Do you run a limited company in the UK? Are you properly dealing with your year-end accounts? At the end of each financial year, reporting relevant information to HMRC and Companies House is a legal requirement that ensures the company pays the right amount of tax, and to provide banks, shareholders, potential investors, and the public with accurate information about your company.
At Every Penny Accounts, we offer a wide range of professional accounting services, and we understand that dealing with year-end reporting can seem daunting and confusing. That’s why our team has come together to create this essential guide to ensuring a smooth, streamlined process. For more information on any of the topics covered in this guide, or to arrange our year-end accounting services for your limited company, get in touch with the team at Every Penny Accounts now!
What Information Do I Need?
The key aspect of year-end account reporting is sending the relevant information about your limited company’s accounting period to Companies House and HMRC. Your company tax return will go to both places while your statutory accounts go solely to Companies House. The information required for this include:
Company Tax Return: You will need to submit a form CT600 to HMRC which will contain details of expenses, tax allowances, turnover, and profit.
Statutory Accounts: Also known as annual accounts, the purpose of these documents is to describe your limited company’s financial activity over the year.
Statement of Financial Position: This highlights the overall value of to your company and is also known as a balance sheet to report assets and liabilities.
Directors Report: This is a report on the current state of the limited company made by the board of directors but is not required for micro-entities.
Correctly submitting this information does more than just inform HMRC and Companies House, as somebody who runs a limited company this information can help you understand the day-to-day operational costs of your business, as well as other key financial aspects.
Limited Company Financial Deadlines
The deadlines for submitting documents for a limited company differ from the deadlines for submitting tax documents – including self-assessment tax returns and CIS returns. A limited company’s reporting period is dependent on the date the company was registered with Companies House, but there are strict timescales to adhere to. These include:
- File annual returns with Companies House nine months after your limited company’s financial year ends.
- Deal with corporation tax with HMRC nine months and one day after your accounting period for corporation tax ends.
- File a company return with HMRC twelve months after your accounting period for corporation tax ends.
If you don’t file this information on time and to the right place, you will face penalties in the form of fees that increase the longer the correct information is not filed. This is why so many limited companies choose to work with reputable accountants like Every Penny Accounts. Contact us today to arrange your service.
Penalties for Late Filing
Failure to file the correct information on time, or failure to do so at all can result in fines that can quickly add up, especially when HMRC and Companies House issue their own separate penalties. Allow us to break these down for you.
HMRC Penalties
- One day late: £100 penalty.
- Three months late: Another £100 fine.
- Six months late: HMRC will estimate your bill for corporation tax and add a 10% penalty of the unpaid amount, which is increased by another 10% once this reaches twelve months.
- Repeated late filings: If you have failed to file on time three times in a row, the £100 penalties are increased to £500 each.
Companies House Penalties
- Up to one month late: £150 fine.
- One to three months late: £375 fine.
- Three to six months late: £750 fine.
- Over six months late: £1,500 fine.
- Repeated late filings: The penalty cost doubles in the case of Companies House. Your company can also be removed from the Companies House register if accounts and confirmation statements are not sent when due.
Skip the Stress, Contact Every Penny Accounts Now!
For a stress-free experience, choosing a reputable accountant can make all the difference. At Every Penny Accounts, we offer a wide range of accounting services, with our year-end accounts service being highly popular with limited companies across the UK. In addition to year end accounting, we also provide CIS returns, bookkeeping, payroll, and accounts services. Contact us today for more information!
