Though it is essential, it is an often misunderstood piece of information. SIC codes are used by bodies like Companies House to provide a summary of a business’s activities. As an entrepreneur, it is important to know the significance of SIC code prior to filing your Annual Return. Therefore, what are SIC codes, where can you find it and when will you need one?
SIC codes are a system for defining and categorising activities of a business. They are the consequence of an ongoing effort to create a comprehensive list of all business types that exist in the UK. The SIC codes are classified into trade groups. Full classifications are provided in every trade group. For instance, trade group I consists of Communication, Storage and Transport businesses. Within that group, codes are allocated to businesses based on the product/service rendered. Consequently, code 6210, which is within trade group I, consists of companies that are involved in scheduling air transport. Code 8041 in trade group M refers to companies that perform driving school activities.
When do I need SIC codes?
Having a SIC code for your business might be news to you, since it is not a piece of information with which many entrepreneurs have to deal regularly. However, SIC codes possess some significant applications and uses, most of which arises in the course of the Annual Return filing process.
The SIC code will be needed, should your business be required to file an Annual Return with Companies House. The code has to be entered so as to complete the filing process.
How do I get my business SIC code?
The majority of entrepreneurs do not know their SIC code. To get yours, you can make use of the Companies House list. This list is classified into trade groups, which is searchable both by trade description and code. Furthermore, it might take some searching to locate the most relevant code for your business; especially should your work be in a somewhat incomprehensible field.
SIC 2007 versus SIC 2003
The SIC code system was modified in January 2008. The reason is to create a comprehensive list of businesses and consequently, the list is continuously growing. Every Annual Returns having a made up date on/after October 1, 2011 need the 2007 version of the code, instead of the 2003 version.
The most observable distinction is that the 2003 codes have four digits, while the 2007 codes have five digits. In case you already know the important 2003 SIC code, you can utilise the conversion table on the Companies House site to assist you find the 2007 version. The 2007 version should be used when completing your Annual Return.