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Limited Company Accounts

What are limited company accounts ?

When we say year end we are referring to the 12 month period that the company uses for accounting purposes.  So basically put a limited company accounts show us the overall performance of the company in that accounting year.

After the end of year a Private limited company must prepare and submit the following:

These need filing with Companies house and HMRC respectively. These documents are also used to work out how much Corporation tax the company should pay. Limited companies must keep detailed accounts.

What is needed for company accounts?

In order to compile the company accounts you need to ensure the paperwork is in order and everything relevant has been rounded up.

The paperwork required is:

  • Income and expenditure records
  • supplier statements of account
  • Copies of bank/credit card statements
  • Records of other income received.
  • A record of company liabilities

What is included in company accounts?

The year-end accounts are broken down into sections which include:

Directors Report– a document written by the company directors outlining the company’s principal activities and performance over the period.

Profit & Loss account– shows a summary of the income and expenses over the accounting period and shows the total amount of profit or loss.

Balance sheet– details the company’s assets and liabilities as of the end of the accounting period.

Notes to the Accounts– offer an explanation on the details of both the Profit and loss account and the balance sheet.

What are the filing deadlines?

The deadline for the company tax return (CT600) is 12 months after the end of the accounting period covered. There is a separate deadline for paying the Corporation tax due (this is normally 9 months and one day after the end of the accounting period).

The annual accounts should be filed with Companies House within 9 months and one day after the end of the accounting period covered.

Download our free Key dates and deadlines guide here and keep up-to-date.

The run-up-to year end is the perfect time to think about ways to make your business more tax efficient both in the sort-term and going forward. There are many ways to achieve this with some example options being to bring a spouse into the business, transferring some income into a pension and certainly making the most of all tax-free benefits in kind for any staff.

This list is for guidance only, please contact AJR & Co Ltd for more in-depth advice and to arrange a free 30 minute consultation.