When Do You Need to File Annual Accounts? A Complete Guide
All UK limited companies must file yearly accounts with Companies House, but only those with Corporation Tax must send them to HMRC. The dates for filing accounts with Companies House and HMRC vary. Companies House allows simpler accounts depending on firm size and trading status. No matter your company’s size, HMRC requires comprehensive (statutory) yearly accounts from operating companies. Companies House requires yearly statements from non-trading or defunct companies. Knowing when to send corporate accounts to Companies House is crucial. Late delivery might result in large penalties and criminal charges for directors and the company secretary. In this article, we will discuss what annual accounts are. When do you need to file annual accounts and all essential details?
What Are Annual Account?
An insight into what annual accounts are and understanding is essential before we explain the topic. When Do You Need to File Annual Accounts? Annual accounts, or financial or statutory accounts, mean complete reports made at a company’s end at the end of each financial year to describe both the financial and statutory dimension status and performance. Such accounts would normally come out with vital parts of it, with a balance sheet, profit and loss accounting and a cash flow statement showing the prediction of the financial state of affairs of this firm. A balance sheet lists the figures in assets, liabilities and equity of a balancing account at the end of the year, as well as the profit and loss account, which gives information on revenues, costs and net profit or losses in the financial period.
Such documents are of great essence to the stakeholders, i.e. company directors, shareholders and creditors, and, as such, valuable as information regarding stability of the company, performance of the company and chances of the business. Annual accounts are very important for both tax reports and decision-making, as well as for guiding a business towards sustainability. Accurate planning and documentation are important in fulfilling legal requirements and evading financial invisibility in addition to lightening the task of making business strategies and financial conditions decisions. They enable the company to pay its obligations and to be financially strong in the future.
When Do You Need To File Annual Accounts?
Here is a clear explanation of the query: When do you need to file annual accounts? All companies have an accounting reference which dictates when they must file their accounts.
- For new companies, the date is the anniversary of the final day of the month of company incorporation.
- For the existing firms, it is the anniversary of the day after the past fiscal year closed.
- The companies have 9 months after their accounting reference date to file their accounts.
Companies House and HMRC set different annual accounts filing deadlines. They are as follows:
- First for Companies House, 21 months after the date of company formation
- Later occurrences for Companies House, 9 months from the end of your company’s financial year
- Accounts for HMRC (as part of the Company Tax Return), 12 months after your accounting period for Corporation Tax finishes.
Although various filing deadlines are in effect, most companies decide to file with Companies House and HMRC at the same time. Joint filing can be completed online on HMRC’s service or using accounting software. Or you can send your accounts to the Companies House and HMRC independently. If you don’t remember your filing deadline, you can use the Find and Update Company Information service to locate your company, and on the overview screen, the due date will be available. You can also sign up for the email reminder service to get timely notifications when payments are due. It’s important to prepare yourself and know your company’s deadlines in advance. It is very important to prepare your accounts early, as this will avoid putting you under unnecessary pressure and delaying you at the last minute.
How To File Annual Account?
The most efficient and the simplest is filing one’s accounts online. To file online, you’ll need to register for online filing, have an email address, enter a password and have a code authentication from the company ready. The online service has integrated checks which guarantee all information entered is complete before submission. Once you submit, you’ll receive an email in response confirming that your accounts have been received, and another email to tell you whether your accounts have been accepted. This simplified procedure ensures accuracy and speed while filing your company’s accounts.
Who Can File Annual Accounts?
If you believe you are capable, you can manage your accounts on your own. There are a number of software tools available to assist with filing and preparation. Plenty of companies will hire a professional, like an accountant, to act on their behalf. Even if you have someone file for you, the directors must ensure that the accounts are filed on time. Regardless of your decision, maintaining accurate and structured records throughout the year will be crucial for completing your returns.
Conclusion:
At the end of the discussion on the topic of what annual accounts are and when do you need to file annual accounts, we came to understand that the preparation of annual accounts is a fundamental obligation for all firms, and it is at the centre of improvement in financial openness as well as legal enforcement. It is important to be aware of the deadlines and limits for submitting to Companies House and HMRC to avoid fines and ensure business success. It does not matter whether you file your accounts on your own or with professional help. Time and accuracy are critical to the financial health of your business and statutory compliance. With preparation ahead of time and taking advantage of tools at hand, such as online filing and reminders, you can make the process efficient and eliminate stress.
Disclaimer: All the information provided in this article on when do you need to file annual accounts, including all the texts and graphics, is general. It does not intend to disregard any of the professional advice.