Financial accounting and tax reporting in the UK
Activities of a company in the UK, like in many other countries, are regulated by norms and rules. Pursuant to the British laws, all companies in the United Kingdom must prepare and file their financial accounts to relevant authorities at the end of each financial year.

What is a financial year of a company
A UK company has its financial year starting on the date of incorporation and ending on the last day of that month next year. For example, if you register a company on 20 September 2019, then its financial year will be calculated from 20 September 2019 and end on 30 September 2020. However, this can be shortened or extended to an earlier or later date, but you must the Companies House and HMRC about it to avoid penalties.
What’s included in annual accounts
Typical financial report will include:
- Balance sheet signed by a director;
- Profit and Loss statement (or an Income statement if it is a nil result);
- Notes to financial statements;
- Director’s report signed by a director or company’s secretary.
A tax return is another thing you must prepare and submit. If you are new to the UK system, we recommend you seeking professional help and support. Expert specialists will assist you in tax optimisation and preparing accounts and tax reports.
How to file company’s accounts
UK registered companies must submit their accounts to the Companies House and tax returns to the HM Revenue & Customs.
When to file annual accounts
Annual accounts must be filed not later than 9 months following the company’s accounting year. Corporation Tax must be paid at the same time.
Tax returns are given more time — 12 months after the company’s financial year has finished.
Do you need an audit?
We only focus here on small businesses that are not required to have their accounts audited. A UK company is classed as small if it meets at least two of the following three criteria:
- Turnover less than £6.5 million (for companies registered before 01 January 2016) or £10.2 million (for companies registered after 01 January 2016);
- Balance sheet total £3.26 million max (for companies registered before 01 January 2016) or £5.1 million (for companies registered after 01 January 2016);
- Less than 50 employees.
When you can send simpler accounts
Partnerships
Scottish Limited Partnership (SLP) are not required to file their accounts if they are not trading in the UK. However, they must submit their tax returns even if they are nil.
Dormant company
It is also easy to prepare and file accounts for a dormant company, i.e. the one that has been inactive during the reporting period. Dormant companies can submit abridged accounts including balance sheet signed by a director and written confirmation that the company has not had any significant transactions in the accounted period. The filleted accounts must also contain notes on accounts and statement for the preceding period if the company was active then.
Here we talk only about key reporting requirements for small limited liability companies. For more details please get in touch with professional advisers and accountants that specialise in supporting businesses across the United Kingdom.
