At the end of the financial year, businesses have to prepare its company accounts, detailing the company’s performance and financial position. Filing company accounts is important and should be done religiously. If a business does not do that, there are accounts late filing penalties.
Company accounts: Who needs to file these?
All companies in the United Kingdom are required to file their company accounts. They can do it online via the website of HM Revenue and Customs (HMRC). All company accounts should be sent in along with the business’ Company Tax Return (also known as CT600) as well as the computations for Corporation Tax (which are the tax calculations of the company). Filing company accounts is not an easy affair for someone new to the task but it should be quite easy with the proper guide.
Aside from sending in the documents via HMRC, they should also be sent to Companies House. This can also be done online or via mail. Filing company accounts online is not compulsory as of present. Those who wish to do things in one go can do so as joint filing is offered as an option on the HMRC website.. Small or micro companies are given the option to file company accounts that are abbreviated or are micro entities. This means that the documents are going to be simpler accounts or shorter accounts.
What information should be included in company accounts?
Filing company accounts needs specific information. It should include the account on profit and loss (which is also a statement of income of the business); a balance sheet (which is a financial position statement); notes; and a report from the company director. What is the deadline? There is a deadline to filing company accounts. There are accounts late filing penalties that companies can avoid if they submit the needed documents on or before the given timeframe. Here are some important details regarding the deadline for filing these documents: • If it is a company’s first time filing company accounts with Companies House, the deadline is 21 months after the registration date with Companies House. • Filing annual accounts and submitting them to Companies House should be done nine months after the end of the financial year of a company. • Paying Corporation Tax or informing HMRC that a limited company has no taxes owed should be done nine months and a day after the end of the company’s accounting timetable for Corporation Tax. • Filing a Company Tax Return should be done a year after the end of the accounting timetable for Corporation Tax.
What happens when company accounts are filed late?
Late filing of accounts will mean that the company gets an automatic fine. The longer the documents are filed, the higher the fine goes. If a company files the documents late for two years, the fine doubles. Limited companies that are public get higher rate compared to private companies. Companies House as a guide on the penalties for late filing.
If you are unsure about how to file your accounts or you need additional help - you can either visit HRMC’s and Companies House website or you can outsource it to an accountant who will ensure it gets done correctly and on time so as to avoid paying late penalties.
published under Business Address Guides
