Accounts

Accounts

 

Accounts

Companies House

HMRC

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

  • Government Password

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.

Details

Deadline

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

Penalty

£150

1 to 3 months

£375

3 to 6 months

£750

More than 6 months

£1,500

 

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

Penalty

1 Day

£100

3 months

6 months

Additional £100

HMRC will estimate your Corporation Tax. They will also add another penalty of 10% of the unpaid tax

12 months

Another 10% of any unpaid tax

 

Need more details? Contact Us

We are here to assist. Complete Contact Form to see how we can work together.