What It Means to Be a Director

Becoming a director of a limited company carries more than just a job title — it comes with legal responsibilities and duties that are set out in the Companies Act 2006. Directors are entrusted with safeguarding the company, acting in its best interests, and ensuring compliance with both Companies House and HMRC requirements.

In this article, we outline the core responsibilities every UK company director must understand, from statutory duties to annual filings, and explain why professional guidance is key to staying compliant.

Legal Separation of Company and Director

A limited company is a separate legal entity from its directors. This means:

• The company owns its assets and liabilities.

• Directors are responsible for managing the company, but their personal assets are generally protected by limited liability.

• However, directors can be held personally liable if they act unlawfully, trade while insolvent, or fail to meet statutory obligations.

Statutory Duties of Directors

Under the Companies Act 2006, directors have seven key duties, including:

• Acting in good faith to promote the success of the company.

• Exercising independent judgment and avoiding conflicts of interest.

• Maintaining proper accounting records and ensuring compliance with tax law.

• Filing statutory documents with Companies House.

Failure to uphold these duties can result in disqualification, fines, or even criminal prosecution in severe cases.

Annual Accounts & Filings

Directors must ensure the company meets all filing deadlines, including:

• Annual Accounts → filed with Companies House.

• Confirmation Statement (CS01) → confirms company details.

• Company Tax Return (CT600) → filed with HMRC for Corporation Tax.

• PSC Register → keeping records of People with Significant Control.

Late filing penalties escalate quickly, and persistent failure to comply can lead to Companies House striking off the company.

Why Professional Support Matters

The legal duties of directors are extensive and carry serious consequences if ignored. At Wexley & Associates, we help directors:

• Stay on top of statutory deadlines.

• File accurate accounts and tax returns.

• Understand the boundaries between personal and company finances.

• Avoid HMRC and Companies House penalties.

With our guidance, directors gain peace of mind that their legal obligations are met while they focus on running the business.

Call-to-Action: Protect Yourself, Protect Your Company

Directors who fail to meet their duties put both their company and themselves at risk. With expert accountancy support, you can meet every obligation confidently and focus on growing your business.

👉 Contact Wexley & Associates today for tailored compliance and director support.

References

• Companies House: Director responsibilities

• Companies Act 2006 summary

• Related Wex Insider article: Limited Companies: What Every UK Director Needs to Know