Forming a Limited Company brings various responsibilities, especially if you are a Director of the Company (read about the Director’s duties here).
One responsibility is to file Company Accounts (also known as ‘Limited Company Accounts’, ‘Statutory Accounts’ or ‘Year End Accounts’) with Companies House.
When are Your Company Accounts Due?
You need to file accounts 9 months after your year end. Example: if your year end is 31 December, your accounts need to be filed by 30 September.
What do I need to file?
Companies House require you to file a set of Annual Accounts. Your Annual Accounts normally cover a 12 month period, but there are exceptions for if you are preparing your first set of accounts or you have changed your year end date.
Your accounts should be prepared in accordance with Accounting Standards and must include the following:
- a ‘balance sheet’ – showing the value of everything the company owns, owes and is owed on the last day of the financial year
- a ‘profit and loss account’, – showing the company’s sales, running costs and the profit / loss it has made over the financial year
- notes about the accounts
- a director’s report
What if I miss the Deadline?
There are penalties and unfortunately, whilst you can appeal against them, Companies House are not particularly lenient if you miss your filing deadline. Penalties are calculated as according to how late you are:
Up to 1 Month £150
1 to 3 months £375
3 – 6 months £750
More than 6 months £1500
Please note, if you are late 2 years in a row each of the above penalties double (so £150 becomes £300, £375 becomes £750 and so on..).
How is your Year End Date Determined?
Your year end date (formally known by Companies House as Accounting Reference Date ‘ARD’) by default will be the end of the month in which you formed your Company. So if you formed your Company on the 3 June 2016 your first year end date will be 30 June 2017, and then the 30 June every year after that.
It’s worth nothing that your first set of accounts will cover a period of more than a year because they will cover 3 June 2016 to 30 June 2017.
What Else Do I Need to File?
There are other obligations that you will need to consider:
Company Tax Return
You also need to let HMRC know how much profit or loss your Company made by filing a Company Tax Return. This form needs to be filed with HMRC 12 months after your year end, but any tax due must be paid 9 months and 1 Day after your year end.
So using our example of a Company with a Year End of 31 December, any corporation tax would need to be paid on 1 October and the tax return filed on 31 December of the following year.
A P11D needs to be submitted by your Company to HMRC showing any benefits received by Directors or Employees, who earn over £8,500 per year, or any company director who owns more than a 5% shareholding in the company. Benefits include things paid for by your Limited Company for things such as company cars, private healthcare or interest free loans for season tickets.
This document provides a snapshot of the general information about the company – the directors, shareholders and registered office amongst other things. It should be filed once a year, usually on the date that your Limited Company was formed.
A P60 is an official HMRC form that shows taxable salary that an employee has paid in a tax year by the employer and the amount of tax that was deducted from their wages. You must issue each of your employees with one of these by 31 May each year, covering the previous tax year. Learn more about the P60 here
If You are or were the Director of a Limited Company you will need to submit a Personal Tax Return to HMRC. These are due on 31 January each year. See if you need complete a Self Assessment tax return here. It’s a good idea to make a note of the deadlines. Missing them can lead to penalties, charges and interest.