through your Personal Tax Account. Additionally, you can view your filed returns, check any taxes owed, notify HMRC of changes to your details, and manage other tasks through your Personal Tax Account login.

If you have a limited company, you can establish a Business Tax Account.

If you have an accountant, they will use their own commercial software to file returns and accounts with HMRC. They should not use, nor should they have access to, your tax account login details under any circumstances.

For any filings made with HMRC, whether by you or your accountant, you will need your tax reference numbers. Each type of tax—income tax, corporation tax, PAYE, and VAT—has its own unique reference number.

Companies House

Companies House is responsible for incorporating and dissolving limited companies in the UK. They maintain the register of companies, store company information, and make it accessible to the public. They do not hold information about sole traders.

You can search for details of any company and view their filings on the Companies House website. find-and-update.company-information.service.gov.uk

Filing with Companies House

Limited companies must file their annual accounts with Companies House, but not their tax returns. Additionally, they need to submit an annual Confirmation Statement, as well as periodic updates for any changes in company details, such as changes in directors.

To file anything with Companies House, you will need the company number and the unique company authentication code. If you do not have the authentication code, it can be requested at Companies House.

The code is typically sent to the registered office of the company. If you do not have access to the registered office, you can, under certain circumstances, request for the code to be sent to your home address.