How to prepare and file company accounts

What do annual company accounts include?

A company's annual accounts, called statutory accounts, are prepared from its financial records at the end of its financial year. An auditor's report may also be needed, depending on the size of the company. ^[1]

The balance sheet must show the name of a director and be signed by a director. The statutory accounts must follow either International Financial Reporting Standards or UK Generally Accepted Accounting Practice.

How do I prepare company accounts?

The steps follow from those rules. This is a general outline for a company preparing its own accounts or using accounting services, not advice on a particular company.

1. Keep complete accounting records through the year, including money received and spent, assets, debts and stock.
2. After the financial year ends, prepare the statutory accounts from those records under one of the two accounting frameworks.
3. Have the directors approve the accounts, and have a director sign the balance sheet.
4. Send copies to all shareholders and to people who can go to the company's general meetings.
5. File the accounts with Companies House and include them with the Company Tax Return sent to HMRC.

Which type of accounts can a small company file?

Companies House groups companies as micro-entity, small, medium or large, based on turnover, balance sheet total and average number of employees. A company must meet at least two of the three conditions.

For accounting periods that begin on or after 6 April 2025, the thresholds are as follows.

• a micro-entity has an annual turnover of no more than £1 million, a balance sheet total of no more than £500,000 and no more than 10 employees on average
• a small company has an annual turnover of no more than £15 million, a balance sheet total of no more than £7.5 million and no more than 50 employees on average

Smaller companies may be able to file less than a full set of accounts, for example an abridged balance sheet. From 1 April 2028 small companies will no longer be able to file abridged accounts. ^[3] A company thinking of using the micro-entity or small company rules may want to consult a professional accountant.

When are company accounts due?

For a private company, the usual deadlines are:

• Companies House accounts: 9 months after the financial year ends ^[2]
• Corporation Tax payment: 9 months and 1 day after the accounting period ends
• Company Tax Return to HMRC: 12 months after the accounting period ends
• First accounts with Companies House: 21 months after the date of registration

The Corporation Tax accounting period is the time covered by the Company Tax Return and is normally the same 12 months as the financial year.

Companies House counts the deadline to the exact day and records the date acceptable accounts are received, not the day they were sent.

How do I file the accounts?

Accounts go to Companies House and the Company Tax Return goes to HMRC. A private limited company that does not need an auditor may be able to file both at the same time using suitable software. ^[4]

Most limited companies can use commercial software to file accounts, and many can also file accounts online. ^[5] From 1 April 2028, accounts can only be filed with Companies House using commercial software, in inline extensible Business Reporting Language (iXBRL) format.

An accountant or tax adviser can file for the company if given its Companies House authentication code, and a company can appoint an agent to file its Company Tax Return. ^[4]

Delivery means actual receipt at Companies House in the correct format.

A filing deadline that falls on a Sunday or Bank Holiday still applies, and the accounts still have to be filed by that date.

Accounts cannot be accepted until they meet the requirements of the Companies Act. If the balance sheet is not signed, for example, the accounts are returned for amendment, and a company that files the corrected accounts late gets a late filing penalty.

If a company files close to its deadline and the accounts are rejected, it does not get any extra time to file. ^[3]

Amended accounts must be for the same period as the original accounts. They can be sent on paper, or through filing software if it was used for the original accounts and allows corrected accounts to be submitted.

Amended accounts sent on paper must clearly say that they replace the original accounts, are now the statutory accounts and are prepared as they were at the date of the original accounts, and "amended" is written on the front.

A company can apply to Companies House to extend its accounts filing deadline if it cannot send its accounts because of an event outside its control, for example a fire destroying company records. The application must be made before the filing deadline, and a company may not be eligible if it has already extended the deadline or shortened its accounting period.

What happens if the accounts are late?

The law imposes an automatic late filing penalty. For a private company or LLP it depends on how late the accounts reach Companies House:

• £150 if not more than 1 month late
• £375 if more than 1 month but not more than 3 months late
• £750 if more than 3 months but not more than 6 months late
• £1,500 if more than 6 months late, measured from the date the accounts are due. ^[5]

The penalty is doubled if accounts are late in two successive financial years. Directors are personally responsible for delivering the accounts on time.

There can also be penalties for filing late with HMRC.

How long do I keep the accounting records?

A company must keep records for 6 years from the end of the last company financial year they relate to. The period can be longer, for example where the company has bought something it expects to last more than 6 years, like equipment or machinery, or the Company Tax Return was sent late. ^[6]

Records must be kept for longer than 6 years in some circumstances, including where the company has bought something it expects to last more than 6 years, like equipment or machinery. ^[6]

Do I need an accountant?

The rules do not require a company to use one. A company can hire a professional such as an accountant to help with tax. Many directors choose help because the accounts, the Corporation Tax computation and the filing all have to line up. A specialist can explain what applies to a particular company.