Millhouses Accountancy Ltd

Millhouses Accountancy

The office, Gothic House, Barker Gate,

The Lace Market, Nottingham, NG1 1JU

Tel: 0115 882 0356

Mobile: 07450 989048

Email: nottingham@millhouses-accountancy.co.uk

 
Accountancy practice in nottingham

Accounting for Private Limited Companies

Preparing annual accounts

After the end of the financial year all limited companies must prepare annual accounts (known as statutory accounts) which meet either International Financial Reporting Standards or UK Generally Accepted Accounting Practice  (GAAP) from the company's financial records.  Copies of the statutory accounts must be sent to :

  • All Shareholders
  • People who go to the company's Annual General Meeting (AGM)
  • HM Revenue & Customs (HMRC) as part of your company tax return
  • Companies House (unless you send abbreviated accounts)

Whats included in a set of statutory accounts?

Statutory accounts must include :

  • A Balance Sheet which shows the value of everything the company owns, owes and is owed on the last day of the financial year
  • A Profit & Loss Account which shows the company's sales, running costs and the profit or loss it has made over the financial year
  • Notes about the accounts
  • A directors report
  • An auditors report 

Most small Private Limited Companies do not require an audit of their annual accounts - unless its articles of association say it must or shareholders ask for one.

If your company has a financial year ending on or before 30 September 2012 it may be eligible for an audit exemption if it meets both the following conditions :

  • has an an annual turnover of no more than £6.5 million
  • has assets worth no more than £3.26 million

For companies with a financial year ending on or after 1 October 2012 it must meet 2 of the following conditions to be eligible for an audit exemption :

  • has an annual turnover of no more than £6.5 million
  • has assets worth no more than £3.26 million
  • has 50 or fewer employees on average.

Where your company meets 2 of these conditions it is classed as small.  This means it can do the following :

  • Use an audit exemption (The company must then issue an audit exemption statement on the bottom of the Balance Sheet to this effect).
  • Send shorter (abbreviated) accounts to Companies house created from the statutory accounts. This means less information about your company will be publicly available.
  • Choose not to file a copy of the director's report

Abbreviated Accounts

Abbreviated accounts comprise the balance sheet from the company's full statutory accounts along with a few notes. The balance sheet must be signed by a director and their name printed on it.   A profit and loss account or directors report is not required to be filed.  You must still send full statutory accounts to shareholders and to HMRC with your company tax return.

What is the deadline for submitting accounts to Companies House ?

All private limited companies must file their accounts (including abbreviated accounts) within 9 months of the year end date.  For a public limited company they must be filed with 6 months of the year end.  The exception to this is if you are filing your company's first set of accounts.  If you are filing your company's first set of accounts they must be filed with companies house :

  • within 21 months of the date of incorporation for a private company or
  • within 18 months of the date of incorporation for a public company or
  • within 3 months of the company's year end, whichever is longer
Company accounts