Changing your status:
Checklist
Bank Account
A limited company is its own legal entity and therefore requires a specific bank account to keep the limited company transactions separate to the previous Sole Trader records.
- New Current Account
- New Savings Account
- You will need to update any existing customers about your new bank details ready for your first invoice as a limited company
- You will need to change any DD and SO from the old bank account into the new Ltd
Insurance
Your insurance may not be valid unless you update with your new details
- Motor
- Public Liability
- Tax Investigation Insurance
- Premises
Contractors & Building Trade working for contractors
- Once you have obtained your Unique Tax Reference call HMRC to register as a subcontractor
- CIS Reference- Update your Unique Tax Reference Number with Contractors
Employer responsibilities
The employer will change from yourself as an individual into the new limited company, therefore the new employer details need to be updated for employees
- Employment Contracts
- PAYE – your accountant should do this on your behalf by closing the old scheme and opening a new scheme
Assets
As a Sole Trader you may have accumulated assets such as vehicles, these will need to change ownership into the new limited company
- Vehicle V5 ownership change
- HP or Loan agreements
Suppliers
You will need to send an email to all suppliers with our new details so that they pay into your new limited company bank account
- Update suppliers with your new details
HMRC – Your employment status will change when you go from a Sole Trader to a Limited Company, your accountant will update your information on your Tax return.
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