FREQUENTLY ASKED QUESTIONS (FAQ) ABOUT ACCOUNTS
What is an Account?
An Account is a record or statement of financial receipts and expenses relating to a particular period.
What work needs to be carried out before Accounts can be completed?
Bookkeeping needs to have been carried out before your Accounts can be completed.
Who requires Accounts to be filed?
Both Companies House and Her Majesty's Revenue & Customs (HMRC) require Accounts of limited companies or partnerships to be filed.
What is needed to be able to file Accounts?
To be able to file Accounts at Companies House, we need:
Companies House password,
Companies House Authentication Code and
Company Registration Number
To be able to file Accounts with HMRC, we require:
Government Gateway User ID
We will guide you on how to obtain these details.
What type of Accounts are required to be filed?
Small and medium-sized companies can file Accounts with Companies House:
Without being Audited i.e. there is no need to conduct an official financial inspection of your company and its accounts,
Which are abridged i.e. shortened (omitting certain Balance Sheet items) or
Which are filleted i.e. do not contain the director’s report, profit and loss account and notes relating to the profit and loss account.
HMRC requires Full Annual Accounts to be filed along with your company Corporation Tax Return.
What are the conditions to qualify as a Small company?
As per UK’s Companies Act 2006, a Small company is defined as having any 2 of the following:
Annual turnover of less than £10.2million
Balance Sheet total of less than £5.1million
50 Employees or less
What are the conditions to qualify as a Medium-sized company?
To be considered a Medium-sized company, you must meet at least 2 of the following conditions:
Annual turnover of less than £36million
Balance Sheet total of less than £18million
250 Employees or less
What are the deadlines for filing Accounts with Companies House?
What are the deadlines for filing Accounts with HMRC?
Accounts including your company tax return need to be filed with HMRC. The deadline is 12 months after the end of the accounting period it covers.
File First Accounts with Companies House
21 months after the date your company was registered with Companies House
File Annual Accounts with Companies House
9 months after your company’s financial year ends
What are the penalties for late filing (for private limited companies) at Companies House?
Your company can also be struck off Companies House (i.e. no longer exists) if you do not send in your accounts or Confirmation Statement.
Time after Deadline
Up to 1 month
1 to 3 months
3 to 6 months
More than 6 months
What are the penalties for late filing (for private limited companies) with HMRC?
It can be pretty costly not to file your Accounts on time. If you do not file your Accounts along with your Corporation Tax return, then you will incur the following penalties:
Time after Deadline
HMRC will estimate your Corporation Tax. They will also add another penalty of 10% of the unpaid tax
Another 10% of any unpaid tax