company accounts for companies house

Company accounts filing deadline

conciseaccountancy June 17th, 2019 company accounts

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Company accounts filing deadline is set by Companies House on the day your company was incorporated. By comparison, the company accounts filing deadline for a private limited company and a public limited company is different. A private company has longer period to file compared to a public company.

For example, if your company is incorporated on 28 December 2018 and your default company accounting year end date is 31 December. This is same for both types of companies.

However, if your company is a private limited company, then your accounts filing deadline would be 30 September 2020. Which is nine months after your year end.

On the other hand, if your company is a public limited company then your default filing deadline would be 30 June 2020. which is six months and it’s shorter.

Change your year end date

You are allowed to change your company accounts filing deadline. In this case, you use the form AA01 to change your accounting reference date. You must submit the form with Companies House.

For one thing, your company accounts must not already overdue. Furthermore, your new accounts year end date must not cover period more than 18 months.

First company accounts filing deadline

The filing periods for first accounts for a private limited company is 21 months whereas for a public company is 18 months.

Your company accounts filed with Companies House is available for public to view. In other words, anyone interested in your company affairs can check your accounts with Companies House.

Audit or non-audit company accounts

Generally, a private limited company that meet the criteria of a small company is allowed to submit non-audit accounts with Companies House. In this case, you must opt to take advantage of the audit exemption. Accordingly, this fact must be disclosed in your company accounts.

Any other companies, medium sized or a large company and public limited companies, all must submit audited company accounts with Companies House.

The law governing the preparation of company accounts for a public limited company especially those with their shares listed in the stock exchange is vigorous. In this case, you are not only must comply with Companies House rules but also the Financial Conduct Authority (FCA) requirements.

Dormant company

Ordinarily, a dormant company registered as a public limited company must submit an audited company account. Even if your public limited company has no transaction whatsoever. In this situation, you must hire a qualified Auditor to take care of your company accounts.

You may re-register your public company to a private company is having a PLC status no longer serve your business.

On one hand, if your dormant company is a private limited company then you can file a non-audit dormant account.

Late filing penalty

You will receive late filing penalty if your accounts are filed late. The late filing penalty starts from £150 to a maximum of £1500 for a private company. It will cost you a lot more for a public limited company.

You may appeal to your late filing penalty If your circumstance causing the late filing is exceptional. In this case, you must write to Companies House explaining it. Even better if you have evidence to support your case. Otherwise, you would have no choice but to pay the penalty.

Submit your account soon after your financial year end. Don’t wait till last minute.

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Accounting for stock

conciseaccountancy June 8th, 2019 company accounts

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Accounting for stock involves physical stock counts to its valuation at the financial year end. The closing stock value to be registered in your company accounts would have impact on your corporation tax liability.

If your company is subject to an audit, you auditor will take a good look at your company’s stock valuation policy. Especially if the stock represents significant assets in the company’s accounts and high stock volume is involved.

Normally, your auditor would send their own people to attend stock take at your premises. They would use the stock record you provide them. They would test the effectiveness of your stock accounting system. they would seek understanding how your business is recording, valuing, managing and storing your stock items.

To begin with they would select samples of stock items on your stock record and trace it through to the physical stock item. If they noted any variances in your physical stock to that of your stock record. They would want to know how you deal with damaged stock and missing stock and so on.

Consequently, your auditor would issue either qualified or unqualified audit report. Ideally, you would like to have an unqualified audit report. Because, this means your stock accounting system is good and gives a true and fair view of your company stock’s affairs.

However, if your auditor going to issue a qualified audit report, they would give reasons for their qualified report. You can then work to improve your stock accounting system so that you would not get the same audit report in the subsequent year. It is very important you get your stock accounting system right especially stock is your major asset in your business.

Objectives of stock valuation

The stock value included in your balance sheet represents your company’s current assets, it is often referred to as the stock or closing stock value. Usually, stock can be turned into cash fairly quickly if necessary. Concurrently, this closing stock value included in your balance sheet also also represent the value excluded from your profit and loss account.

There are two objectives you can achieve playing with stock valuation figures. Firstly, you can shift your business profit from one year to another by overvaluing your stock to achieve minimum corporation tax liability. Secondly, you can create fictitious profit by undervaluing your stock.

For this reason, some companies may attempt to overvalue their stock in order to pay minimum corporation tax. On the other hand, others may try to undervalue their stock to improve their financial performance for borrowing or proposing dividends purposes. Dependent on what your business needs at the time. However, this is not allowed by law.

Stock accounting methods

Generally, there are three generally accepted methods of accounting stock.

The First In First Out (FIFO)
The Last In First Out (LIFO)
The Weighted Average Cost valuation

FIFO is widely used by many businesses. The stock valuation using FIFO is stock that is received first is also sold first. LIFO is stock received last is sold first. This is opposite of FIFO. Whereas Weighted Average Cost valuation is taking all the stock costs and divide them by the number of stock to arrive at the average cost of stock per unit.

Generally speaking, choosing an accounting for stock method to used for your business is largely dependent on your business itself. For example, if you are in fresh fruits wholesale, the FIFO method may be suitable and if you are in a vintage wine seller then LIFO is.

Above all, your accounting for stock policy adopted must provide true and fair value of actual physical stock held. In other words, your stock value shall be closest to its net realizable value or cost.

Stock items management

It is ideal to have a system to keep track of your physical stock. You may use a bespoke stock accounting system or manual stock recording system. Organised your physical stock storage for easy access and counting. This would ease your stock replenishment task too.

Occasionally, schedule a physical stock count. This would flag up the variances between your physical stock and stock on your system. You could then update your stock record accordingly.

Also, investigate the stock variances such as what made up the physical and system stock variances. Sometime, the stock could be still in transit, or damaged or stolen. Encourage staff to report damaged stock items and have a record of how the stock was damaged.

On one hand, regular stock count would also help to identify slow moving stock items. What are you going to do with slow moving stock items? You may sell it at discounted price. Or may be you return them to your suppliers if you have that arrangement in place.

Likewise, for high demand stock items, are the stock coming in on time to meet the demand?

Besides, regular stock take would also encourage staff that handling stock to be more efficient in terms of storage and retrieving stock items.

Basically, accurate physical stock would give you accurate stock value to be booked on your balance sheet. At the same time, it would also help you to make an informed decision on stock ordering and management.

Non deductible business expenses

conciseaccountancy June 6th, 2019 company accounts

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Generally, business expenses incurred necessarily and exclusively for business are allowed for tax purposes. However, there are some non-deductible business expenses when come to calculating your tax liability.

For example, where the expenses incurred relates to both business and private use, the personal use portion is not tax deductible for your company. At the same time, you must add it back to your business accounting profit when calculating your tax liability.

Motor expenses

Likewise, a motor car is used for both business and private purposes. The capital allowances and the total car running expenses will be split in proportion to the business and private mileage. For this purpose, you will need to keep records of your total mileage and the number of miles traveled on your business. In order to calculate the correct amount of motor car expenses for your business.

Entertaining customers are non deductible business expenses

Usually, entertaining expenses are not tax deductible. However, staff entertaining expenses and gifts to employees are deductible but there are restrictions. Seek accountant advice on this.

Bribes, kickbacks. fines, penalties and lobbying costs.

These expenses are self explanatory of why they are not tax deductible.

Start-up costs

On one hand, If you have just started your business, you may be wise to consult a tax accountant advice especially if your start-up costs are rather large.

Working from home

On the other hands, If you are working from home, you will need to keep sufficient records. For example, to back up the proportion of heating and lighting costs that relate to your business and your private use.

Life insurance premiums

A business may buy life insurance coverage on key officers and executives. However, if your business is the beneficiary, the premiums are not deductible. Consequently, the proceeds from a life insurance policy are not taxable income to your business in the event of death. Because the cost of the premiums was not deductible. In short, premiums are not deductible, and proceeds upon death are excluded from income tax.

Travel and convention attendance expenses

Occasionally, some businesses pay for rather lavish conventions for their managers. Sometime, spend rather freely for special meetings at attractive locations that their customers attend for free. The UK tax office takes a dim view of such extravagant expenditures. They may not allow a full deduction for these types of expenses. The HM Revenue and Customs (HMRC) holds that such conventions and meetings could have been just as effective for a much more reasonable cost. In short, a business may not get a full deduction for its travel and convention expenses if the HMRC audits these expenses.

Transactions with related parties

The HMRC takes a special interest in transactions where two parties are related in some way. For example, a business may rent space in a building owned by the same people who have money invested in the business. Thus, the rent may be artificially high or low in an attempt to shift income and expenses between the two tax companies or individuals. In other words, the transactions may not be at arm’s length basis. For this reason, a business that deals with a related party must show that the price paid or received is at current market value.

Lastly, seek advice from tax accountants if you have incurred business expenses that you are not sure whether they can be claimed against your business profit fully or partially.

Director report

conciseaccountancy May 25th, 2019 company accounts

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Director report is prepared and form part of your company accounts. You must present director’s report together with your company accounts to your shareholders. At the same time, submit a copy with Companies House. In addition, send another copy together with your corporation tax return to HM Revenue and Customs.

Additionally, you would need to include an Auditor report if your company is subject to an audit as required by law.

Generally, your company may file an abridged account or micro entity account with Companies House if your company meet the eligibility criteria either or both according to Companies Act. For this purpose, you do not require to include a director report with the abridged account and a micro company account and they put less information for the public.

Broadly, your director report would present the following.

Principal activity

First of all, you must specify your company’s principal activity including any significant changes during the accounting period. Your principal activity in your director report must closely match your SIC code in your confirmation statement.

Business review

Secondly, you are to include a true and fair review of your business performance during the year. Hence, provide description of its principal risks and uncertainties plus analysis of performance indicators. Where possible reference it to amounts included in the accounts.

Future developments

You must disclose information about your company future plus any events happened after the balance sheet date. This is to give a true and fair view of your business future affairs to the readers of the accounts.

Employee policy

Equally important, you must disclose a staff policy pertaining staff involvement in matters of concern to them. This includes employment of disabled employees.

Political and Charitable donations

Your company is to disclose donations made if any. You must provide the details of amounts and the name of each person or organization receiving such amounts. However, expenditure on charitable purposes outside UK may not be disclosed.

However, a wholly owned subsidiary company may choose not give this information. But the parent company must give any such donations made by the subsidiary company.

Dividends

Your company must include information about dividends proposed and paid during the accounting year.

Payments to suppliers (creditors)

You must disclose the following if your company is a public limited company. Or that your company have been classified as large private limited company that is a subsidiary of a public limited company.

A statement of policy on the payment to suppliers.
If your company subscribes to a code on payment practices, such as the CBI code. This must be stated, and it must also be stated how details of the code may be obtained.
A statement of the average number of days’ credit outstanding at the balance sheet date.

Directorships

On the other hand, you must disclose the names of all persons who were directors during the financial year. For this purpose, If a person was not a director for the whole of the year. Then, you must give the date of appointment and/or the date of resignation or removal.

Correspondingly, you must submit relevant Companies House forms for director appointment and termination with Companies House.

Land and Building

You must disclose any difference in market value of interests in land or buildings over book value at the balance sheet date. Especially if the difference between the cost of and market value for the land and building is considerable. Hence, the directors believe that the members should be aware of this fact.

Share Capital

You must present the changes in share capital during the accounting year. For this reason, you must disclose new shares issued and the acquisition of your company’s own shares, if any.

Accounting principles

You must disclose the accounting principles adopted in your accounts preparation.

Going concern

If applicable, directors should report:

Any material uncertainties, of which your directors are aware. For instance, in making their assessment of the going concern status. Your director has cast significant doubt on your company’s ability to continue as a going concern.
Disclose the fact where the foreseeable future considered by your directors in their assessment of the going concern status of your company. The period is less than one year from the date of approval of the financial statements.
Disclose the fact where the financial statements are not prepared on a going concern basis. Also, the basis on which you prepare the financial statements. For instance, you prepare your accounts on break up basis. Additionally, you include the reasons why you do not consider your company as a going concern.

Disclosure statement to auditors

Lastly, if your company is to produce an audited financial statements. Then, your director report must include a statement to the effect that. In the case of each of the persons who are directors at the time the report is approved.

For example, so far as the director is aware, there is no relevant audit information of which your company’s auditor is unaware.

In addition, the director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information. Concurrently, to establish that your company’s auditor is aware of that information.

Audit on company accounts

conciseaccountancy May 24th, 2019 auditing, company accounts

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Audit on company accounts are compulsory for large and medium size company. However, small company and micro entity may claim audit exemption. In other words, small company and micro entity do not need to audit their accounts.

However, some companies even if they are small companies and micro entities are not allowed to claim audit exemption. They must deliver audited company accounts to Companies House.

These companies are:

A public limited company.
A company is parent or a subsidiary of a group and the group turnover exceeds the audit threshold.
An authorised insurance company or carrying out insurance market activity.
A company involved in banking or issuing e-money.
A Markets in Financial Instruments Directive (MiFID) investment firm or an Undertakings for Collective Investment in Transferable Securities (UCITS) management company.
A corporate body and its shares have been traded on a regulated market in a European state.

Compulsory Audit

	Large company	Medium size company
Sales less than	> £36 million	£36 million
Balance Sheet total	> £18 million	£18 million
Average no. of staff less than	> 250	250

Large company must prepare and submit full audited accounts with Companies House.

Similarly, medium size company must have their accounts audited but may opt to prepare accounts giving less information for public record.

Audited accounts comes with an auditor report. Your auditor would express their opinions on your accounts whether it gives true and fair view. It is a good report if you get an unqualified audit report.

Voluntary audit

	Micro entity	Small company	Audit exemption
Sales less than	£632,000	£10.2 million	£10.2 million
Balance Sheet total	£316,000	£5.1 million	£5.1 million
Average no. of staff less than	10	50	50

Small company and micro entity company may choose not to audit their company accounts by claiming audit exemption.

Accounting and auditing are two different assignments. To put it simply, accounting is assembling transactions into profit and loss account and balance sheet and other financial statements. Whereas auditing is checking the accounting is accurate. For this reason, you must hire a qualified auditor to do the work. The auditing fee is on top of your accounting fee.

However, they may opt for voluntary audit if an audit would benefit them. For example, a company preparing for admission into stock exchange require minimum of three years audited accounts with unqualified audit report prior to admissions.

Generally, an audit includes verifying information in your accounts on sample test basis and also your company documents such as the Confirmation Statement filed with Companies House if it is still valid. ‘in addition, the disclosure in the accounts are appropriate.

Where to send your company accounts

Where to send your signed company accounts is dependent on where your company’s registered office is situated. For instance, company with registered office in England and Wales may send their accounts to Companies House London office or Companies House Cardiff office.

As a matter of fact you may file your micro entity account using the webfiling service. In this instance, you would require your authentication code for this purpose. The authentication code is the electronic equivalent of your director’s signature. Therefore always Keep safe of your code.

In situation where you have misplaced your code, you can request it again from Companies House. It takes five working days to arrive at your registered office address. However, if your registered office is no longer valid, change it.

Medium sized company accounts

conciseaccountancy May 24th, 2019 company accounts

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A medium sized company can prepare accounts according to special provisions applicable to medium sized companies. The benefit of preparing accounts according to medium sized company rules is that company can choose to disclose reduced information in the accounts for public record.

Medium-sized company criteria

Generally, your limited company must meet at least two of the following conditions in order to be eligible to prepare and submit medium sized company accounts.

	Threshold
Annual sales	Not more than £36 million
Balance sheet total	Not more than £18 million
Average number of employees	Not more than 250

Company cannot prepare and submit medium-sized company accounts

Your company cannot be treated as a medium sized company if it is, or was at any time during the financial year, one of the following:

A public limited company.
A company that has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity or that carries on an insurance market activity.
A member of an ineligible group.

On the same note A group is ineligible if any of its members is:

A public limited company.
A body corporate (other than a company) whose shares are admitted to trading on a regulated market.
A person (other than a small company) who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity.
A small company that is an authorised insurance company, a banking company, an e-money issuer, a MiFID (ie Markets in Financial Instruments Directive) investment firm or a UCITS (i.e.Undertakings for Collective Investment in Transferable Securities) management company.
A person who carries on insurance market activity.

Qualifying as a medium-sized company every year

Your company qualify as medium sized company in your first accounting period if you fulfil the conditions in that period. In any subsequent period your company must fulfil the conditions in that period and the period before.

However if your company which qualified as medium sized in one period no longer meets the criteria in the next period, you may continue to claim the exemptions available for the following period. Thereafter if your company then reverts back to being medium sized by meeting the criteria the exemption will continue uninterrupted.

Contents of medium-sized company accounts

In summary your Medium sized company accounts must include:

Profit and loss account.
Balance sheet, showing the printed name and signature of a director.
Disclosure notes to the accounts.
Group accounts (if appropriate).
Directors’ report including a business review (or strategic report) showing the printed name of the approving secretary or director.
Auditor’s report that includes the name of the registered auditor unless the company is exempt from audit.

Your medium-sized company must deliver all of the constituent parts of your company accounts to Companies House.

Medium sized company exemptions

Your medium-sized company may omit certain information from your business review or strategic report in your directors’ report. This includes analysis using key performance indicators so far as they relate to non-financial information.

Medium sized company which is part of an ineligible group can still take advantage of the exemption from disclosing non-financial key performance indicators in your business review or strategic report.

Medium-sized company preparing accounts according to Companies Act may omit disclosure with respect to compliance with accounting standards and also the related party transactions from your company accounts send to their members.

Your company may also choose to deliver a slightly reduced information of the profit and loss account. Please refer to regulation 4 of The Large and Medium sized Companies and Groups Accounts and Reports Regulations 2008 for further information.

Some subsidiary company may be exempt from audit where they meet certain conditions for financial years ending on or after 1 October 2012.

Medium sized groups

There are no special rules for medium sized groups. Your medium sized parent company must prepare group accounts and deliver them to Companies House.

Remember to deliver your company accounts on time to Companies House to avoid late filing penalty.

HMRC telephone helpline

conciseaccountancy May 24th, 2019 company accounts, Payroll and staff, Useful Government contacts, VAT compliance

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HMRC telephone helpline if you have any questions about your corporation tax, self assessment, VAT, PAYE and payroll compliance, tax credits and so on.

HMRC stands for HM Revenue and Customs. They are the official Tax Authority in the United Kingdom. HMRC provide dedicated telephone helpline for specific tax related subject matters to help businesses and companies to deal with their tax matters efficiently.

Ensure you dial the correct numbers to avoid being transferred from department to department to reach the right person to speak to.

For general help, you may tweet with @HMRCcustomers.

HMRC department contact details

HMRC Department	Tel Helpline
Self Assessment general enquiries	Telephone: 0300 200 3310 Textphone: 0300 200 3319 Outside UK: +44 161 931 9070 Postal: Self Assessment HM Revenue and Customs BX9 1AS United Kingdom
Tax credits general enquiries	Telephone: 0345 300 3900 Textphone: 0345 300 3909 Outside UK: +44 02890 538 192 Postal: Complaints or change of circumstances Tax Credit Office HM Revenue and Customs BX9 1LR United Kingdom New tax credit claims Tax Credit Claims HM Revenue and Customs BX9 1HE
Child benefit general enquiries	Telephone: 0300 200 3100 Textphone: 0300 200 3103 Outside UK: +44 161 210 3086 Postal: HM Revenue and Customs Child Benefit Office PO Box 1 Newcastle Upon Tyne NE88 1AA United Kingdom
Income tax general enquiries and Marriage Allowance	Telephone: 0300 200 3300 Textphone: 0300 200 3319 Outside UK: +44 135 535 9022 Postal: Pay As You Earn and Self Assessment HM Revenue an Customs BX9 1AS United Kingdom
National Insurance general enquiries	Telephone: 0300 200 3500 Textphone: 0300 200 3519 Outside UK: 44 191 203 7010 Postal: PT Operations North East England HM Revenue and Customs BX9 1AN United Kingdom
Employers general enquiries	Telephone: 0300 200 3200 Textphone: 0300 200 3212 Outside UK: +44 151 268 0558 Fax: 03000 523 030 Postal: PT Operations North East England HM Revenue and Customs BX9 1BX United Kingdom
VAT general enquiries	Telephone: 0300 200 3700 Textphone: 0300 200 3719 Outside UK: +44 2920 501 261 Postal: HM Revenue and Customs VAT Written Enquiries Team Portcullis House 21 India Street Glasgow G2 4PZ United Kingdom
Construction Industry Scheme general enquiries	Telephone: 0300 200 3210 Textphone: 0300 200 3219 Outside UK: +44 161 930 8706 Postal: PT Operations North East England HM Revenue and Customs BX9 1BX United Kingdom

Courier documents to HMRC

Lastly, if you are going to use a courier service to deliver your documents to HMRC with PO Box and BX postcodes.

Please use the address below instead:

HM Revenue and Customs
Benton Park View
Newcastle Upon Tyne
NE98 1ZZ
United Kingdom

HMRC online service

Broadly, HMRC has dedicated technical support helpline to help with any filing problems you face.

If you have any technical issues please call 0300 200 3600. The number for textphone is 0300 200 3603. If you are calling from outside the United Kingdom call +44 161 930 8445.

Subsidiary

conciseaccountancy May 24th, 2019 company accounts

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A Subsidiary company has different financial reporting requirements under the Companies Act 2006. Generally, a company is a subsidiary of its holding company if either or combination of the following relationship exists.

The holding company:

Holds a majority of the shareholders’ voting rights in it.
Is a member of the subsidiary. It has the right to appoint or remove directors. It also holding a majority of voting right at meetings of its board of directors.
Is a member of the subsidiary and controls alone, pursuant to an agreement with other shareholders and members, a majority of the voting rights in it.
Has the right to exercise a dominant influence over it by virtue of provisions in the subsidiary’s Memorandum or Articles or by a control contract.
Exercises a dominant influence over. It also has the power to exercise a dominant influence over, or is managed on a unified basis with, the company.
May also be a subsidiary of another, Through an intermediate parent company.

Subsidiary group accounts

In general, a subsidiary company of which it is also a parent company to other subsidiaries may require to prepare group accounts. Accordingly, to consolidate profit and loss accounts if assets and turnover exceed the group accounts preparation exemption threshold.

Audited company accounts

On one hand, a subsidiary company which is part of group of companies listed in the Stock Exchange is not eligible to file abridged accounts. Even though it meets the small and medium sized company criteria. In this circumstance, the company must submit an audited company accounts with Companies House.

Confirmation statement

Another key point, the company must also deliver Confirmation statement to Companies House. Failure to submit your confirmation statement is a criminal offence. Consequently, all your company officers are liable to fines and imprisonment.

Seek accountant advice if you have any questions about a subsidiary company accounts preparation or filing your confirmation statement.

Submit company accounts on paper

conciseaccountancy May 24th, 2019 company accounts

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Limited company may submit their company accounts on paper to Companies House. Above all, your company accounts must arrive Companies House offices on time. Preferably well before your company’s filing due date. This is because your company will not be given any extra time if your accounts are rejected. As a result you would get a late filing penalty even your accounts just late by one day.

Company name and number

Your company name and number must appear on your company accounts documents such as your directors’ report or balance sheet. The name and number may also be shown on any cover sheet delivered with your accounts.

Signatory on company accounts documents

Your company accounts must meet the following requirements:

Director must sign on behalf of your board of directors and have his/her name printed on your balance sheet page.
Your directors’ report must include the printed name of your director or company secretary who signed the report.
if your company accounts include your auditor’s report, your auditor’s report must state your auditor’s name.

Please note that a legible signature on a balance sheet will not satisfy the additional requirement for a printed name. Companies House will reject any accounts that do not meet the above requirements. So it is important to check before submit your company accounts on paper.

Senior statutory auditor

Where your auditor is a firm, your auditor’s report must state the name of the auditor and the name of the person who signed it as the senior statutory auditor on behalf of the firm.

How to avoid late filing penalty

conciseaccountancy May 24th, 2019 company accounts

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How to avoid late filing penalty is simple. As you already know every limited company must file their accounts by due date. For this reason, all you need to do is to find out when is your due date and plan backward.

On the other hand, if you are not sure when is your company’s accounts filing due date, use Companies House Web check service to check or ask your accountant.

Ordinarily, Companies House will issue late filing penalty if your company accounts were submitted late. You must pay the penalty and no excuse unless your circumstance is exceptional.

Avoid late filing penalty

Principally, your company director has a duty to ensure your company accounts are delivered to Companies House on time.

For instance, a private limited company (LTD) is allowed to file their company accounts with Companies House within nine months after the accounting year ended. Whereas a public limited company (PLC) has six months to deliver their company accounts.

Guaranteed royal mail service

First of all, if your company filing deadline is next day. With this in mind, you may like to consider using guaranteed next day delivery post service.

First thing to remember the first class mail in the UK does not guarantee next day delivery. You will get late filing penalty if your company accounts reach Companies House late even by just one day. The penalty is £150 if your company is a limited company and for a public company you will receive a £750 penalty notice.

Accounts rejected by Companies House

In circumstance where you delivered your company accounts on time but later your account was rejected. For example, your director has not signed the balance sheet page. In other words, your company accounts do not meet the requirements of the Companies Act 2006. Later, you resubmit your accounts with Companies House and this time you already passed the due date. In this situation, you will receive late filing penalty. Thus, you must allow contingency plan for this kind of unforeseen situation.

Reminders for yourself

If you already know your company accounts filing deadline, mark your company accounts filing deadline in your diary or smartphone calendar. Set alert to remind yourself and to allow ample of time to prepare your company accounts and submit with Companies House.

Reminders from Companies House

Generally, Companies House sends out reminders to your company registered office address. Practically, you must act on reminders from Companies House promptly.

Besides, HM Revenue and Customs also send important letters to your company registered office. Usually, they require your directors must take some form of actions relating to your company tax affairs.

On the other hand, if you are unable to access mails sent to your company’s registered office address. Thus, it is time to change it. At the same time, you must notify Companies House of your new registered office address within 14 days accordingly.