There are many reasons you may wish to complain - this step-by-step guide shows you how to do it, plus how to seek redress if contacting the company directly doesn't help.

1) Contact the company

There are many reasons why you may wish to complain to a company. Whatever your complaint, you should give the company a chance to put things right.

So, the first step is to complain directly to the company in question. It’s best to put your complaint in writing, either in a letter or by email.

If the company has an official complaints procedure, follow its instructions and be sure to escalate your complaint through the company's official process if you wish to take the matter further.

Be sure to keep a copy of all documents you send to the company, such as bills and contracts, and a note of when you sent them.

Some companies, especially within the personal finance sector, have a set a time limit to resolve most complaints.

After this point, if you're still unhappy with the outcome, you may wish to refer your problem to the relevant ombudsman or use an alternative dispute resolution (ADR) scheme.

CAUTION

Top tips

In the first instance, complain to the company

If the result is unsatisfactory, escalate your complaint through the official complaints procedure

If your complaint is not resolved, you may be able to take your case to an ombudsman

The small claims court may be another last resort

How to Complain to a Company

Before escalating your complaint to an ombudsman/court, you will need to obtain evidence to support your claim. For example, if your complaint is about a faulty car, have another mechanic confirm what the fault is and the cause of it.

Be aware that, if you use that same expert to carry out any repairs, this makes them less “independent” and can therefore reduce the strength of your evidence.

Obtaining evidence can incur a fee so don’t forget to include this in your claim!

2 Use an ADR scheme

Companies within certain sectors are required to offer an alternative dispute resolution (ADR) service – for instance, telecommunications companies.

In some other sectors, there are mediation and arbitration schemes, especially if a company is part of a trade association – for example, travel companies or builders.

ADR schemes can help both parties to find an amicable solution, as well as provide independent arbitration to adjudicate on a dispute.

The decision of an arbitrator is binding on both parties. If you’re unhappy with the decision, you will not be able to take the matter to court afterwards, or use an ombudsman service.

3 Refer to an ombudsman

Ombudsmen are a form of ADR. Before you go to an ombudsman, you usually need to have reached a position of deadlock with the company.

This happens when you’ve been through a company’s official complaints procedure, and come to a point where the company believes that it can do nothing more to rectify the situation.

You can ask the company for a letter of deadlock to show you’ve done all you can to resolve the complaint.

Ombudsmen can act as independent referees, looking at both sides of the dispute in order to offer a solution.

They will act only when service or administrative errors have occurred. You can find out more about when to take a complaint to an ombudsman in our guide.

All ombudsmen services have slightly different conditions regarding timing.

Some may require you to give the company more time to resolve the issue than others, and there are limits as to how old a complaint can be for an ombudsman to look at it.

The main public or government schemes that may be able to help if you wish to complain about a company are:

the Financial Ombudsman Service – for complaints about banks, investment companies, insurance companies and other financial services companies

Communications and Internet Services Adjudication Scheme (CISAS) – for complaints about telephone, mobile and broadband companies

the energy ombudsman – for complaints about an energy company

the consumer ombudsman – accepts all consumer complaints about retail companies; home maintenance, improvement or installation services; second-hand cars; car repairs and car servicing.

Remember, contacting an ombudsman is a last resort, so do all you can to rectify the situation with the company first.

4 Use the small claims court

You can use the small claims court as a final solution if you feel that a company has breached its contract. Before you use the small claims court, you'll need to demonstrate that you have tried all other routes to seek redress.

The total amount of money you can claim in the small claims court in England and Wales is £10,000, in Scotland it's £5,000 and Northern Ireland it's £3,000.

Sole Trader Definition

The meaning of sole trader is somebody who is self-employed but is also the exclusive owner of their business.

The term is used to describe the type of business structure you use. As a sole trader, you (the business owner) and the business itself are considered one legal entity, so you are entitled to all profits after tax. You can have employees but remain the sole owner of the business and must register as self-employed with HMRC to pay tax through the Self-Assessment process.

Working as a sole trader is the most popular option for self-employed professionals in the UK, as it is the simplest business structure.

What is the meaning of self-employed?

Generally speaking, self-employment means working for yourself and running your own business, rather than being an employee of another business. For employment law and tax purposes, however, the definition of self-employed is that you are fully responsible for the success or failure of your business and you pay tax through Self-Assessment rather than PAYE.

The term self-employment refers to the way you work, rather than your business structure. It means that you decide exactly what work you do and when you do it, though you also won’t receive sick pay or holiday pay for time off.

As somebody who is self-employed, you can choose from several legal structures for your business - sole trader, business partnership or limited company. A ‘sole trader’ is the sole owner of a business, meaning the owner and the business is one combined legal and financial entity; whereas a business partnership works in a similar way, but is shared between two or more co-owners. A ‘limited business’, however, functions as its own legal entity separate from the owner, so their personal finances are protected. Even if the business is run by one person, all limited companies must be registered with Companies House and have a director.

Sole trader vs. self-employed

To summarise, the main difference between sole trader and self employed is that ‘sole trader’ describes your business structure; ‘self-employed’ means that you are not employed by somebody else or that you pay tax through PAYE.

There can be crossover between the two – sole traders are self-employed, as they run their business by themselves. If you’re self-employed you do not necessarily have to be a sole trader, however, as you can choose from other business structures such as a business partnership or a limited company.

Examples of professionals who are self-employed:

• Freelance writers who work on a gig basis by themselves are both self-employed and will also be registered as sole traders

• Business consultants running their own small business can register as a limited company, but be self-employed

• A hairdresser renting a chair in a salon on a self-employed basis, so is responsible for their own taxes

• A plumber who runs their own plumbing business and is the sole owner is both self-employed and a sole trader

Responsibilities of self-employment

If you’re working on as a self-employed basis you must inform HMRC

of your set up within three months, as you will then be responsible for completing a Self-Assessment tax return each year and paying National Insurance contributions and income tax on the profit you make. If you are starting a limited company you must also register with Companies House.

You may also want to consider purchasing business insurance to protect you from the common risks that come with self-employment, as well as risks associated with your industry. Hiscox’s specialist self employed insurance can be tailored to include covers such as public liability, professional indemnity, office contents and cyber and data risk.

While these forms of cover are not legally required by businesses in the UK, if you hire one or more employees you are obliged to have employers’ liability insurance to cover claims from employees of illness or injury caused by their work.

If you’re looking to submit a tax return for the first time, you’ll need to register for self-assessment first.

The steps are below.

Register with HMRC: The process will vary depending on whether you’re self-employed, registering a partnership or not self-employed - you should click on the option that applies to you. You can register online via HMRC.

Get your Unique Taxpayer Reference (UTR) number: HMRC will send this to you in a letter after you register. The letter will give instructions on how to set up your Government Gateway account.

Use your activation code for your Government Gateway account: Once this is done, you’ll be sent another letter in the post containing your activation code. You’ll need this to complete the set-up of your account - you should do this promptly as the code will expire.

Complete your account setup: It's only once your Government Gateway account is up and running that you'll be able to log in and submit your tax return.

HMRC warns that the whole process could take up to 20 working days, so make sure you don’t leave it until the last minute.

How to fill in a self-assessment tax return

When you submit your tax return online, you’ll just need to fill out the sections that apply to you. We explain the process in our guide to online tax returns.

For paper tax returns, you’ll need to work out which sections are relevant. Most people will just have to fill out the SA100 form. However, there are several supplementary pages that may apply to your circumstances. We explain more in our guide to paper tax returns.

Some employees, pensioners and self-employed people with a turnover of under £85,000 can be sent a simplified SA200 return. At four pages long, it's much shorter. Unfortunately, you can’t opt to fill in this shorter form - HMRC will decide and send it out to you.

Details you may need to include on your tax return include:

Income: all taxed and un-taxed income from self-employment, taxable interest from savings, dividends from shares, or capital gains from selling assets

State pension: the total amount of state pension payments you were entitled to receive, plus any lump sum

Private pensions: detail the gross amount of any annuities or lump sums

Benefits: include anything you’ve received in incapacity benefit and jobseeker’s allowance, plus the total of taxable benefits from bereavement allowance, carer’s allowance or industrial death benefit

Other income: this is anything not related to interest or dividends, and you can also include any allowable expenses related to this income

Pension contributions: all payments where deductions were made after tax

Charitable donations: include the total amount of Gift Aid donations

Blind Person’s Allowance: you just need to confirm whether or not you’re claiming this

Student loan repayments: detail deductions made by your employer

High income child benefit charge: this is only for those receiving child benefit when they, or their partner, earn more than £50,000

Marriage allowance: the marriage allowance means you can transfer some of your personal allowance to your spouse if your income is less than the personal allowance (£12,570 in 2021-22).

Before you start filling out your tax return, it’s best to gather all of the information you’ll need.

Make sure you have records of:

Your National Insurance number.

Your UTR number.

Accounts, invoices, receipts or other records of income.

Records of any relevant expenses.

Contributions to pensions or charities

P60 and/or P45 forms.

Depending on your circumstances, you might need extra records, such as tenancy agreements.

Self-assessment tax return deadlines

Self-assessment tax is based on your income from the last tax year - not on the calendar year.

The tax year runs from 6 April to 5 April, and your tax return will be due the following January.

The self-assessment deadlines for you 2021-22 return are as follows:

5 October 2022: deadline to register for self-assessment for the first time

31 October 2022: paper tax return deadline

31 January 2023: online tax return deadline

31 January 2023: tax payment deadline for 2021-22 tax owed, plus any outstanding tax from 2020-21 if you took out a payment arrangement with HMRC. If you pay your tax by payments on account you may have already made payments towards this bill.

HMRC has the power to charge increasingly expensive penalties if you miss the tax return deadline, which starts with a £100 fine from the first day your return is late.

If you don't pay your tax by 31 January 2022, you will be charged interest. HMRC's interest rate has changed several times since December 2021, in line with the Bank of England base rate. It is currently 3.5%.

Find out more: Late tax returns and penalties for mistakes

What is a company tax return?

A company tax return is used to report your spending, profits, and corporation tax due to HMRC. It involves completing a CT600 form and submitting a financial report with calculations that show how much you owe in tax.

Our guide to corporation tax has more on when to pay and how to register.

When to file your company tax return

You need to file one of these if your company gets a ‘notice to deliver a company tax return’ from HMRC.

Keep in mind that even if your company has made a loss, or if you have no corporation tax to pay, you still need to file.

The deadline for filing is 12 months after the end of the accounting period the return covers. Your accounting period is normally the same as the financial year covered by your company’s annual accounts – but it might be different in some circumstances, for example your first year of trading. In that situation, you'd need to send two tax returns to cover your first year.

If you’re not sure when the end of your accounting period was, you can sign in to your HMRC business tax account to check.

Limited company tax return example

For example, if you start your business on 15 January 2020, Companies House will set your financial year to end on 31 January 2021.

This means you’ll need to file two tax returns in your first year. One to cover the first 17 days and one to cover the following 12 months.

After your first year of trading, your accounting period will run from 1 February to 31 January.

A company tax return should show:

• your company’s profit or loss for corporation tax (which isn’t the same as profit or loss shown in your annual accounts)

• your corporation tax bill

You can file your accounts with Companies House and your company tax return with HMRC at the same time if your limited company doesn’t need an auditor. You can file these online (you can’t use the paper CT600 form unless you have a reasonable excuse or you want to file in Welsh).

Most small companies won’t need an audit – HMRC say they generally only need one if it says they do in their articles of association, or their shareholders ask for one.

What is a CT600?

The company tax return is also called form CT600. It'll include standard company information, but you also need to do some complex calculations. Depending on your company these include calculations like:

• turnover

• income (including profits, trading losses brought forward, property income)

• chargeable gains

• profits before other deductions and reliefs

• deductions and reliefs

• tax reliefs and reductions

• tax reconciliation

• losses

The accounts and computations part of the company tax return must be in the Inline eXtensible Business Reporting Language (iXBRL) format.

Because filing the return is complex, HMRC publish this CT600 Guide for 2021 to help small business owners.

You should check that out for more information, and again, keep in mind that many limited companies get professional help from tax advisers and accountants when preparing their return.

What are the penalties if you file a late company tax return?

As you might expect, there are fines for filing late.

How late is your return?

Penalty

One day late

£100

Three months late

A further £100

Six months late

HMRC will estimate your corporation tax bill and add 10 per cent of the bill as a penalty

12 months late

Another 10 per cent of the tax liability

How to pay your HMRC corporation tax bill

The deadline for paying your corporation tax bill (for companies with taxable profits of up to £1.5 million) is nine months and one day after the end of your accounting period.

You can pay by:

• online or telephone banking and CHAPS (same day or next day)

• Bacs, Direct Debit (if you’ve already set one up), online with a debit or corporate credit card, at your bank or building society (three working days)

• Direct Debit, if you’ve not set one up before (five working days)

You can pay corporation tax at gov.uk.

What are the penalties for paying your corporation tax late?

If you don’t pay on time, HMRC say that they'll charge you interest on a daily basis. This starts from the day after you should’ve paid and continues until you eventually pay it.

HMRC say that late payment interest is actually tax deductible for corporation tax purposes, which “means you can include this expense in your company accounts for the accounting period (or periods) when the interest was incurred.”

If you’re VAT registered, you must sign up and follow the rules for ‘Making Tax Digital for VAT’. This means you’ll:

• keep digital records

• submit your business’s VAT return using compatible software

If you’re not already signed up, find out when to sign up and start keeping digital records.

There’s a different way to sign up if you’re an agent.

Before you start

You must have compatible software before you sign up.

What you need

To sign up you need:

• your business email address

• a Government Gateway user ID and password - if you do not have a user ID, you can create one when you use the service

• your VAT registration number and latest VAT return

You’ll also need:

• your National Insurance number if you’re a sole trader

• your company registration number and Unique Taxpayer Reference if you’re a limited company or registered society

• your Unique Taxpayer Reference and the postcode where you’re registered for Self Assessment if you’re a general partnership

• your Unique Taxpayer Reference, the postcode where you’re registered for Self Assessment and your company’s registration number if you’re a limited partnership

When to sign up

If you already pay by Direct Debit, do not sign up too close to the date your return is due, or you might pay twice.

To avoid paying twice, only sign up:

• more than 7 days before your return is due

• more than 5 days after your return is due

If you pay any other way than Direct Debit, sign up more than 3 days before your return is due.

Sign up for Making Tax Digital for VAT

Sign up now

You can reclaim VAT on items you buy for use in your business. Do this in your VAT return.

If those items are also for personal use, you can only claim the business proportion of the VAT.

Examples

Half of your mobile phone calls are personal. You can reclaim 50% of the VAT on the purchase price and the service plan.

You work from home and your office takes up 20% of the floor space in your house. You can reclaim 20% of the VAT on your utility bills.

You must keep records to support your claim and show how you arrived at the business proportion for a purchase. You must also have valid VAT invoices.

If you reclaim VAT on goods or services which you’ve not paid for, you must repay HMRC. This is called ‘clawback’. Read the guidance on clawback to find out when and how to repay VAT you previously reclaimed.

If you sell both taxable and exempt goods

If you sell goods or services that are a mixture of taxable and exempt from VAT, your business is considered ‘partly exempt’. Find out about partial exemption and how to calculate what you can reclaim.

Purchases before registration

You can reclaim VAT paid on goods or services bought before you registered for VAT if you bought them within:

• 4 years for goods you still have or goods that were used to make other goods you still have

• 6 months for services

You can only reclaim VAT on purchases for the business now registered for VAT. They must relate to your ‘business purpose’. This means they must relate to VAT taxable goods or services that you supply.

If you use the VAT Flat Rate Scheme

You cannot reclaim the VAT on your purchases - except for certain capital assets over £2,000.

Read section 15 of the guidance on the Flat Rate Scheme for small businesses to find out when you can reclaim VAT.

Vehicles

You might be able to reclaim all the VAT on a new car or commercial vehicle if you use it only for business. You must be able to show that it is not used on a personal basis, for example it’s specified in your employee’s contract.

‘Personal use’ includes travelling between home and work, unless it’s a temporary place of work.

You might also be able to claim all the VAT on a new car if it’s mainly used:

• as a taxi

• for driving instruction

• for self-drive hire

If you buy a used car for business use, the sales invoice must show the VAT.

If you hire a car to replace a company car that’s off the road, you can usually claim 50% of the VAT on the hire charge.

If you hire a car for business use only, you can reclaim all the VAT if you hire it for no more than 10 days.

Fuel costs

There are different ways of reclaiming VAT on fuel, if you do not pay a fixed rate under the Flat Rate Scheme.

You can reclaim all the VAT on fuel if your vehicle is used only for business.

If you use the vehicle for both business and personal purposes, you can either:

• reclaim all the VAT and pay the right fuel scale charge for your vehicle

• only reclaim the VAT on fuel you use for business trips - you’ll have to keep detailed mileage records

You might choose not to reclaim any VAT, for example if your business mileage is so low that the fuel scale charge would be higher than the VAT you can reclaim.

If you choose not to reclaim VAT on fuel for one vehicle you cannot reclaim VAT on any fuel for vehicles used by your business.

Additional vehicle costs

You can usually reclaim the VAT for:

• all business-related running and maintenance costs, like repairs or off-street parking

• any accessories you’ve fitted for business use

You can do this even if you cannot reclaim VAT on the vehicle itself.

Travel expenses

You can reclaim VAT on employee travel expenses for business trips. Travel expenses can include transport, meals and accommodation that you pay for. Find out who counts as an employee.

You can reclaim VAT on other kinds of expenses (not just those related to travel) for self-employed people who are treated as employees.

You cannot reclaim VAT if you pay your employees a flat rate for expenses.

Business assets of £50,000 and more

There are special rules for reclaiming VAT in the Capital Goods Scheme, which means you must spread the initial VAT claimed over a number of years.

What you cannot reclaim

You cannot reclaim VAT for:

• anything that’s only for personal use

• goods and services your business uses to make VAT-exempt supplies

• the cost of entertaining or providing hospitality to people you do business with (for example theatre or sports tickets)

• goods sold to you under one of the VAT second-hand margin schemes

• business assets that are transferred to you as a ‘going concern’

There are 8 types of companies in the UK: public limited company (PLC); private company limited by shares (LTD); company limited by guarantee; unlimited company (UNLTD); Limited Liability Partnership (LLP); Community Interest Company; Industrial and Provident Society (IPS) and finally, Royal Charter (RC).

The distinction between the different types has important ramifications for the legal status of the company, particularly with regards to ownership and what happens if the company goes into liquidation.

Here, we’ll explain some of the most common types of company in the UK and what they mean for your business.

Public limited company (PLC)

A public company is a corporation whose ownership is open to the public. Anyone can buy shares in the company’s stocks.

A limited company is a corporation in which an individual’s financial liability for the company is restricted to a fixed sum - this sum is usually the value of their investment.

A PLC is a combination of these two concepts - it is a public company whose shareholders (who could, theoretically, be anyone) are responsible for the company’s financial liabilities to the extent of their investment.

The other key point of note is that before a PLC can start business, it must have allotted shares to the total value of at least £50,000.

Private company limited by shares (LTD)

In contrast to a public company, a private company cannot be owned by any members of the public. It will instead be owned by an NGO (non-government organisation) or a relatively small number of shareholders, and the sale of company shares is handled privately.

However, these companies are limited, like PLCs, and this has the same implications for a private company as it does for a public company. Once again, an individual is only responsible for the business’s financial liabilities to the extent that they invested in the company.

Private limited companies are one of the most common types of companies.

Company limited by guarantee

A company that is limited by guarantee is very different to the two previous types of limited company. In this case, the individuals are not responsible for a fixed sum based on their investment, as this company status is reserved for companies that don’t have shareholders, like smaller, non-profit organisations.

Instead of shareholders, these companies typically have a group of members who act as guarantors and agree to contribute a nominal sum towards the winding up of the company, in the case of such an event occurring.

According to UK law, these companies have to include ‘Limited’ in their names, but exceptions can be made, for example, in the case of companies that are not distributing their profits to its members.

Unlimited company (Unltd)

The key difference between limited and unlimited companies is that there is no formal restriction on the amount of money that shareholders have to pay if a company goes into formal liquidation.

In the event of a formal liquidation (and only then), the shareholders are responsible for completely settling the company’s outstanding financial liabilities, regardless of the extent of their investment in the company.

Limited liability partnership (LLP)

The first thing to note about LLPs is that they are not legally treated as partnerships in the UK, instead, they are treated as incorporated bodies that are more similar to the other types of company looked at in this post.

For a business to be an LLP, some or all of the partners have to have limited liabilities, which means that they are only responsible for their own misconduct or negligence, rather than being responsible as a collective (which is the more traditional partnership model).

Another key element of an LLP is that, unlike other corporations, the partners are allowed to directly manage the business. In other company types, the shareholders have to vote to elect a board of directors, and the board employs other people to manage the company.

Community interest company

This is a status that was created for companies that are not driven by the objective of maximising profits for their shareholders, but with the intention of using their assets and profits for the good of the communities that they’re in.

These companies are made to be easy to set up, and they run on the basis that any money they make is not distributed to shareholders, but goes to improving the area around them.

Many community interest companies will still put profits back into the company, but that will be done with the intention of improving the community services that they offer.

Industrial and provident society (IPS)

Industrial and provident societies are worth a mention, as they were a major company type for many years.

Since 2014 they have been replaced everywhere in the UK, except Northern Ireland, by newer types like the community interest companies mentioned above, and by other names, such as cooperatives and community benefit societies.

Royal charter (RC)

If a company or organisation has been created by Royal Charter, it means that it has been granted power or a right by the monarch. Once upon a time, all companies had to be approved by Royal Charter, but those days are long gone, and other methods of starting a company have become far more prevalent.

Notable examples of chartered organisations include the BBC, the Bank of England and the Royal Opera House. It’s worth knowing that chartered companies exist, but it’s unlikely that this type of company will have much bearing on your day to day business.

The confirmation statement is a document that limited companies and LLPs must file at Companies House each year. For companies, the confirmation statement contains details of its directors and shareholders, while the confirmation statement of an LLP lists its members. For both limited companies and LLPs, the confirmation statement also shows the business's registered office address.

The confirmation statement replaces the annual return which also had to be filed with Companies House every year, but usually on the anniversary of the business’s incorporation. Just like the annual return, the confirmation statement gives Companies House a yearly snapshot of the management and ownership of the business and carries an annual filing fee.

The confirmation statement is a separate document from a business’s accounts and a company’s Corporation Tax Return.

The confirmation statement cannot currently be filed using FreeAgent but can be submitted directly to Companies House using the HMRC website.

When your company was formed it was added to the Companies House register of companies. When we talk about a company being dissolved we’re referring to the opposite process, where a company is removed (‘struck off’) from the register and it ceases to exist as a separate legal entity.

In some situations Companies House takes matters into its own hands and strikes off a company itself. This includes cases where the directors have failed to keep up with their reporting requirements. In most situations though, the company itself brings about dissolution by making an application to Companies House. See our guide ‘How do I dissolve my company?’ for a rundown on what’s involved here.

So then, what’s a dormant company? Companies House classes a dormant company as one that ‘has had no significant accounting transactions during the accounting period’. This means it is completely inactive and you don’t use it for any transactions (no matter how small), although you are still required to ‘check in’ with Companies House each year by filing dormant company accounts and an annual return.

So long as you keep up with these very basic filing requirements you can keep a dormant company going indefinitely.

Can I resurrect a dissolved company if required?

In theory you can, although there are two important points you need to be aware of.

Firstly, there’s the fact that if you voluntarily applied to have your company struck off you’ll have to get a court order to have it restored. As a general rule, you can apply for this for up to six years from the date of dissolution. It involves completing a formal claim form and a witness statement setting out the reasons for the request.

The whole process takes a minimum of three months and, when you take into account court fees, treasury solicitors’ fees and your own legal costs, it is easy to rack up a bill around the £1,000 mark.

Secondly, while a company is dissolved there’s nothing to stop that company name being re-used by someone setting up a new company. This new registered company will have a different company number and will be a completely different entity to your old company, but it means that if this happens and you did wish to restore your old company you’d have to do so under a new name. By contrast, if you maintain a company as dormant the name cannot be used by anyone else.

What’s involved in keeping a company dormant?

Here’s a rundown on what it takes to make a company dormant and how to keep it that way:

• Tie up any loose ends by paying outstanding creditors and cancelling business contracts, both with customers and, for example, with utilities and other service providers.

• Discharge any outstanding liabilities with HMRC and pay any outstanding VAT. Inform your local Corporation Tax Office that your company is now dormant. You will then be sent a notice to pay any Corporation Tax still owed.

• There’s no need to specifically inform Companies House that you’ve become dormant. On an ongoing basis, however, you are required to keep up with your annual filing requirements. This involves dormant company accounts, which consist essentially of a balance sheet demonstrating that your company has not been involved in any transactions over the last year. It also includes an annual return, a snapshot of current information concerning the company. The filing fee for this is £40 if you file by post or £13 if you do it online.

Dissolved or dormant: what’s the best option?

Dissolving your company tends to be appropriate where there’s no reasonable prospect of you having a future use for it. For instance, perhaps it was set up to exploit a very specific opportunity and this has now run its course. Sometimes companies can become redundant because of a takeover or wider re-organisation of your business structures.

Keeping it as dormant tends to be preferable where there’s a chance the company will be needed again. This could be where there’s an outside chance that you’ll be able to secure investor interest in a particular idea or where there could be a sudden change in market conditions in your favour. If the name of the company relates to a brand that you have previously worked hard to build, is there a chance that the brand could be used to promote a new idea in the future?

Looking for a new idea to exploit under your existing company name? Check out our help centre for hints and tips, or read our free company formation guides for a step-by-step on how to set up a new company.

A Unique Taxpayer Reference (or UTR) number is a ten-digit code that's unique to you or your company.

It's intended to identify you or your business personally with HMRC for anything and everything that has to do with your tax obligations. Your UTR number will remain the same throughout your entire life, just like your National Insurance Number.

HMRC uses your UTR number to keep tabs on your tax obligations.

It provides them with an easy way to match records to payments and monitor for suspicious activity. You'll need your UTR number to complete self-assessment tax returns, work with accountants, and pre-pay taxes in instalments.

Company vs. Personal UTRs

Personal UTRs are automatically issued by HMRC to anybody who registers for self-assessment. These numbers cannot be utilized as your company UTR. Instead, you'll be assigned a separate UTR for your company after it's incorporated.

You don't need to do any work to make this happen. Companies House will notify HMRC at the appropriate time and, within days following company formation, you should receive a letter from HMRC that includes your company's UTR.

The letter will be addressed to your registered office address and will not be sent to your own personal address.

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A unique taxpayer reference (or UTR) number is a ten-digit code that's unique to you or your company.

It's intended to identify you or your business personally with HMRC for anything and everything that has to do with your tax obligations. Your UTR number will remain the same throughout your entire life, just like your National Insurance Number.

HMRC uses your UTR number to keep tabs on your tax obligations.

It provides them with an easy way to match records to payments and monitor for suspicious activity. You'll need your UTR number to complete self-assessment tax returns, work with accountants, and pre-pay taxes in instalments.

Company vs. Personal UTRs

Personal UTRs are automatically issued by HMRC to anybody who registers for self-assessment. These numbers cannot be utilized as your company UTR. Instead, you'll be assigned a separate UTR for your company after it's incorporated.

You don't need to do any work to make this happen. Companies House will notify HMRC at the appropriate time and, within days following company formation, you should receive a letter from HMRC that includes your company's UTR.

The letter will be addressed to your registered office address and will not be sent to your own personal address.

Why you need a UTR Number: 3 Reasons You Need It

You might not actually need one at all.

The only people who need UTR numbers are those who file Self-Assessment tax returns - that means that they've either set up a limited company or they're self-employed.

If you do file self-assessment tax returns, you need a UTR number so that:

1. HMRC can monitor your tax obligations

HMRC will use this reference to track your tax obligations, which could help you also get a tax refund if you've overpaid your tax.

2. You can file tax returns

You'll need it for your self assessment tax return if you're self employed, and your company UTR is used to calculate your company tax.

3. You can partner with accountants

Accountants and financial professionals will need to know your UTR to help with your filings and financial affairs.

UTR Numbers Guide

Email Address

Where to find your UTR number: 5 Places to Find a UTR

You can find your UTR number in a variety of ways, provided you've already got one.

It should be easy to identify thanks to its length; your UTR can be easily located on numerous documents from HMRC, including:

1. Previous tax returns

2. Payment reminders

3. Notices to file tax returns

4. Statements of account

5. The "Welcome to self-assessment" letter (SA250)

Your UTR number can also be found online in your Government Gateway account. It's located in the top right-hand corner of your account summary.

UTR Number

How to Register & Get a UTR Number:

When you launch a limited company or get set up for self-assessment tax returns, you automatically undergo the UTR registration process.

You'll automatically receive a UTR number after the process is complete. Keep in mind that it can take some time to receive your number - it's best to apply a few months in advance of when you'll need your UTR number to ensure things go smoothly.

In order to register for your UTR number, you'll need to provide:

• Your full name

• Your current address

• Your National Insurance Number

• Your date of birth

• Your phone number

• Your email address

• The date that your self-employment began

• The type of business you're starting

• The address of your business

• The phone number for your business

Applying for your UTR number is free and - provided you've got all of the necessary information on hand - easy. You can notify HMRC online or print and fill out a form before posting it to them.

Finding a lost UTR number

Those who've lost their UTR numbers should act quickly to rectify the situation. You can find steps on how to find lost UTR numbers here.

When it comes to taxes and the government, it's always best to have your ducks in a row before deadlines start approaching. Try to have your National Insurance number at the ready and then ring HMRC's self-assessment helpline at 0300 200 3310.

For any general enquiries, you can reach out to HMRC Helpline numbers during their working days.

Telephone: 0300 200 3310

Outside UK: +44 161 931 9070

Opening times:

8am to 8pm, Monday to Friday

8am to 4pm Saturday

9am to 5pm Sunday

Transferring or Acquiring a Company UTR Number

If you purchase a company and continue to trade under the same company number then the UTR doesn't change.

If the assets and liabilities of the company are being transferred to the acquiring company (effectively meaning it's no longer trading as the same entity), then the acquiring company's UTR number will apply.

FAQs

How do I reactivate my UTR number?

Your UTR number will become inactive if you haven't used it for an extended period of time, such as when you've stopped submitting a Self Assessment tax return. Your UTR number will be reactivated once you begin submitting your tax return.

How do UTR numbers work for partnerships and limited companies?

The partnership will be issued a UTR number. Each individual partner will also be assigned a UTR number.

Similarly, each limited company director, along with the company will be issued a UTR number.

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How to request and manage the authentication code you'll need to file company information online- From Companies House.

The authentication code is a 6 digit alphanumeric code issued by us to each company. The code is used to authorise information filed online and is the equivalent of a company officer’s signature.

How to get the company authentication code

You can request to have your code sent to your:

• home address

• registered office address

Send to a home address

If you cannot access your company’s registered office address, you can request to have your authentication code sent to your home address instead.

Send to a registered office address

Request your code now. It’s sent by post to your company’s registered office and can take up to 5 days to arrive.

If you’re new to the service, you’ll need to:

1. Register your email address and password.

2. Select ‘Request an authentication code’.

3. Enter your company registration number.

4. Select ‘Request code’.

We’ll send your code by post to your company’s registered office. If your company already has a code, we’ll send a reminder.

For security reasons, we cannot send your authentication code by email or tell you over the phone.

How to use your code

You’ll use the same authentication code for your company for either our online filing services or third-party software.

To use our online filing services, you’ll also need to register your email address and password.

To use third-party software, you’ll need to set up an online filing account to get a presenter ID and presenter authentication code.

You cannot use your Government Gateway account to send Companies House information online.

Change or cancel your code

To change or cancel your code, use the ‘Company authentication’ section of our online filing service.

You can change your code to something more memorable, but do not make it easy to guess.

You must tell anyone else who files online for your company (such as an accountant) if you change your code, or they will not be able to file.

Looking after your code

You should treat your company’s authentication code with the same care as your bank card PIN. Anyone who knows your code is able to change your company’s details online.

To look after your authentication code:

• mix letters and numbers so your code is not easy to guess

• only share your code with someone you trust to file information for your company

• change your code if it’s known by someone you do not trust

• change your code if it’s known by someone who’s no longer authorised to file for your company (such as staff who’ve left your company, or your previous accountant)

We’ll never ask you what your authentication code is over the phone.

If you’re contacted by someone who asks for your code and claims to be from Companies House, you should report it to us immediately.