End of Year Accounts Filing Guide for Limited Companies

Year end can sneak up fast when running a limited company, and the admin pile can feel bigger than it needs to be. Year-end accounts are simply the financial summary of the past 12 months, and they are a legal requirement for Companies House and HMRC.

Getting them right helps avoid penalties, keeps the company in good standing, and makes it easier to see how the business actually performed. Use the guide below to understand what needs to be prepared, when it is due, and how to get it filed correctly with less stress.

What Are Year-End Accounts?

Year-end accounts are the all-inclusive financial statements that every limited company must prepare at the end of its accounting period. Think of them as your business's annual financial health check-up, documenting everything from profit and loss to assets and liabilities.

These accounts serve multiple purposes. First, they're a legal requirement; Companies House and HMRC need to see what your company has been up to financially. Second, they provide valuable insights into your business performance, helping you make informed decisions about future growth and investment. And third, they're often required by banks, investors, and potential business partners who want to understand your company's financial position.

Your accounting period typically runs for 12 months, though your first set of accounts can cover anywhere from 6 to 18 months. Most companies align their year-end with the tax year (31st March) or calendar year (31st December), but you can choose any date that suits your business cycle. Once set, you'll need a good reason to change it, so choose wisely.

The accounts you prepare will vary depending on your company's size. Micro-entities and small companies can file simplified accounts, whilst larger companies need to provide more detailed information. Most limited companies fall into the small company category, which means you can take advantage of certain exemptions and simplified reporting requirements.

Key Components Of Limited Company Accounts

Statutory Accounts

Statutory accounts are the official financial statements you must file with Companies House. These aren't just random numbers thrown together; they follow specific formats and standards set out in UK accounting regulations. For most small companies, statutory accounts include a balance sheet showing your assets and liabilities at year end, and accompanying notes that explain the numbers in more detail.

The balance sheet is essentially a snapshot of your company's financial position on a specific date. It shows what you own (assets like cash, equipment, and money owed to you), what you owe (liabilities like loans and unpaid bills), and the difference between the two (shareholders' equity). Even if your company has been dormant, you'll still need to prepare and file these accounts, though they'll be considerably simpler.

You might also need to include a profit and loss account, though small companies can often choose not to file this with Companies House. But you'll still need to prepare one for your own records and for HMRC. Directors also need to approve the accounts and include a statement confirming they're taking advantage of any small company exemptions.

Company Tax Return

Whilst statutory accounts go to Companies House, your company tax return (CT600) heads to HMRC. This is where you calculate and report your corporation tax liability based on your company's profits for the accounting period. The tax return uses information from your accounts but presents it in a format that HMRC requires for tax purposes.

Your CT600 includes detailed calculations of your taxable profits, which might differ from your accounting profits due to various adjustments. You'll need to add back certain expenses that aren't allowable for tax purposes (like client entertainment) and claim capital allowances on qualifying assets. Getting these calculations right is essential; mistakes can lead to overpaying tax or, worse, underpaying and facing penalties.

Along with the CT600, you'll need to submit full accounts to HMRC, including a detailed profit and loss account and balance sheet. These are often more all-inclusive than what you file with Companies House, as HMRC needs the complete picture to verify your tax calculations.

Filing Deadlines And Requirements

Companies House Deadlines

Missing your Companies House deadline is one of the easiest ways to land yourself in hot water. You've got 9 months after your accounting reference date to file your accounts. So if your year-end is 31st December, your accounts must be filed by 30th September the following year. First accounts get a bit more leeway; you have 21 months from incorporation or 9 months from your accounting reference date, whichever is longer.

But here's where it gets interesting: if you want to shorten your accounting period, you need to file your accounts within the original deadline, not 9 months from your new year-end date. Many directors get caught out by this, thinking they've bought themselves extra time when they haven't.

Your accounts must be approved by the directors before filing, and if you have an accountant preparing them, they'll usually handle the actual submission through software that links directly to Companies House. The confirmation statement (formerly annual return) is separate from your accounts and has its own annual filing requirement, so don't confuse the two.

HMRC Tax Return Deadlines

HMRC gives you a bit more breathing room with 12 months from your year end to file your CT600 and pay any corporation tax due. But don't get too comfortable, the payment deadline is actually 9 months and 1 day after your accounting period ends, even though you have 12 months to file the return.

This timing difference catches many companies out. You might not have finalised your accounts by the payment deadline, but HMRC still expects you to estimate and pay what you owe. If your estimate is significantly off, you could face interest charges on any underpayment.

For companies with profits over £1.5 million, quarterly instalment payments apply, meaning you'll be paying tax before the year even ends. Smaller companies can breathe easier here, but it's worth keeping an eye on your profits if you're approaching this threshold.

Penalties For Late Filing

Let's talk about what happens when things go wrong. Companies House starts with a £150 penalty if your accounts are up to one month late. This doubles to £300 for small companies if you're between one and three months late. Push it further, and you're looking at £750 for being three to six months late, and £1,500 if you exceed six months.

But the financial penalties are just the start. Persistent late filing can lead to your company being struck off the register, effectively closing it down. You'll also damage your company's credit rating, making it harder to secure loans or trade credit in the future. And if you're a director of multiple companies, your track record follows you around.

HMRC's penalties work differently but can be equally painful. Late filing penalties start at £100 if you're up to three months late, rising to £200 after that. But the real sting comes from interest on late tax payments, currently charged at 7.75% per year. If HMRC believes you've deliberately withheld information, penalties can reach 100% of the tax due.

The frustrating thing about these penalties? They're completely avoidable with proper planning. Setting up reminders, working with an accountant well in advance, and keeping your books up to date throughout the year can save you thousands in penalties and countless hours of stress.

Preparing Your Year-End Accounts

Essential Documentation

Getting your documentation in order is half the battle won. You'll need every single bank statement for the accounting period, including any business credit cards or PayPal accounts. Don't forget about that old account you barely use; HMRC expects to see everything. Invoices, both sales and purchases, need to be organised and reconciled against your accounting records.

Payroll information is essential if you have employees (including yourself as a director). You'll need P11S, P32S, and details of all PAYE and National Insurance payments. Keep your VAT returns handy if you're registered, along with evidence of any VAT payments or refunds. Asset purchases need special attention; keep receipts for any equipment, vehicles, or property bought during the year.

Don't overlook the smaller details that often trip people up. Mileage logs for business travel, receipts for home office expenses if you're claiming use of home, and documentation for any loans to or from the company. Platforms like Accountant Connector can help guarantee you're not missing essential documents that could delay your filing or trigger an enquiry.

Financial Reconciliation

Reconciliation is where the real work happens. Every transaction in your accounts needs to match up with your bank statements. This means going through line by line, making sure that what your accounting software says matches what actually happened in your bank account. It's tedious but absolutely essential.

Start with your bank reconciliation, ensuring your accounting records match your bank statements exactly. Then move on to your sales ledger, chase up any outstanding invoices and write off any that are genuinely bad debts. Your purchase ledger needs the same treatment, making sure all supplier invoices are recorded and you know exactly what you owe.

Stock counts matter if you hold inventory. You need an accurate valuation at year-end, using a consistent methodology (usually cost or net realisable value, whichever is lower). Fixed assets need reviewing too, calculating depreciation, removing any assets you've disposed of, and guaranteeing new purchases are correctly categorised. This is where many small companies benefit from professional help, as getting these technical adjustments right can significantly impact your tax bill.

Conclusion

Year-end accounts might feel like a burden, but they're actually an opportunity to properly understand your business's financial health. Getting them right isn't just about avoiding penalties; it's about having accurate information to make better business decisions and potentially save money on your tax bill.

The key to stress-free year-end accounts is starting early and staying organised throughout the year. Keep your bookkeeping up to date, file documents as you go, and don't leave everything until the last minute. Whether you handle them yourself or work with an accountant, understanding what's required and when makes the entire process far more manageable.

Remember, you don't have to navigate this alone. Good accounting software can automate much of the grunt work, and professional accountants can guarantee you're compliant whilst maximising your tax efficiency. The investment in getting your accounts right far outweighs the cost of penalties, missed deadlines, or overlooked tax savings. Your future self will thank you for taking year-end accounts seriously today.

Frequently Asked Questions

Can I prepare limited company accounts myself without an accountant?

Yes, you can legally prepare your own limited company accounts if you understand accounting principles and compliance requirements. However, most directors use accountants to ensure accuracy, maximise tax efficiency, and avoid costly penalties from errors or missed deadlines, making professional help a worthwhile investment.

What happens if I file late accounts for my limited company?

Late filing triggers automatic penalties starting at £150 for Companies House (up to £1,500 after six months) and £100 for HMRC. Beyond financial penalties, persistent late filing can damage your credit rating, lead to your company being struck off, and attract 7.75% annual interest on unpaid tax.

What's the difference between statutory accounts and management accounts?

Statutory accounts are legally required financial statements filed with Companies House, following specific regulatory formats. Management accounts are internal reports prepared regularly throughout the year for decision-making purposes. Whilst statutory accounts are mandatory, management accounts are optional but valuable for monitoring business performance and cash flow.

How much does it cost to file year-end accounts for a small limited company?

Filing fees to Companies House are £13 for online submission or £40 by post. However, total costs typically range from £500-£2,000+, including accountancy fees, depending on company complexity, transaction volume, and whether you need additional services like tax planning or payroll management.