LET TAX FIRST CONSULTANTS HANDLE YOUR STATUTORY ACCOUNTS

LET TAX FIRST CONSULTANTS HANDLE YOUR STATUTORY ACCOUNTS

MAKING YOUR ANNUAL ACCOUNTS LESS STRESSFUL

Often referred to as ‘annual accounts’ or ‘year-end accounts’, statutory accounts must be submitted by all limited companies in the UK within 9 months after the company’s year-end to Companies House.

​Statutory accounts comprise a set of financial reports showing the financial performance of the company (through a profit and loss statement) during the year and the financial position (through a balance sheet) at the end of the year.

In addition, they also highlight important information through disclosures that may be of interest to any stakeholders in the business.

We can create hand statutory accounts for companies within 50 miles of Ashford.

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WE'RE THE LOCAL EXPERTS IN ANNUAL ACCOUNTS

 

WHAT DOES A STATUTORY ACCOUNT INCLUDE?

Produced for limited companies in the UK, statutory accounts must be fully compliant with IFRS (International Financial Reporting Standards) or the UK GAAP (Generally Accepted Accounting Practice).

These will typically include the following;

  • Profit and loss statement - This would show the performance of the business over a given period of time. A summary of income received and expenses incurred are typically shown, but every business' statement will be unique. For example, a retail business with multiple stores may want to see income and expenses split by each individual store, whereas a construction business may want to see the profitability of each project it undertakes. We'll make sure each statement is tailor-made, keeping in mind the nature of the business, the level of detail required, the frequency, and the layout.
  • Balance sheet - This shows the financial position of a business at any given point in time. A balance sheet should be prepared with notes to help indicate key business ratios, such as liquidity ratios, debtor and inventory days etc. which can highlight areas of risk, so you are in a much better position to plan any cash flow needs.
  • Director's report - The Companies Act 2006 requires all larger companies to produce a director's report in their annual accounts to improve corporate transparency. It talks about the business’s principal activities, any significant events incurred during the year, and the business impact. This report outlines the overall position of the company solely depending on the financial figures. The report also depicts a company’s promising prospects for the future together with detailed information on any dividends that are to be paid to shareholders. This section is a complete overview of the year’s financial performance of a business in addition to any event that may hit the balance sheet. This report can be followed as a prospect for the coming 12 months.

Bookkeeping

TYPES OF COMPANIES

Criteria for small companies

If your business meets two or more following conditions, it will be considered as a small company:

  • You have a turnover totalling less than £10.2 million
  • You have a maximum of £5.1 million or lower on your balance sheet
  • You have 50 or less employees

As a small company, you have the freedom to send abridged accounts to the Companies House. Additionally, small companies also have the option to send a director's report, a profit and loss account as well as the opportunity to audit or not.

Criteria for micro-entities

How to understand whether a business is a micro-entity? Does your business meet two or more conditions listed below?

  • You have a turnover lower than £632,000
  • Your balance sheet shows a maximum of £316,000 or less
  • You have 10 employees or less

Being a micro-entity means it is not mandatory for you to prepare complex accounts and you can send more straightforward balance sheets to Companies House instead. The same exemptions offered to small companies are also given to micro-entities.

FILING DEADLINES

The deadlines for private limited companies (Ltd) differ to public limited companies. Both are determined by your company's accounting reference date (also known as the year-end date).

When you first form the company, this automatically sets the first anniversary as the last day of the month in which you incorporated the company. So, if you formed a company on the 15th of January 2020, then your automatic accounting reference date would become 31st of January 2021 - the first anniversary will be the last day of the month in which you formed the company.

For all private limited companies, the deadlines are:

Accounts

  • First accounts with Companies House - deadline is 21 months after the date of the company formation
  • Annual accounts with Companies House - deadline is 9 months after your company's year-end

Corporation tax

  • File company tax return (CT600) - deadline is 12 months after your accounting period
  • Pay corporation tax - deadline is 9 months and 1 day after your accounting period for corporation tax ends