More than just the numbers

Our expert accountants can guide you through your year end accounts to make sure you have everything prepared that requires submission through a Corporation Tax Return (CT600) to HMRC. You can also use our handy year-end accounts checklist for limited companies for further assistance.

What does a company year end entail?

Year End is the date when your company's accounting period finally ends. This is the date when the countdown begins for a limited company to submit the required set of documents to HMRC and Companies House.

This is a brief summary of the necessary steps for your year-end accounts. When submitting your limited company accounts, you need a reliable accountant to deal with the requirements, or you can carefully review the comprehensive guidelines on the gov.uk website.

Important dates for submitting company accounts and tax returns

Following the conclusion of the financial year, the government mandates that your limited company must prepare:

• Complete ('statutory') annual accounts
• Filing a Company Tax Return Ensure your accounts and tax return are submitted by the deadlines set by Companies House and HM Revenue and Customs (HMRC).

The accounting period for Corporation Tax aligns with the time covered by your Company Tax Return. Typically, it aligns with the company's financial year as stated in your annual accounts.

Frequently asked questions about Year end accounts

What Are Statutory Accounts?

Statutory accounts, also known as financial statements or annual accounts, are comprehensive financial reports that companies are legally required to prepare and file annually. These accounts provide a detailed overview of a company's financial performance, position, and cash flows. They typically include the balance sheet, profit and loss statement, and cash flow statement, providing stakeholders, including shareholders and regulatory bodies, with a transparent and accurate representation of the company's financial health and activities.

Different types of statutory accounts?

There are several types of statutory accounts designed to meet the reporting requirements of different types of entities. Common types include:

Full Statutory Accounts:

Prepared by larger companies, providing a detailed overview of financial position, performance, and cash flows.
Abbreviated Statutory Accounts:

Smaller companies may prepare abbreviated versions with reduced disclosures, meeting legal requirements while simplifying reporting.
Micro-Entity Accounts:

The smallest entities may prepare micro-entity accounts, offering further simplification and reduced reporting requirements.
Each type aims to balance compliance with legal obligations while catering to the size and complexity of the reporting entity.

What is a small company?

A small company, as defined by company law, typically meets two or more of the following criteria:

Annual turnover of not more than £10.2 million.

Balance sheet total of not more than £5.1 million.

Not more than 50 employees on average.

Small companies may benefit from reduced reporting requirements, such as preparing abbreviated or micro-entity accounts, offering a streamlined approach to meet statutory obligations while considering their size and scale.

What are micro entities?

Micro-entities are the smallest category of companies, as defined by company law. To qualify as a micro-entity, a company must meet two or more of the following criteria:

Annual turnover not exceeding £632,000.

Balance sheet total not exceeding £316,000.

Average number of employees not exceeding 10.

Micro-entities benefit from simplified reporting requirements, allowing them to prepare abbreviated financial statements with minimal disclosures, providing a streamlined approach to meeting statutory obligations while considering their small size and scale.

What are the HMRC's late filing penalties?

Late filing penalties issued by HMRC for statutory accounts vary based on the length of the delay. As per the latest guidelines:

Up to 1 month late: a fixed penalty of £150.
1 to 3 months late: an additional penalty of £150.
More than 3 months late: The penalties increase based on the company's status, ranging from £375 to £1,500.
Continuous delays can lead to escalating penalties, and persistent non-compliance may result in legal action and additional financial consequences. It's essential to meet filing deadlines to avoid these penalties and maintain regulatory compliance.

What are late filing penalties issued by Companies House?

Late filing penalties issued by Companies House for statutory accounts depend on the duration of the delay. As per current regulations:

Up to 1 month late: no penalty.

1 to 3 months late: A fixed penalty ranging from £150 to £375, depending on the company's status.

More than 3 months late: The penalties increase, ranging from £375 to £1,500.

Persistent delays can lead to higher penalties, and failure to comply may result in legal action and the company being struck off the register. Timely filing is crucial to avoid financial repercussions and maintain good standing with regulatory authorities.