Every limited company in the UK must prepare and file the company's accounts referred to as the "Statutory Accounts" annually. The statutory accounts should be filed with the Companies House and HMRC (together with the corporation tax return) annually.

What do the Company Accounts include?

The company's statutory accounts must include the following statements:

  • Statement of Financial Position (or Balance Sheet), which shows the value of assets, liabilities and equity of the company
  • Statement of Comprehensive Income (or Profit and loss account), which shows the company's income and expenses for the financial period
  • Notes to the Accounts, which provide further details on the accounts
  • Director's report

In the case of a small company, you may choose to file only the Balance Sheet and Notes to the Companies House. However, you may still need to prepare all the statements and file them to HMRC, together with the corporation tax return, unless you choose to follow the micro-company accounting standards.

What is the deadline for filing the Company Accounts?

For a private limited company, the deadline for filing the company's annual accounts is nine months from the financial year-end. In the case of the first year, it will be 21 months from the date of incorporation or 3 months from the accounting reference date, whichever is longer.

Is there a penalty for not filing Company Accounts?

Failure to deliver accounts on time is a criminal offense. In addition, the law imposes a civil penalty for late filing of accounts of the company.

The amount of penalty depends on how late the accounts are filed. The penalty amount ranges from £150 to £1,500 for late filing. Please refer to the guidance provided by the Companies House on late filing penalties for further details.

Are the Company Accounts required to be audited?

Small and micro company accounts generally are not required to be audited. However, if the company is medium or large, the company accounts are typically required to be audited.

Small Companies

 A company will qualify as "small" if it has any two of the following:

  • A turnover of £10.2 million or less
  • Total Assets of £5.1 million or less
  • The average number of employees of 50 or less

Dormant Companies

If your company is inactive, it generally qualifies as a dormant company. In technical terms, a company will qualify as dormant if there are no significant transactions.

How will we help you with your Company Accounts?

As a firm of chartered certified accountants, we provide expert service in preparing and filing statutory accounts for your company. Unlike ordinary accountants, we understand the specific accounting issues faced by the property sector, so the whole process would be hassle-free.

We have a team of chartered certified accountants, chartered accountants, chartered tax advisers, and chartered financial analysts who enable us to provide expert accounting service to you.

UK Property Accountants will help you comply with the accounting standards and the Companies Act 2006. When there are options in the accounting standards, our accountants will consider and discuss with you the best option to choose according to your business & funding needs. We will also help you write the director's reports and the strategic reports for the annual financial statements. UK Property Accountants has an expert team of qualified accountants to guide you through the changing regulatory and accounting landscape of the property sector.

We believe that the accountants' role is beyond regular compliance while preparing accounts. We understand how each accounting option will affect your overall credit rating, tax liability and strategic decision. Therefore, we ensure that your accounts reflect a true & fair view while selecting the appropriate options available under an accounting standard.

We deal with all sizes of companies, from small companies to large companies in the property sector. We have a team of chartered certified accountants who have an in-depth knowledge of various accounting standards & laws applicable to the UK companies. Some relevant accounting standards are as follows:

  • Micro entity accounting framework (FRS 105)
  • Small companies accounting framework (FRS 102- Section 1A)
  • Financial Reporting Standard (FRS 102) applicable to medium & large UK companies
  • International Financial Reporting Standards (IFRS)

Besides preparing the statutory accounts, we will:

  • Help you understand the figures in the financial statements
  • Explain to you how lenders will view the financial situation and performance of the company as reflected in the accounts
  • Explain to you how you can increase the profitability of the company, and much more

Related Articles



Share this article on