Glossary

Companies House

Based in Cardiff this is a government agency which deals with all the paperwork relating to the formation and control of a limited company

Dormant Company

A dormant company is a limited company that is not active.  HMRC’s basic definition is that it is not trading.  Companies House’s basic definition is that it has had no financial transactions through it in the year.

Limited Company

A limited company is a separate legal entity formed through which to run a business.  It can offer some degree of protection to those to whom it belongs (the shareholders) but it does mean increased legal responsibilities.  Crucially the company’s bank account is not your bank account and you cannot use it in the same way as the bank account for a self-employment.

www.gov.uk/business-legal-structures/limited-company

P11D

Where employee benefits are not payrolled a P11D will be required

PAYE Deductions

Pay As You Earn (PAYE) covers tax and the National Insurance paid by both Employers and Employees.

RTI

The Real Time Initiative is the process by which Employers report to HMRC the details of payments made to Employees on or before payday.

Starters and leavers are also reported together with changes such as an employee reaching State Pension age or becoming a director.