Company Accounts and Tax Returns for UK Limited Companies

Running a UK small business comes with important legal responsibilities, especially when it comes to company accounts and tax returns. Understanding these requirements—and knowing when to seek professional accounting services in UK—can help you stay compliant and avoid costly penalties. This guide breaks down what you need to know about preparing and filing accounts and tax returns for UK limited companies.

Company Accounts: Key Requirements for UK Limited Companies

Every UK limited company must prepare statutory accounts at the end of each financial year. These accounts provide a clear financial picture and are filed with Companies House.

What Your Annual Accounts Should Include:

• Profit and loss account: Details your company’s income and expenses 
• Balance sheet: Shows assets, liabilities, and equity 
• Directors’ report: Overview of the company’s performance 
• Notes to the accounts: Additional information explaining figures 
• Auditor’s report: Required unless exempt 

Small Company Accounts

If your business qualifies as a small company (meeting at least two of these conditions for accounting periods starting 6 April 2025 or later):

• Turnover of £15 million or less 
• Balance sheet total of £7.5 million or less 
• 50 employees or fewer 

You can file simplified accounts with fewer details and no audit requirement, making compliance easier.

Dormant Companies

Even inactive companies must file dormant accounts annually.

Deadlines to Remember

• First accounts: within 21 months of company registration 
• Annual accounts thereafter: within 9 months after your financial year ends 

Consequences of Late Filing

• Late submissions result in automatic penalties that increase the longer you delay 
• Directors may face personal liability and prosecution under the Companies Act 2006
   

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Tax Returns and Corporation Tax: What You Need to Do

Your limited company’s tax returns and Corporation Tax payments are just as crucial as your company accounts.

Corporation Tax Registration

• Register within 3 months of starting business activities or trading 

Filing the Company Tax Return (CT600)

• Must be filed with HMRC within 12 months after the end of your accounting period 

Paying Corporation Tax

• Payment is due 9 months and 1 day after the end of your accounting period 

Alignment with Accounting Period

• Usually matches your company’s financial year, simplifying filing deadlines 

Other Essential Filing Obligations

Beyond accounts and tax returns, here are other filings UK limited companies must manage:

• Confirmation Statement: File annually with Companies House, due within 14 days of your company’s incorporation anniversary or last statement 
• VAT Registration: Required if your turnover exceeds £90,000 
• PAYE Registration: Needed if your company employs staff 
• Self Assessment Tax Returns: Directors and shareholders may need to file for dividends or other personal income 

Penalties for Late Filing: What You Should Know

Filing your accounts late triggers automatic penalties that grow with the length of delay:

• Up to 1 month late: £150 penalty 
• More than 1 month up to 3 months late: £375 penalty 
• More than 3 months up to 6 months late: £750 penalty 
• More than 6 months late: £1,500 penalty 

Additional points:

• Penalties double if you file late two years in a row 
• Public companies face significantly higher penalties 
• Late filing is a criminal offence, with potential fines and director disqualification 
• Persistent late filing risks reputational damage and legal enforcement actions 

Appeals

If you face exceptional circumstances such as illness or technical problems, you can appeal these penalties.

How Accounting Services Can Help Your UK Small Business

Managing all these deadlines and requirements can be overwhelming for many UK small businesses. Professional accounting services in UK offer expert support by:

• Preparing and filing accurate company accounts and tax returns on time 
• Registering your company for Corporation Tax, VAT, and PAYE as needed 
• Advising on compliance and helping avoid penalties 
• Allowing you to focus on running and growing your business with peace of mind 

Summary

For UK small businesses operating as limited companies, meeting statutory requirements for company accounts and tax returns is essential to avoid penalties and legal issues. This includes preparing and filing accurate annual accounts, registering and filing Corporation Tax returns on time, and managing other obligations such as VAT, PAYE, and confirmation statements. Late filings can result in escalating fines and personal liability for directors, making it crucial to stay organised and compliant. Utilising professional accounting services in UK ensures your filings are accurate and timely, so you can concentrate on growing your business confidently.

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