How to Change your SIC Code
Standard Industrial Classification or SIC code is essential for classifying any company. Having a SIC code is a legal requirement to run a company in the United Kingdom. At the time of opening, this code is submitted by the company’s owner along with the annual returns. The Companies House, HMRC, and Office of National Statistics have thorough information about all the businesses being run in the country.
But if you have already submitted the documents necessary for forming a company then is it possible for you to introduce any changes in it? The following guide will tell you how to do it.
The SIC Code Explained
Most people still don’t know what is the SIC code is. It’s not the most critical section of a company, but it is important to include the information properly. Most people end up typing the wrong SIC code while starting a company, but that can be changed.
Does The SIC Code Have To Be Changed?
People may change their SIC code for various reasons. These are:
Firstly, you have keyed in the wrong code while establishing the company. The code can be changed easily in case the business has multiple sections. Many of the SIC codes are very vague.
Secondly, if your business has increased then you may want new SIC codes. You can include up to four SIC codes.
Thirdly, the SIC code can also be changed if the main business has changed.
Changing The SIC Code Along With The Annual Return
It is not necessary to give any specific reasons for changing the SIC code because your annual returns enable you to change the SIC code. It is not mandatory to change the SIC code before the annual return, but many companies choose to submit the confirmation statement early.
New company owners, can find their code on the website of the Companies House. But older ones will have to find their number from an earlier list of the codes and change it to fit it in the newest code list.
The Primary Business Matters
For the fresh managing directors, what is considered as the ‘principal business’ can be slightly confusing. Ideally, whatever brings in the maximum income every year is the principle one and the rest are additional businesses and do not require mention.
What is the need for more than one SIC code?
The reasons can be many. It can be that the income is being split between different businesses. For instance, if a company has split between two different businesses the presence of separate SIC codes will be justifiable.
Many companies, now we see are subsidiaries of the mother branch. Apparently, they may be submitting their taxes separately. But they invariably come under the same mother company. This is another reason for having multiple SIC codes.
Be Relaxed About The SIC
Though SIC is a confusing topic but worrying about it is useless. A company can choose from multiple SIC codes available and more than one company can fall under the same code. SIC code isn’t vigorously forced so Companies House is not going to come after you for getting it wrong.
Talking to formations, agents might help to get right SIC code. They can tell you the business category and advise you on whether to have many code numbers or it would be better to bring all under one.