Annual Accounts and Tax Return
Every year you need to file a set of accounts at the Companies House, even if your company does not trade. It must file statutory accounts in case if your company is trading. Any tax falling due, in that case you must send a tax return to HMRC and pay Corporation tax.
You’re required to prepare your annual or statutory accounts at the end of your limited company’s financial year. Normally these relate to the 12 month period up to the last accounting reference date of the company.
To whom you must send your accounts?
Your accounts must be sent to the following entities:
- HM Revenue & Customs (HMRC) (with your Company Tax Return)
- Attendees of your general meetings
- Companies House
What needs to be included in statutory accounts?
Your statutory accounts must include:
- Balance sheet signed by a director on behalf of the board
- Profit and loss account
- Account notes
- Director’s report signed by a director or a secretary
- An auditor’s report signed by the auditors(unless the company is exempted from audit)
When do I submit them?
After signing off the accounts by the directors and a copy sent to the company’s house, you must file them with Companies House.
- Existing companies: Filing of accounts is a must and should be done within nine months of each accounting reference date.
- New companies: First set of accounts must be filed by you within 21 months of the incorporation date.
On missing the deadline, you will be prosecuted by the Companies House or need to close down your company.
Is there any fee required to be paid?
No fee payment is required for filing accounts.
What kind of standards do my accounts need to follow?
Your annual accounts are required to meet these standards:
- International Financial Reporting Standards
- UK Generally Accepted Accounting Practices
What should be done to qualify for Audit exemption?
Your company needs to be classified as “small” in order to qualify for an audit exemption.
A small company is defined to be having:
- a turnover of less than £6.5 million
- less than £3.26 million on its balance sheet
- fewer than 50 employees
For classifying your company as ‘small’, you will be able to:
- Send less information about your company to Companies House that is available to the public. In other words, send abbreviated (shorter) accounts to the Companies House.
- Use the small company exemption in order not to get your accounts audited.
- Choose of not filing a copy of your company director’s report
Annual Company Tax Return and Payment of Corporation Tax
You must send a Company Tax Return to HMRC and Corporation Tax due must be paid to HMRC.
You must file the Tax Return after the financial year end of your company.
You must pay any Corporation Tax due nine months and one day after the end of your company’s financial year.
The Corporation Tax Return consists of:
- Form CT600
- Corporation tax calculation (and supporting documents if required)
- the statutory accounts
At the time of incurring trading loss by a limited company
One of the better things about a trading loss is that it minimizes your Corporation Tax bill.
This means if you’ve incurred losses that you can’t claim back in one tax return just because they’re too big, you can either look for:
- Claiming the loss against last year’s profit, or
- Claiming the loss in the next financial year
If you wish to claim the loss as opposed to your previous year’s profit, you can either:
- Fill out in the box of your Company Tax Return or
- Write to your HMRC Corporation Tax office
You are required to inform HMRC how to make repayments at the time you submit your Company Tax Return.
Filing your accounts and Company Tax Return
If your accounts and Company Tax Return include the same period, you can send them to HMRC and Companies House along with your HMRC online Corporation Tax account details:
- Company registration number
- Companies House online account details
- Statutory accounts
Registered businesses for VAT must prepare periodically or quarterly VAT returns which are required to be submitted to HMRC. Any VAT payment due must be made within a particular time period as well.