How to Change Your Company Name

Changing your company name is relatively simple in the UK but there are some strict guidelines. This guide will give you 3 easy ways to change it.

There are numerous reasons why you might want to change the name of your company. It’s not an uncommon thing to happen, even large corporations such as Google (Backrub) and Pepsi Cola (Brad’s Drink) used to be called something different.

5 Common Reasons to Change a Company Name

Your current name may not say everything you want to about your business.
You might want something easier to remember for your customers now that your company is starting to grow.
Your company name may be too long or too short.
It could be too closely related to a competitor.
You might even be trying to combat bad press associated with your existing name and looking to rebrand or head in a different direction.

Considerations before you change your company name

Changing your company name is relatively simple in the UK but there are some strict guidelines. The name you choose needs to comply with the normal naming rules for creating a limited company:

You can’t choose a name that is the same as an existing company on the register.
It can’t be too like another company name so that it causes confusion.
It can’t be offensive.
It can’t hint at a connection between government or local authority institutions unless that has been agreed.

Generally, you need to use ‘Limited’ in your name. The exceptions are if you are a registered charity, are a company limited by guarantee with agreement in the articles of association, or have a business name where you trade via an alternative to your registered name.

The 3 Easy Ways to Change a Company Name

You can pass a special resolution which needs to be agreed by the members of the company. These will either be guarantors or shareholders. Three quarters of the members have to agree to the change and it can either be voted on at a general meeting or through a written resolution. The split of the vote should consider the number of shares held by particular shareholders rather than just a count of interested parties.Once a vote is held, the directors are then required to send notification of the decision. A Form NMO1 needs to be completed within 15 days and submitted to Companies House.

Under certain circumstances, the directors of the company can decide to change the name of the company if they have this power set out in the articles of association. In this case, they don’t have to consult the shareholders. Again, once the decision has been made, a Form NMO1 has to be submitted to Companies House.
Our Company Secretarial team can take care of the entire procedure for you. Check out our post-incorporation services or contact our team today.

How Much Does It Cost to Change a Company Name?

The cost to change a company name is £10 or £50 if you are looking for a same day service. You swill need to submit the form along with a copy of the resolution for the change of name if this is needed.

What Happens Next?

You cannot start using the new name for your company until you have had confirmation back from Companies House. This comes in the form of a Certificate of Incorporation on Change of Name and will tell you the date when you can implement the change.

You need to keep a copy of this at your head office or SAIL address in case it needs to be inspected by relevant parties. All other aspects of your company will remain the same so you will also need to hang onto your original certificate of incorporation.

The next step is to ensure that your details match across all your current operational material and connections. Primary among these is making sure that any business accounts with your bank and financial arrangements are changed to comply with what is now on record at Companies House. For your bank, this generally involves filling in the relevant form and including a copy of the Certificate of Incorporation on Change of Name. Some may well allow you to do this online with a digital copy.

Once you have had approval from Companies House, the next step is to change all your signage, digital and hardcopy material. From the time that you have received notification of the name change from Companies House you have 14 days to do this. There’s often more work to do in this area than most people think, for instance:

You need to contact HMRC with updates to your bank account and name change details.
There will be numerous clients, suppliers and other interested parties that you will need to contact.
Any online presence including your domain name, visual material, stationary or audio advertising will have to be updated to reflect your new name.
You don’t have to change anything in the memorandum and articles of association.

While the process can happen quickly, it makes sense to have all the procedures in place once the change goes through so that you can update your relevant parties and promotional .

Do I Need an Accountant for My Small Business?

If accounting is such a significant part of managing a limited company, then hiring the right accountant for your new business is one of the most important decisions you’ll ever have to make as a business owner.

Finding the right accountant can be a minefield, especially if you don’t know who to trust and what accounting service will be the best and most appropriate fit for your new limited company.

We deal with new business founders every day as a company formations agent, so we know the struggles you face when looking for an accountant for your new limited company.

Here are 5 common mistakes that every limited company owner must try to avoid when considering the services of an accountant:

1 – Trying to manage your accounts on your own

Entrepreneurs are passionate about their business and it’s no wonder they tend to want to do everything themselves.

As a business owner, your time is valuable and your attention is best spent elsewhere, while you let somebody else take care of the financial side of things.

2 – Hiring an accountant who lacks qualifications and experience

Can the accountant explain technical financial matters with you? Can they ensure that your company complies to the necessary rules and regulations? That won’t end up with you getting your fingers burnt and costly fine in the future?

3 – Not using professional software or cloud-based technology

Many accountants swear by the efficiency and ease of Microsoft Excel. However, as good as Excel is, it is not as advanced and interactive as any good accounting software out there.

For example, it can be difficult to detect human error mistakes in Excel. Cloud-based accounting software employs a double-entry system that helps filter out such critical errors.

4 – Hiring the first accountant you meet

Finding the right accountant can be a challenge. Not only is it time consuming, but it draws you away from doing what you do best – running your business!

There are numerous accountants who are willing to provide their services. It’s important that you do the research and find the best accountant who’s the right fit for your business.

5 – Hiring the cheapest accountant you find

Another mistake business owners make when hiring an accountant is going with the cheapest option available.

While it makes perfect business sense to cut costs and save money. Scrimping on accounting services is not the way to do it. Hiring an accountant should be viewed as an investment rather than an expense.

Not only can an accountant help save you money, but they can advise you in tax, PAYE, laws etc.

To help you avoid any of these mistakes with your own limited company. We have partnered up with Cobia accounting who can provide you with professional and expert advice on your accounting needs, and all from as little as just £49 per month.

Click here to find out more

PS – Register your company here today and receive your first month’s accounting service FREE (£49 value for the Annual Returns Service – £99 value for the All Inclusive Service).

VAT for Construction Companies and Builders

Reverse Charge VAT for Construction Services

An agreement by the government in September 2019 was reached to delay reverse charge VAT for construction services by a year until October 2020.

A major change to the way VAT is collected in the building and construction sector comes into effect on 1 October 2020. The change is called the VAT domestic reverse charge (or the reverse charge) and means the customer receiving the service will have to pay the VAT due to HMRC instead of including it as part of the payment to the supplier when settling the invoice.

The main aim of the new regulation is to tackle missing trader fraud, where VAT charged to a customer is not reported and paid over to HMRC. It is hoped that this will stop fraud worth over £100 million per annum.

What Type of Building Work Requires Reverse Charge VAT

The type of work which will fall within the reverse charge includes construction, alteration, repair, extension and demolition of buildings. It also applies to works that form part of the land, like roads, railways, sewers and coastal defences. It will also cover the installation of systems for heating, ventilation, drainage and preparatory services. Services that will not be affected include architect services and the manufacture of building components, materials and plant.

The VAT reverse charges do not mean that construction subcontractors can avoid being VAT registered where they do not meet the threshold.

There is an additional responsibility to those in the construction industry to ensure they do not pay VAT to a subcontractor in circumstances where they should be reverse charging. This responsibly should be taken seriously as the financial implications of paying this VAT over to HMRC at a later date would be significant. Other responsibilities falling on the construction contractor includes needing to know whether they are dealing with the final customer. The reverse charge only applies between businesses in the construction supply chain and not to the end/final consumer.

If you are unsure about any of the changes, please speak to a tax advisor or accountant to clarify your situation.

Our preferred accounting partner is Cobia accountants. We have a special introductory offer for our clients of a free accountant callback to answer your questions. And a free month of their services, so you can try before you buy! Simply check the box when you form your company and they will contact you. Alternatively, call or email our customer support and they can arrange the callback for you:

Call us free on 0800 988 3223 or email us at info@blueskyformations.com

VAT Essentials for Construction:

Should a builder be VAT registered?

The rules regarding VAT registration remain the same as any other sector (currently £85,000 turnover per annum). You must still issue a VAT invoice stating they are subject to the reverse charge.

How much VAT should be charged for Construction Services?

VAT charge for construction services for most work on houses and flats by builders and similar trades like plumbers, plasterers and carpenters. VAT is chargeable at the standard rate of 20%.

Except if it meets certain conditions:

Zero rate VAT

building a new house or flat,
working on the homes of disabled people.

Reduced rate VAT

You may be able to charge the reduced rate of 5% for some types of construction work including:

installing energy saving products and certain work for people over 60
converting a building into a house or flats or from one residential use to another
renovating an empty house or flat

A good accountant will be able to advise you on VAT charges and the new scheme. We offer a VAT registration service when you form your company for only £30. We also have a special accountancy offer for our clients. One free month of accountancy services from our preferred partner. So you can try before you buy! Simply check the box when you form your company and they will contact you. Alternatively, call or email our customer support and they can arrange the call-back for you:

Call us free on 0800 988 3223 or email us at info@blueskyformations.com

Don’t understand Making Tax Digital?

April this year saw HMRC introduce the much talked about Making Tax Digital. Making Tax Digital (MTD) for VAT makes it mandatory for VAT registered businesses above the £85k threshold to keep records and submit VAT returns digitally through compatible software.

This doesn’t have to be overwhelming though and Blue Sky Formations have partnered with Cobia Accounting to take the stress away from you.

Cobia have partnered with Xero as their software provider who are listed by HMRC as providing software that is compatible with MTD for VAT to ensure that all MTD obligations are met and much much more!

Features of the Xero software include a VAT overview, extra reports, the ability to post VAT adjustments and submit in real time to HMRC and all of this is included when you become a client through Cobia Accounting.

You will even receive your own personal accountant to help guide you through this, in addition to supporting you through all of your accounting needs.

To find out more about the range of accounting packages Cobia can offer you contact us today at info.accounting@cobia-uk.com or call 01582 390100.