Having a financial end-of-year accounts report is a legal requirement for those who own a limited company. Specific information about your financial reports must be compiled and sent off to HMRC and Companies House.
End-of-year accounts prove to HMRC that you’ve been paying the right amount of tax and also help provide them with a sufficient amount of information about your company that can be shared with the public, banks and potential investors.
Having an accountant can make life a lot easier when you own a private limited company, especially if you don’t have the time on your hands to be dealing with financial issues as well as other aspects of the business.
Read on for some of the main things to consider when completing year-end accounts.
What Information Has to Be Included in an End-of-Year Report?
An array of key information is required when you complete an end-of-year report. The information you provide has to be accurate and truthful, allowing HMRC to gather everything they need from what you report to them.
Not all aspects of the end-of-year report have to be given to HMRC, as things like Statutory Accounts have to be given to Companies House instead.
Completing an end-of-year report can be confusing, especially if it’s your first time dealing with the financial side of your business – which gives another reason to consider hiring reliable, experienced accountants from LJS Accounting Services. Let’s go through the two main reports you need to make and what they are exactly.
Also known as Annual Accounts, Statutory Accounts are certain documents that must be sent to Companies House that describe the financial activity of your business from whichever year you’re reporting on.
Both income and outgoing reports are part of Statutory Accounts and must be made as accurately as possible – something a professional accountant will be able to assist you with. The main benefit of Statutory Accounts is that HMRC and your company’s stakeholders will be able to see financial information clearly.
Company Tax Return
Sent to HMRC, a Company Tax Return is a file of documents that contains detailed information about your company’s turnover, tax allowances and all your profits from the previous 12 months. This type of tax return differs from your annual self-assessment/ personal tax return.
The point of your Company Tax Return is to calculate and confirm how much your private limited company owes in company corporation tax. With the help of an accountant, you’ll be able to estimate this prior to sending your tax return off.
Is There a Deadline for End-of-Year Reports?
There will be certain deadlines that you’ll need to keep track of. Although you only need to send your end-of-year reports to two different authorities, the timing of both could vary, so you’ll have to find out when each deadline is.
- 21 months after the registration date of your private limited company, you’ll have to send your first accounts to Companies House.
- 9 months after the end of your private limited company financial year, you’ll have to file annual accounts with Companies House.
- 9 months and one day after your accounting period comes to an end, you’ll have to pay corporation tax to HMRC.
- 12 months after the end of your accounting period, you’ll have to file your company tax return – you can do this with HMRC.
Accountancy at LJS Accounting Services
Being the sole trader or owner of a private limited company can be time-consuming, especially when you need to manage every aspect of your business.
Having an accountant with a sufficient amount of knowledge and experience is crucial for times like end-of-year reports.
Accountants can help with your financial needs by using up-to-date accounting software and techniques to assure your matters are in order, something you might not be able to do so efficiently on your own.
If you’re a limited company based in the UK, feel free to contact a member of LJS Accounting Services today for advice and guidance on being appointed an accountant.
Keli Evans, Director at LJS Accounting Services, excels in taxation and statutory accounts. With a focus on strong client relationships, she leads a diverse portfolio, overseeing vital financial aspects like VAT, payroll, pensions, and taxation with a holistic and committed approach.