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Business management

Key guidance and support for current and future directors

The government has a dedicated director information hub.

Running a limited company: a director’s responsibilities

If you are about to start a limited company, you will need to become a director or appoint one. Every limited company must have at least one director.

There are certain criteria for a person to be a director e.g., a director must be aged 16 or above.

The hub explains that as a director, your responsibilities include:

  • Keeping company records and reporting certain changes to the company when they happen to Companies House and HMRC
  • Filing your company’s annual accounts
  • Sending a confirmation statement every year to Companies House
  • Paying Corporation Tax and VAT (if registered), PAYE and National Insurance contributions due on time

The hub can be accessed here: UK Director Information Hub.

Acting responsibly

Once you become the director of a limited company, there is plenty of support and guidance available from the government, professional bodies, and the private sector. It’s worth noting though that not all that advice is free.

As your company grows the help you will need may also change, depending on the stage the business is at.

A director of a limited company has significant responsibilities at all those stages and it’s important to understand and follow the relevant rules in the Companies Act 2006.

The consequences of not operating responsibly can involve legal action and fines.  If you fail to meet your legal responsibilities as a director, you could be disqualified.

Facing insolvency

It’s especially important for directors to know how to act and what their responsibilities are, in the event of potential or actual insolvency.

If you are a director and your company becomes insolvent, you still have duties and responsibilities. Examples of the kind of advice available on the information hub include: 

  • Responsibilities for directors of insolvent companies
  • How to recognise early warning signs of financial distress and what steps could be taken to reduce the risk of insolvency
  • How and when a director could be personally liable for company debts

 

Donna Smith, NatWest Group Director – Restructuring, has been working with the team responsible for the hub, along with other stakeholders, to help deliver a single online hub to host clear and concise guidance for directors, with signposts to more detailed guidance and support where needed.

Donna says: “Directors have legal responsibilities, so it’s really important that all directors understand what they are and how they can change throughout a business’s lifecycle. Getting the right information and advice is crucial, particularly in times of stress.

"The hub is an essential tool for directors of today & tomorrow to set themselves up for success and to keep them succeeding.”

Check out our article on incorporation to see if it is right for your business and to see how Royal Bank could help your business grow visit our Entrepreneur Hub or visit the LEP Network to see how your local Growth Hub could help.

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This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of NatWest Group, as of this date and are subject to change without notice. Copyright © NatWest Group. All rights reserved.

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