How to change your SIC code
How to Change Your SIC Code
Your SIC (Standard Industrial Classification) code is a vital part of classifying what you do as a company. When you first start up your company you will be given an SIC code that you submit along with your annual returns. HMRC, the Office for National Statistics (ONS), and Companies House
record information about businesses in the UK. It is a legal requirement to have a SIC code when you are running a company.
If you have already submitted the documents to form a company how are you meant to change this information? Our guide shows you how to do it.
What is a SIC Code?
Many people have no idea what a SIC code actually is. It is one of those fields people fill in but don’t understand. It is not a critical part of your company, but you still need to get it right.
One of the mistakes you have to avoid when forming a new company online is to type the wrong SIC code in. Luckily, in that event you do have the option to change it.
Why Would You Ever Need to Change Your SIC Code?
There are a number of reasons why you may need to change your SIC code. The main reasons are:
Amend Your SIC Code with Your Annual Return
- You entered the wrong SIC code when you set up your company. This is easy to do if your business carries out multiple types of work.
- Your business has expanded and you have to add new SIC codes into your company. You can have up to four industrial SIC codes.
- Your principal business activity has changed.
You do not need to give a reason why you wish to change your SIC code. Your annual return allows for you to change your SIC code for any reason at all. There is no requirement in lwa for you to change your SIC code before you submit your annual return. Some companies do choose to submit an early confirmation statement for this purpose.
If you have opened a new company, you will be able to find your SIC code on the Companies House website. Older companies need to look back at an earlier version of the SIC codes from Companies House. In this case you will have to change your code so it is aligned with the newest list of codes.
Only Your Main Business Matters
One area that is confusing to many new managing directors is what is their ‘principal business’. The best way to look at it is to think about what brings you the most income in every single. Anything else is really just a side business and does not need to be mentioned.
Why would a company have multiple SIC codes?
There are a number o reasons this could be the case. One reason is that your income is relatively evenly split between a range of different types of activity. For example, a 70:30 split between two different businesses would be enough to justify using two SIC codes.
You also may decide to have multiple brand names. A lot of companies you see today are subsidiaries of a main company. They may submit their taxes separately, but they ultimately fall under the same umbrella. This justifies having more than one SIC code.
Don’t Worry About It
This can be a confusing subject, but there’s no need to worry about whether your SIC code is absolutely the most accurate one. There are lots of SIC codes to choose from, and some companies fall under the same SIC code. But what you must remember is that Companies House are not going to hunt you down if you get it wrong.