Private Company
Accounts & Tax Returns

Private Company Accounts & Tax Returns

Everyone in business knows they should prepare accounts.  But did you know there were special rules? These can vary country to country – even across the UK.

We all know that tax must be paid, but again there are many rules that can vary depending on what you are doing.

Accountants learn those rules and are here to help you apply them, both in everyday tasks as well as in preparing statutory documents to present to the authorities.

The essentials

A limited company is obligated to prepare annual accounts, using defined principals and in a prescribed format

  • for shareholders
  • for Companies House
  • for HMRC

These accounts are also the basis for corporation tax calculations.

HMRC requires a corporation tax return and calculations along with the accounts, to be submitted electronically.  Corporation tax is due on taxable company profits.

We at Firestone can guide you through the maze of options, to prepare accounts for small and micro companies, that accurately tell the story of your business and take advantage of opportunities to keep your taxes low.

Finally, please be aware that HMRC and Companies House set you deadlines for the above, with penalties for late submission and late payment; so find out your deadlines now.

Year End Accounts

Companies House
A limited company must be registered with Companies House.

Every company is required to complete an annual confirmation statement to affirm that the information held at Companies House is accurate and up to date.

All businesses registered at Companies House must submit a set of annual accounts regardless of whether they have made a profit or loss, or even traded. If these are not kept up to date, the company may be fined or struck off the register.

If you set up a Limited Company, your first set of annual accounts will usually cover more than 12 months. The first accounting period runs from the day your company was set up, not the date you started trading, for a period of 6 to 18 months to your choice of year end date.  Subsequent periods will then be for 12 months.

Company Tax Returns

Accounts for a Limited Company must be submitted electronically to HMRC and must report assets and liabilities as well as profits and losses.

HMRC have made it mandatory for UK businesses to submit their company tax returns online and pay all corporation tax electronically.

At Firestone Accountants, we provide bespoke support to ensure that your business meets these specific requirements and timelines. We can administer and file all your tax returns on your behalf.

Knowing that your accounts have been prepared accurately and filed on time will give you peace of mind and free up precious time to focus on the critical tasks that drive your business.

Company Tax Returns
A limited company is required to submit an electronic corporation tax return annually to HMRC even if there is no corporation tax to pay.

If you pay employees, then you must deduct their taxes before payment via a PAYE scheme; and submit returns to HMRC on or before each payment.

If you provide employee benefits (e.g. a company car or health insurance) you must submit an annual report to HMRC and pay National Insurance thereon.

If your turnover exceeds the VAT threshold of £85,000 in any rolling 12-month period, you must register for VAT and submit an electronic VAT Return to HMRC every 3 months, even if you have no VAT to pay or reclaim.  These returns must be submitted via compliant software under HMRC initiative for Making Tax Digital (MTD).

It is tax efficient for a company to pay interest on loans from individuals, but such Private loan interest must also be reported to HMRC.

For our clients in the construction industry, we have in-depth knowledge of the Construction Industry Scheme (CIS) and off-payroll working rules IR35.

When do I need to file my Company Tax Return?
The deadline for filing your Corporation tax return is 12 months after the end of the tax period it relates to.  Tax periods are periods when the company is trading and usually match accounting periods but can not exceed 12 months so there may be two tax periods for a long accounting period.

The deadline for electronic payment of Corporation Tax is 9 months and 1 day after the end of the tax period.

You will be liable for penalties if you miss HMRC deadlines, so make sure you have them noted.

We at Firestone can guide you through the maze of options, to prepare accounts for small and micro companies, that accurately tell the story of your business and take advantage of opportunities to keep your taxes low.