Companies House Vs. HMRC: What are their Roles for UK Companies?

Ryan Patrick

• 5 min read
Companies House Vs. HMRC: What are their Roles for UK Companies?

Once you form a business in the UK, you cross paths with HMRC and Companies House often. But what are they? What roles do they play in the business world? Whether you intend to set up a company in the UK or you're already established, you need to know the roles of these government agencies.

In this blog, we'll look into functions and roles in UK companies and the information you must send them for your business to remain compliant.

Companies House vs. HMRC: What are they?

Companies House is a UK regulatory agency for limited companies. This regulatory body functions as an executive agency of the United Kingdom government under the jurisdiction of the Department for Business and Trade.

HM Revenue and Customs (HMRC), established in 2005 following the merger of Inland Revenue and Customs and Excise, is a governmental department tasked with managing the UK tax system. Its responsibilities encompass the collection of taxes such as Corporation Tax and VAT.

Although Companies House and HMRC function separately, they maintain a cooperative relationship in specific domains. This collaboration enables the sharing of crucial data, streamlines processes, and enhances overall effectiveness, ultimately benefiting both organisations.

Companies House provides HMRC with updates on newly incorporated companies and relevant changes in company information. HMRC operates a shared filing system with Companies House for aspects like limited company financial statements and annual accounts.

These organisations work closely to fight economic crime by enhancing corporate transparency and improving the quality of companies' registered data.

Companies House Role

Companies House is a companies registrar in the UK, and it's responsible for the following:

  • Registering and dissolving limited companies
  • Update corporate data and maintain companies' register
  • Examine and store companies' data
  • Make company information available on the official companies register and open to the public (Companies House register)
  • Provide company search and electronic filing service
  • Publishing quarterly and annual data regarding the formation and closure of companies, insolvency proceedings, liquidations, and corporate adherence to regulations.

Each company incorporated in the UK must be registered by Companies House and adhere to their filing and reporting requirements.

HMRC Roles

HMRC is the United Kingdom's authority on tax payments and customs. It is often referred to as 'the tax office,' this non-ministerial governmental body generates revenue through the collection of taxes.

HMRC collects, regulates, and administers the following taxes:

  • Income Tax
  • National Insurance contributions
  • Corporation Tax
  • Stamp Duty
  • Inheritance Tax
  • Environmental taxes
  • Value Added Tax (VAT)
  • Capital Gains Tax (CGT)
  • Customs and excise duties

The HMRC is also responsible for:

  • Enacting and ensuring compliance with the National Minimum Wage
  • Student loan repayment recovery
  • Distributing certain types of government assistance to individuals and businesses, such as tax credits, statutory sick pay, child benefit support schemes, and coronavirus grants
  • Refunding tax overpayments
  • Investigating tax evasion cases
  • Anti-money laundering supervision
  • Enforcing rules and protocols aimed at fighting financial crime

The UK government uses the money the HMRC collects to fund public services and offer tailored financial assistance to people and businesses where necessary.

The Information You Must Provide to HMRC and Companies House

When registering a company with the Companies House, you will fill out an application to register your business using form IN01. You need to have a company name, your company's details, and the people who control and own it. After the successful formation of your company, you're legally responsible for filing details and reports with HMRC and Companies House.

Information you Provide to the Companies House

As long as your business exists, you must provide this information to companies House:

  • Annual confirmation statements
  • Annual accounts
  • Significant changes in your company information

Remember, you're required to maintain your statutory registers up-to-date and your company accounting records accurate at your registered office.

The Information you Provide to the HMRC

The first thing you do to the HMRC is to register your business for taxes like corporation tax. During the registration process for Corporation Tax, you'll be requested to furnish various details about your business, including the period covered by your annual accounts.

After that, you will send this information to HMRC:

  • Annual accounts
  • Company tax returns
  • PAYE reports
  • VAT returns
  • Self-assessment tax returns

You will also make other payments to HMRC, such as corporation tax, national insurance, VAT, and income tax, by given deadlines where applicable.

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Which Information is Stored at Companies House?

There's a lot of corporate information available at the Companies House, including statistics and details that are used by businesses, public members, public bodies, and government departments. When registering a company, you provide certain information. Inside, there's an update on the information you must inform this company's registrar and file specific documents annually. The company data stored at the Companies House include:

  • Company day of formation
  • Company name and registration number
  • Company type, e.g., limited by shares, limited liability partnership, etc.
  • Jurisdiction of incorporation
  • Registered office address
  • Information of company officials like directors, guarantors, shareholders, secretaries, LLP members, people with significant control and previous officials details
  • Standard industrial classification (SIC) code
  • Change of company appointments and details
  • Filed statutory documents like confirmation statements and annual accounts
  • Notices of missed or late statutory document filling
  • Insolvency information
  • Mortgage data
  • Disqualified directors
  • Dissolved companies details
  • Voluntary or compulsory strike-off action

This information is available and valuable to the public and other organisations, ensuring the companies are genuine and legally operating. This amount of information enables

  • Investors should research a company before investing
  • International companies can assess suitable locations in the UK
  • Banks can develop insights into their corporate clientele

FAQs

What is the role of the Companies House in the UK?

Companies House is an agency under the Department for Business and Trade that deals with company incorporation and dissolution. They register companies and make the information available for public access.

What does the HMRC do?

This is the UK authority on taxation payments and customs. Its primary role is to gather money that finances the country's public service and provide financial assistance to targeted individuals and families.

Is Companies House for UK companies?

Yes, it oversees the regulation and registration of limited liability partnerships and limited companies in the UK. Serving as the official registrar of companies, it operates across three distinct jurisdictions: Scotland, Northern Ireland, and England and Wales.

Winding Up

Companies House serves as the regulatory agency for limited companies in the UK, managing corporate registrations, updates, and data storage. Meanwhile, HMRC oversees taxation, customs, and financial support distribution, ensuring compliance and revenue collection. Despite operating independently, both entities collaborate to enhance data sharing and streamline processes, contributing to economic transparency and efficiency. Ultimately, their efforts sustain public services and provide targeted financial aid.