A year-end is the end of a business’s accounting year. So, year-end accounts are simply a summary of a business’s overall performance for an accounting year.
Unlike sole traders, limited companies are legally required to file their statutory year-end accounts with both HMRC and Companies House.
The reason for this is that, because the directors of limited companies are not personally liable for the debts of the company, all financial information must be transparent and made public for examination by anyone, from suppliers to investors and customers.
What are the Legal Requirements?
Legally, you have to submit year end accounts to HMRC with your corporation tax return. These need to be submitted online at the same time as your tax return and within 12 months of the end of company’s financial year.
You also need to file year end accounts with the Companies House which must be submitted within nine months of the end of company’s financial year.
It is also a legal obligation for you to keep detailed accounting records for six years from the end of last company’s financial year.
What happens if you miss the deadlines?
Both HMRC and Companies House can impose fines if you miss the deadlines.
How can CWI Accountants help you?
Preparing your company’s year end documents can be a very hectic time while trying to keep your business running smoothly.
Working with CWI Accountants will make the process of filing year end accounts less stressful and the best part is that you will be eliminating the possibility of making costly mistakes, while potentially unearthing ways to save time and money.