In the UK, limited companies are required to prepare and file statutory accounts annually, complying with accounting standards such as FRS 102 or FRS 105 (for micro-entities). These accounts typically include a profit and loss statement, balance sheet, notes to the accounts, and, for larger companies, a directors' report. Companies must also submit a Corporation Tax Return (CT600) to HMRC, detailing taxable profits and the corresponding tax liability. Filing deadlines are strict: statutory accounts must be filed with Companies House within nine months of the financial year-end, and the tax return with HMRC within 12 months. Corporation Tax must be paid within nine months and one day after the accounting period ends. Companies are categorized into micro, small, medium, or large entities, with simplified reporting available for smaller businesses. Accurate record-keeping of all transactions and the use of accounting software are essential to meet compliance and avoid penalties, which range from £150 to £1,500 for late submissions.

Limited companies in the UK must prepare annual accounts, also known as statutory accounts, to report their financial performance. These accounts must be delivered to Companies House and HMRC.

What's included in annual accounts?

• Balance sheet: Shows the value of a company's assets, liabilities, and equity on the last day of the financial year
• Profit and loss account: Shows a company's sales, running costs, and profit or loss for the financial year
• Supporting notes: Provide additional information about the accounts
• Director's report: A report from the company's director
• Auditor's report: A report from an auditor, unless the company is exempt from audit

How to prepare annual accounts?

Gather all relevant financial data from the previous year, including:

1. Invoices
2. Receipts
3. Bank statements
4. Payroll records
5. Details of any assets or loans

Ensure that the data is complete and accurate

How to file annual accounts?

You can file your accounts and tax return with Companies House and HMRC together or separately.

Can a limited company use an accountant?

Yes, it can be beneficial to use an accountant. contact us now