What year end accounts are
Every limited company has to prepare annual accounts, often called statutory accounts, at the end of each financial year. They include a profit and loss account, a balance sheet showing what the company owns and owes, and notes that explain certain figures. A copy goes to Companies House, where it becomes public, and the same accounts go to HMRC with the company tax return.
Most small companies fall into the micro entity or small company categories. These allow simpler accounts with fewer notes. We check which category your company fits each year, because a growing business can move up a size without anyone noticing.
Plenty of directors only think about year end accounts in Watford when a reminder lands from Companies House. By then the deadline can be weeks away. Starting soon after the year end gives time to sort out queries properly and plan the tax bill, rather than rushing both.
Deadlines for limited company accounts
The dates depend on your company's year end, but the rules are the same for everyone.
We put each of these dates in our diary when you join, and send reminders well ahead of them. Companies House can also send its own email reminders if you sign up for them, which is a useful backup.
- Accounts to Companies House within 9 months of the year end
- A first set of accounts within 21 months of incorporation
- Corporation tax paid 9 months and 1 day after the year end
- The company tax return, form CT600, within 12 months of the year end
- A confirmation statement at least once every 12 months
What is included
- Statutory accounts in the right format for your company size
- Filing with Companies House
- Company tax return prepared and filed with HMRC
- Year end adjustments, depreciation and accruals
- Director's loan account review
- Dividend and reserves check
- Confirmation statement filing
- Dormant company accounts
- Changing your accounting reference date
How we prepare your year end accounts in Watford
We start by reviewing your bookkeeping for the year. Bank accounts are reconciled to the statements, sales and costs are checked for gaps, and items that have been put in the wrong place are moved. Then come the year end adjustments, such as depreciation on equipment, which spreads its cost over its useful life, and accruals for bills that relate to the year but arrived later.
Next we draft the accounts and send you a short list of questions. Typical ones ask about a large purchase, money paid to or from a director, or stock left at the year end. Once you are happy, you approve the accounts and we file them with Companies House. The company tax return is filed with HMRC alongside them, with the accounts tagged in a format called iXBRL, which lets HMRC's systems read them.
Clients send their records online and most never need to visit. For those who would rather go through the draft of their year end accounts in Watford in person, we can arrange a meeting at our office on St Albans Road.
Director loans, dividends and other year end checks
The director's loan account records money moving between you and the company outside of salary and dividends. If it shows that you owe the company money, and that is not repaid within 9 months of the year end, the company faces a temporary tax charge on the amount outstanding. We flag this before the deadline, so you have time to act.
We also check that dividends paid during the year were covered by profits available for distribution. A dividend paid without enough retained profit can cause problems for the director later. Small companies can usually skip an audit too. For financial years starting on or after 6/4/2025, a company generally qualifies if it meets two of three limits: turnover of £15 million or less, assets of £7.5 million or less, and 50 or fewer employees. Some types of company must always be audited.
Late, dormant or changing year end
Companies House charges an automatic penalty when accounts are late, and it doubles if they are late two years running. Not filing at all is a criminal offence, and Companies House can take steps to strike the company off the register. If you are already late, we prioritise getting the filing done before anything else.
A dormant company that has not traded still has to file accounts and a confirmation statement. You can also shorten or extend your company's financial year. Extending is limited to once every 5 years, with some exceptions. Some owners move their year end to fit a quieter season, which can make the whole process easier.
Local companies we prepare accounts for
Our year end accounts work in Watford covers all kinds of small companies, from consultants working in the offices around Clarendon Road to trade businesses in Hemel Hempstead and freelance crews based near the studios in Borehamwood. We also look after companies further out in Hertfordshire and in Stanmore.
Whatever the trade, the aim is the same. Accurate limited company accounts, filed on time, with no surprises in the tax bill that follows.
Who this suits
- Owner managed limited companies with one or two directors
- Contractors and consultants trading through a company
- Dormant companies that still need to file
- Directors who have received a late filing reminder
- Companies switching from another accountant
- First time directors filing their first accounts
Common questions
When are my limited company accounts due?
Normally within 9 months of your company's year end. A company's first accounts are due 21 months after incorporation. Your company tax return has a separate deadline 12 months after the year end.
Do I have to file accounts if my company has not traded?
Yes. A dormant company still has to file accounts and a confirmation statement with Companies House. Dormant accounts are simpler, but they are still required.
What is the penalty for filing late at Companies House?
Companies House charges an automatic penalty, which rises the later the accounts are, and doubles if you are late two years in a row. It is separate from any HMRC penalty for a late tax return.
Does my small company need an audit?
Most small companies do not. If your company meets two of the three size limits it is normally exempt, although some types of business and companies whose shareholders request it must still be audited.
Can I change my company's year end?
Yes. You can shorten it as often as you like, but extending is normally allowed only once every 5 years. We can tell you whether a change would help with timing or tax.
How long does it take to prepare my year end accounts?
That mostly depends on the state of your bookkeeping. Clean, reconciled records can be turned around much faster than a year of missing receipts. We agree a timetable well ahead of your deadline.
I took more money out than I should have. What happens now?
If your director's loan account is overdrawn at the year end, repaying it within 9 months avoids the temporary tax charge. We look at options such as declaring a dividend or paying a bonus, if profits allow.