Close video

Guide to - Limited Company Accounts

Wednesday 12th June 2013

A Limited Company must prepare a set of financial accounts each year to submit to various authorities. It is the responsibility of the company directors to ensure this is done and filed within the appropriate deadline.

What do Limited Company Accounts contain?

Director's Statement

A set of company accounts will contain a statement from the directors, stating that the accounts show a true and fair picture of the Limited Company. This must be signed by the directors.


Profit & Loss

They will show a Profit and Loss Statement which starts with the turnover of the company (money coming in from clients), minus all expenses, giving you the profit or loss for the year. This is kind of a review of how well your business has done. What your company owes in Corporation Tax will be worked out from the profit.


Balance Sheet

There is a Balance Sheet, this shows what the business owns and owes at the point in time when the accounts were prepared. It will state how much money is in your company bank account, the value of any assets that the company has bought and paid for, e.g. computers, machinery, and cars. It will also show the value of all liabilities, e.g. overdrafts, money you may owe to suppliers at that point in time, your Corporation Tax liability and so on.



What happens to the accounts?

The accounts are submitted to Companies House within 9 months of your company's year end. These go onto the public record for anyone to see.

They are then sent along with your company's Corporation Tax return to HMRC. This must take place within 12 months of your company's year end.

There are fines and penalties in place for filing late.

This is a simple introduction to what Limited Company accounts contain and why they have to be prepared. There are literally thousands of accountancy and taxation rules that apply when preparing a set of Limited Company accounts and fines and penalties in place if you make a mistake - DIY Limited Company accounts are not a good idea.

Share This


GO

Popular Tags

IR35 (9) VAT (11) HMRC (49) Expenses (17) Dividends (11) Corporation Tax (19) Income Tax (34) Inheritance Tax (4) Self Assessment (27) PAYE (14) National Insurance (12) Annual Return (2) Companies House (9) Salary (12) Limited Company (56) Accounts (6) Company Secretarial (4) Insurance (6) Pensions (11) Mortgages (14)

Recent Articles

Budget 2018 Tax efficient salary and dividends in 2018-19 Pension contributions directly from your limited company Employer's National Insurance Allowance Budget 2016

Archive

August 2011 (1) October 2011 (1) November 2011 (1) March 2012 (1) March 2013 (3) May 2013 (1) June 2013 (18) July 2013 (5) September 2013 (1) October 2013 (4) November 2013 (5) December 2013 (5) January 2014 (4) February 2014 (5) March 2014 (5) April 2014 (4) May 2014 (4) June 2014 (4) July 2014 (4) August 2014 (3) September 2014 (4) October 2014 (4) November 2014 (8) January 2015 (3) February 2015 (3) March 2015 (2) April 2015 (3) May 2015 (3) June 2015 (3) July 2015 (3) August 2015 (3) September 2015 (3) October 2015 (3) November 2015 (2) December 2015 (3) January 2016 (4) February 2016 (3) March 2016 (1) April 2016 (1) August 2018 (2) November 2018 (1)