Inform Your Accountant of Director Changes to Your Limited Company

As a director of a limited company, your accountant needs to know about any changes in directorship. This is good practice. And ensures compliance with legal requirements and maintains the integrity of your company’s records.

Why Companies House Needs to Be Updated

When changes are made to the directors of your company, it’s essential to update Companies House. The reasons are multifaceted:

1. Legal Compliance: The Companies Act 2006 requires that any changes in directorship be reported to Companies House within 14 days. Failure to do so can result in penalties and legal issues.
2. Transparency: Keeping accurate records ensures transparency. This is important for stakeholders, including creditors, investors, and clients, who rely on the information registered with Companies House to make informed decisions.
3. Record Accuracy: Accurate records help in maintaining the integrity of your company’s data. This becomes crucial during audits, tax filings, and any due diligence processes.

Confirmation Statements

Every year, your company must file a confirmation statement with Companies House. This document confirms that the information Companies House holds about your company is accurate and up-to-date.

• Director Information: The confirmation statement includes details about the company’s directors. Any changes made throughout the year should be reflected here to ensure accuracy.
• Penalties for Non-compliance: Not filing the confirmation statement on time can lead to penalties and even the striking off of your company from the register.

The Role of Chartered Accountants

Chartered accountants play a crucial role in ensuring that your company complies with all regulatory requirements. Here’s why you should keep them informed and check out our short blog here:

1. Regulatory Standards: Chartered accountants, especially those affiliated with the ICAEW, adhere to high standards of practice and conduct. They are required to perform checks and maintain detailed records as part of their regulatory obligations.
2. Expert Advice: Accountants can provide expert advice on the implications of changes in directorship, ensuring that all necessary filings and updates are done correctly and on time.
3. Access to Companies House: Many accountants manage their clients’ access to Companies House, handling filings and updates directly. Keeping them in the loop allows them to manage these processes efficiently, avoiding any lapses or errors.

Conclusion

In summary, keeping your accountant informed about changes in your company’s directors is not just about maintaining good practice; it’s about ensuring legal compliance, transparency, and accuracy. By doing so, you help your accountant to keep your company’s records up-to-date, avoid penalties, and maintain the trust of all stakeholders involved.

Remember, regular communication with your accountant can save you from potential legal and financial pitfalls, making your business operations smoother and more reliable. If you have any changes in your directorship, inform your accountant immediately to ensure seamless updates and compliance.

If you want to discuss your accounting requirements do get in touch. Not only can we help with your questions, we can offer you support with your tax, management accounting and so much more. You can contact us on 01992 444466.  We’re accountants for businesses and for people. We’re here to help.

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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors

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