You must file your limited company's yearly accounts with Companies and HMRC regardless of whether your limited business is trading, non-trading, or dormant.
A limited company's annual accounts are sometimes known as company accounts, financial accounts, or statutory accounts. Small enterprises and'micro-entities,' such as sole proprietorships, can have a reduced set of accounts prepared for Companies , which includes a balance sheet and notes.
Companies and HMRC have distinct deadlines for completing limited company annual accounts, although you may be able to file both at the same time. Here's some information about the annual account deadlines for an active limited company.
Companies annual account filing deadlines
You must file annual statutory accounts with Companies as a limited company director. According to the Companies Act, these must comprise a glimpse of summarised financial information.
When you first set up and incorporate your limited business, a date for the company's 'end of financial year' will be assigned to you automatically. This is the last day of the month in which you formed your limited corporation. It provides a guideline for when you must file your accounts each year.
As an example:
On October 13, 2018, Company A is formed. As a result, its Accounting Reference Date and fiscal year end will be October 31st.
Company A must file accounts for the fiscal year beginning October 13, 2018 and ending October 31, 2019. Subsequent yearly accounts will be filed for the months of November 1st to October 31st (12 months).
You must file these accounts within 21 months after your incorporation date for the first year. In the preceding scenario, Company A must file its annual reports by July 12th, 2020.
You must file your annual accounts within nine months of your Accounting Reference Date after the first year. For example, Company A must file its annual reports for the fiscal year 2020 no later than 31st July 2021 for the period 1st November 2019 - 31st October 2020.
If this sounds complicated, don't worry: your accountant will help you keep track of these dates and will handle much of the administration for you, such as compiling and filing your yearly accounts with Companies (and HMRC).
Some high street accountants may charge hundreds of pounds to submit your limited business annual accounts, so look around for an accountant who can give a more personalised service, especially if you also need payroll, accounting, VAT returns, and Personal Tax Returns.
HMRC filing deadlines for annual accounts
You must file a Company Tax Return and pay Corporation Tax to HMRC each year. The Company Tax Return (CT600) is due 12 months after the end of your accounting period (see the above example). All key financial dates for your limited business will be recorded by your accountant, but you can access this information yourself for reference.
You must pay Corporation Tax nine months and one day after the end of your accounting period. Company A in the above example must pay Corporation Tax by August 1st of each year (nine months and one day after 31st October).
As part of the Company Tax Return process, small and micro-entities must still submit full yearly accounts to HMRC.
A good contractor accountant will be able to submit your Company Tax Return on your behalf, calculate the amount of Corporation Tax owed, and advise you on the due date.
What information must be included in yearly reports?
As previously stated, tiny businesses and micro-entities can file abridged accounts with Companies . Your accountant will, however, nevertheless generate full statutory accounts for your records and the CT600.
The following items will be included in the full annual accounts:
Profit and loss statement - a statement that shows sales, costs, and profit or loss for the fiscal year in question.
Your company's balance sheet shows the value of its assets and liabilities.
Comments
Report of the Director
Report of the Auditor (depending on the size of your company)
The director's name and signature
Contractors with small limited companies ('micro-entities') are unlikely to be required to complete a full set of yearly accounts for Companies , but this is required for a Company Tax Return to HMRC. Your accountant will assist you in completing and filing this form.
What exactly is a micro-entity?
A micro-entity is a type of tiny business that is commonly used by limited company contractors. A corporation is considered a'micro-entity' if and only if the following conditions are met:
Its annual revenue is no more than £632,000.
It has no more than ten staff.
The balance sheet is worth no more than £316,000.
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