A business prepares its own company accounts at the end of each financial year. Company accounts are documents that include information on the performance of the business during the entire financial year. In it, one can also find information on the business’ financial position at the end of the financial year. Filing this document must be done religiously as it is important. Should the business not file this document, it may incur late filing penalties.
Who needs to file company accounts?
All businesses that are in the UK must file company accounts. It can be done online through the HM Revenue and Customs (HMRC) website. This document must be filed along with the Company Tax Return (which is known as the CT600) and all computations for Corporation Tax (which is a business’ tax calculations).
Doing this is not going to be an easy thing for individuals who may not really have had any experience doing it previously. However, with a proper guide, one can successfully complete the task.
Filing online is one way. Another way would be by sending the documents in to Companies House via mail. It is important to understand that filing online is not compulsory so far. Joint filing is also a feature that is offered as an option on HMRC’s website.
Small businesses and companies also have the option to file their company accounts which may be micro-entities or abbreviated. This should mean that such documents are shorter or simpler.
What must be included in company accounts?
Specific information are being asked when filing company accounts. The usual pieces of information include profit and loss (which is basically a statement of the business’ income); its balance sheet (a business’ financial position statement); notes; as well as the company director’s report.
When is the deadline for filing?
Yes, there is a deadline when it comes to filing company accounts. Those that file late have to deal with penalties. To avoid this, submitting all the complete documents on or before the deadline is a must. The following are details to keep in mind with regards to filing company accounts:
- The deadline for companies filing company accounts for the first time is 21 months after its registration date with Companies House.
- All other companies’ deadline is nine months after the end of a company’s financial year.
- Companies that need to inform HMRC that it has no taxes should be done after nine months and a day of its accounting timetable for Corporation Tax.
- The deadline for filing the Company Tax Return must be completed within a year after the end of its accounting timetable for Corporation Tax.
What do companies face should they file their company accounts late?
Companies will get an automatic fine if they file company accounts late. The fine goes higher the longer the documents are filed. In case a company files them two years late, the fine is doubled. Public limited companies have a higher rate as compared to private limited companies. Companies House has a guide that should help companies know the penalties should they file late.
Religious filing of company accounts is a must as these are important documents. They should comply or they have to deal with penalties. Company Address offers company formation services like this to help businesses get started.
published under Tax and Legislation Guides
