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. They must include a balance sheet, a profit and loss account, notes to the accounts and a director's report, unless the company is a micro-entity. 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. ^[1] The statutory accounts must follow either International Financial Reporting Standards or UK Generally Accepted Accounting Practice. ^[1]

How do I prepare company accounts?

The steps follow from those rules. This is a general outline, not advice on a particular company.

1. Keep complete accounting records through the year, including money received and spent, assets, debts and stock. ^[7]
2. After the financial year ends, prepare the statutory accounts from those records under one of the two accounting frameworks. ^[1]
3. Have the directors approve the accounts, and have a director sign the balance sheet. ^[1]
4. Send copies to all shareholders and to anyone entitled to attend general meetings. ^[1]
5. File the accounts with Companies House and include them with the Company Tax Return sent to HMRC. ^[1]

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. ^[3]

For accounting periods that begin on or after 6 April 2025 the thresholds are as follows. ^[3]

• 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 ^[3]
• 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 ^[3]

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

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 ^[2]
• Company Tax Return to HMRC: 12 months after the accounting period ends ^[2]
• First accounts with Companies House: 21 months after the date of registration ^[2]

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. ^[2]

Companies House counts the deadline to the exact day and records the date acceptable accounts are received, not the day they were sent. ^[3]

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]

Companies House says the online service to file accounts and the Company Tax Return closed on 31 March 2026. ^[3] Until then, companies can file through commercial software, Companies House's WebFiling service for some account types, or on paper. ^[3] From 1 April 2028 a company must use commercial software to file accounts. ^[5]

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]

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: ^[6]

• £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 ^[6]

The penalty is doubled if accounts are late in two successive financial years. Directors are personally responsible for delivering the accounts on time. ^[6]

There can also be penalties for filing late with HMRC. ^[2]

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 a transaction covers more than one accounting period or the Company Tax Return was sent late. ^[7] The records themselves are covered in the guide to bookkeeping for a limited company.

Do I need an accountant?

The rules do not require a company to use one. GOV.UK says you can hire a professional such as an accountant to help with tax. ^[7] Many directors choose help because the accounts, the Corporation Tax computation and the filing all have to line up. Our comparison of a bookkeeper and an accountant shows how the roles differ. A specialist can explain what applies to a particular company. If you are comparing limited company accounting services, a review could identify whether you may be paying more than you need to.