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Company year end accounts
What are they?
Company year end accounts are prepared at the end of your company’s financial year end. For most companies their company year end is assigned based on the month your company was incorporated, for example if you incorporated your company on 19th March your company year-end will usually be 31st March.
What do I have to do?
Once your company year end has passed you have to prepare and send your company’s accounts, known as ‘statutory accounts’ to Companies House.
What makes up my statutory accounts?
In general, your statutory accounts contain 3 main sections:
- Profit and Loss statement – this shows your company’s trading activities for the year and lists the company’s income and expenses over the course of the year.
- Balance sheet – this lists out your company’s assets, liabilities, capital and reserves at the financial year end.
- Notes to the financial statements – These are additional notes which explain items within the financial statements.
What do I need to submit?
There are 2 accounting standards in the UK, FRS 105 and FRS 102. Your company’s accounts will be prepared under one of these standards and your accountant will be able to explain which standard is most suitable for your company.
Whichever accounting standard you use, you will be required to submit the company’s Balance Sheet and Notes to the financial statements to Companies House in one document.
How do I submit my statutory accounts?
Companies’ statutory accounts are normally submitted electronically to Companies House by your accountants. In order to submit the statutory accounts your accountant will need your ‘Companies House Authentication code’. This is a 6-character code which will have been sent to the company’s registered office when the company was set up. If you don’t have this document, it can be re-requested and usually takes 5-10 working days to arrive.
Paper copies of your company’s statutory accounts can still be filed via posting a signed copy to Companies House.
What are the deadlines?
Your company accounts must be submitted to Companies House within 9 months of your financial year end. Failure to submit your accounts to Companies House on time will result on your company being issued with a penalty notice which increases depending on how late the documents are. The current penalties are:
1 day late: £100
Up to 3 Months late: £375
3 to 6 months late: £750
6 to 12 months late: £1,500
Penalties are doubled if your accounts are late 2 years running.
Your company could also be struck off if your accounts are late.
Can I change my financial year end?
Yes, some companies choose to change their company financial year end for a number of reasons, including to align their financial year end with the calendar year end (December) or Tax year end (March).
You can lengthen your company’s financial year:
- to a maximum of 18 months, or longer if your company is in administration
- once every 5 years
You can only lengthen the financial year more often than every 5 years if:
- the company is in administration
- you’re aligning dates with a subsidiary or parent company
- you have special permission from Companies House