Accounts overdue? Have you received a letter informing you your accounts are overdue and now have a hefty fine to pay? Or do you just not realise the obligations you have to submit annual accounts?
We have a guide which states what is required and could help you avoid those future fines.
Once your year end hits you have obligations to send your statutory accounts to HMRC (as part of your company tax return), Companies House, all the shareholders and the attendees of the company’s general meetings. These must be done within certain deadlines.
Statutory accounts must include:
• A statement of financial position (balance sheet). This provides a snapshot of the value of everything the company owns, what it owes and what it is owed on the last day for the financial year.
• A Profit and loss account. This shows the company’s revenues and expenses during the financial year and whether the company made a profit or loss during that year.
• Notes to the accounts. This includes accounting policies, depreciating assets, valuing inventory etc.
• A director’s report (unless you’re a micro-entity).
Enlisting the help of an accountant will help assure you that the right information is being submitted, at the right times and to the right places.
HMRC require the full statutory accounts mentioned above to be filed. They also require at the same time your company tax return.
When you file the company tax return you calculate the profit or loss for Corporation tax, this is different from the profit or loss in your annual accounts, and from here your corporation tax liability is calculated.
The deadline for this is 12 months from the end of your financial year, however, your corporation tax must be paid within 9 and 1 day after the end of your financial year.
You will undoubtedly incur fines for late filing! These are:
If your return is late 3 times in a row, the £100 penalties are increased to £500 each.
Additionally late paid tax will also incur interest charges at 3.25% on unpaid tax annually.
The filing requirements to Companies House depends on the size of your company. If you are a micro-entity, small or dormant company you will be able to submit simpler accounts. This is the statement of financial position and the notes. Accounts submitted to Companies House will be made public.
If you are unsure on what type of company you have and therefore the filing requirements, enlisting the help of an accountant will help assure you that the right information is being submitted at the right times and to the right places.
The deadline for the submission is 9 month and 1 day from the end of the financial year. Penalties for the late filing for a private limited company are:
If your accounts are late 2 years in a row the penalties are doubled.
Avoid those penalties!
Do you need help filing your end of year accounts? At Invicta Accounting Ltd we will ensure that everything is straight forward and that all the necessary deadlines are met no matter what type of corporation you are.
You will have a dedicated accountant who will be able assist you in understanding your business and getting your accounts in order.
At Invicta we use cloud accounting to book-keep and submit your accounts. This provides many benefits for you with having all your financial information in one place you are able to attain instant and real-time access to your accounts.
To get a quote call us today on 01624 672358 or alternatively send us a message at firstname.lastname@example.org