Year End Accounts

Limited Companies

By law all companies registered in the UK must prepare annual financial statements. These accounts must be filed with Companies House no more than 9 months after the accounting year end.

They are then available to banks, credit agencies and members of the public. In most cases small companies are able to submit filleted accounts which do not include the statement of profit and loss.

It is important that the correct accounting policies are applied, appropriate disclosures are made and that any inconsistencies or issues are identified. Up to date and well prepared company accounts help avoid unnecessary compliance issues and scrutiny from HMRC.

It also presents an opportunity to review your businesses performance for the year. In order for a business to succeed it is vital for management to be familiar with the numbers in order to adapt and make changes where necessary.

Well presented, consistent information allows you to review, plan and drive your business forward.

Sole Trades and Partnerships

While not a legal requirement, preparing accounts for your sole-trade or partnership provides allows you to evaluate performance and identify trends.

They also provide the basis for preparing your annual Self-Assessment tax return, and having comparative figures helps reduce mistakes and avoid inconsistencies year or year. All of which reduce the risk of HMRC investigation.

Charities and CICs

Like companies, charity accounts have strict reporting requirements. For charities there are different requirements depending on:

  • whether or not the charity is registered with Companies House and the Charity Commission or whether it is solely registered with the Charity Commission

  • the level of the charity’s income for the financial year

  • the value of the charity’s assets

  • whether the charity is of a size that is required to be registered as a charity with the Charity Commission

It is important that trustees are aware of their requirements so that the charity can comply with the relevant regulations.

Community Interest Companies (CIC’s) have similar reporting requirements to limited companies although there are some additional obligations, such as the submission of and annual CIC.

One key difference between CIC’s and Charities is that profits in CIC’s are taxable and an annual CT600 Corporation Tax must be submitted annually.