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Accounting requirements for a limited company

It is vitally important that you keep up to date with all the accounting requirements for limited companies. Below we take a look at what these are and how we can help you with them.

Annual accounts

You’ll need to prepare your annual or statutory accounts at the end of your [ limited company’s ] financial year.

Your accounts must be sent to the following entities:

  • Shareholders
  • Attendees of your general meetings
  • HM Revenue & Customs (HMRC) (with your Company Tax Return)
  • Companies House

Your statutory accounts must include:

  • A balance sheet
  • Profit and loss account
  • Account notes
  • Director’s report

If you subscribe to our ongoing monthly services, we’ll prepare all of these accounts for you. This is a time-saver for many contractors, because it reduces the hassle and stress of financial admin.

Your annual accounts need to meet these standards:

  • International Financial Reporting Standards
  • UK Generally Accepted Accounting Practices

Audit exemption

To qualify for an audit exemption, your company needs to be classified as “small”. See the guidance by companies House here .

A small company has:

  • A turnover of less than £6.5 million
  • Less than £3.26 million on its balance sheet
  • Fewer than 50 employees

To see if your business qualifies as a small company, you can speak to one of our consultants on 0808 141 2341 (free phone within the UK).

Small companies

If your company is classified as ‘small,’ you’ll be able to:

  • Send abbreviated (shorter) accounts to Companies House; this means that less info about your company will be available to the public
  • Use the small company exemption, so your accounts won’t need to be audited
  • Choose to not file a copy of your company director’s report

A small company’s tax return includes:

  • Form CT600
  • Your Corporation Tax calculations
  • Your statutory accounts

If you’d like to know what to include in your Company Tax Return, give us a call on 0808 141 2341 (free phone within the UK).

If you incurred a trading loss

One of the good things about a trading loss is that it reduces your Corporation Tax bill.

This means that if you’ve made losses that you can’t claim back in one tax return (simply because they’re too big), you can either:

  • Claim the loss against last year’s profit, or
  • Claim the loss in the next financial year

If you want to claim the loss against your previous year’s profit, you can either:

  • Fill in the box on your Company Tax Return, or
  • Write to your HMRC Corporation Tax office

Repayments

You’ll need to tell HMRC how to make repayments when you submit your Company Tax Return.

Filing your accounts and Company Tax Return

If your Company Tax Return and accounts cover the same period, you can send them to HMRC and Companies House along with your:

HMRC online Corporation Tax account details

  • Company registration number
  • Companies House online account details
  • Statutory accounts

VAT-registered businesses

Businesses that are registered for VAT must prepare periodical (typically quarterly) VAT returns which need to be submitted to HMRC. Any payment of VAT due must be made within a specific time-frame as well.

 

Other legal requirements for limited companies

 

If you have any questions that we have not covered above, speak to one of our expert consultants today and they’ll help you out.

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