How To File Accounts To Companies House

If you own a limited company in the UK, you have a legal obligation to file accounts to Companies House. This applies to your company even if you are not currently trading or are dormant. Filing accounts with Companies House is a straightforward process, but it’s important to get it right, as failure to do so could result in fines or even legal action against your company. In this article, we’ll explain how to file accounts to Companies House, including the different types of accounts, the filing deadlines, and the process itself.

What Are Annual Accounts?

Annual accounts, also often referred to as “financial accounts”, are a set of financial statements that show your company’s financial performance over the past year. Annual accounts are used by Companies House, HM Revenue and Customs (HMRC) and other interested parties to assess your company’s financial health.

What Information is Included in an Annual Account?

An annual account must include comprehensive and accurate information regarding the company’s financial situation. This includes:

• Balance sheet: a balance sheet shows the assets, liabilities, and equity of your company at a specific point in time. It provides a snapshot of your company’s financial position and is used to assess your company’s ability to meet its financial obligations.
• Profit and loss account: a profit and loss account shows the income and expenses of your company over the financial year. It’s used to calculate your company’s net profit or loss and is an important measure of your company’s financial performance.
• Notes: the notes to the accounts provide additional information about your company’s financial performance, including details of any significant events or transactions that have occurred during the financial year.
• Director’s report: the director’s report is a narrative report that provides an overview of your company’s performance and includes information on any major risks or uncertainties that may affect the company’s future performance. It’s a requirement for all medium and large companies and is optional for small companies.
• Auditor’s resort (if applicable): if your company is required to have an audit, you’ll need to include an auditor’s report with your accounts. The auditor’s report provides an independent assessment of your company’s financial statements and provides reassurance to investors and other stakeholders that your accounts are accurate and complete.

It’s important to note that your accounts should comply with the relevant accounting standards, such as the International Financial Reporting Standards (IFRS) or UK Generally Accepted Accounting Practice (UK GAAP). If you’re not sure which standards apply to your company, you should seek advice from an accountant or financial advisor.

What Are The Different Types of Accounts?

There are three main types of accounts that companies can file with Companies House:

• Small company accounts
• Medium-sized company accounts
• Large company accounts

The type of accounts your company needs to file depends on its size. Companies are defined as small, medium-sized, or large based on the number of employees, turnover and balance sheet total. The thresholds for each category are as follows:

Small company accounts:

• Fewer than 50 employees
• Turnover of less than £10.2 million
• Balance sheet total of less than £5.1 million

Medium-sized company accounts:

• Fewer than 250 employees
• Turnover of less than £36 million
• Balance sheet total of less than £18 million

Large company accounts:

• More than 250 employees
• Turnover of more than £36 million
• Balance sheet total of more than £18 million

Most companies in the UK are small companies and will file small company accounts.

When Are Accounts Due?

Limited companies in the UK are required to prepare and submit their first financial report 21 months after registering with Companies House, followed by annual financial reports 9 months after your company’s financial year ends. 

It’s important to note that these deadlines are strict, and failure to file accounts on time can result in penalties and legal action against your company.

How to File Accounts to Companies House

Filing accounts with Companies House is a straightforward process, and there are three ways to do it:

• File online
• File by post
• File using third-party software

We’ll explain each option in more detail below.

File online

Filing online is the most popular and quickest way to file accounts with Companies House. To file online, you’ll need to have registered for Companies House WebFiling service. If you haven’t registered yet, you can do so on the Companies House website.

Once you’re registered, you can log in to WebFiling and select the “File your company’s annual accounts” option. You’ll then need to enter your company’s authentication code, which you should have received in the post from Companies House. If you haven’t received your authentication code, you can request a new one through WebFiling.

After entering your authentication code, you’ll be taken through the process of uploading your accounts. You’ll need to upload a copy of your accounts in PDF format, along with any supporting documents. Once you’ve uploaded your accounts, you’ll need to review them and confirm that they’re accurate and complete the article

File by post

If you prefer to file your accounts by post, you can do so by completing and sending the appropriate Companies House form to the address on the form. The form you need to use depends on the type of accounts you’re filing. You can find the forms on the Companies House website.

When filing by post, you’ll need to ensure that your accounts are in the correct format and that you’ve included all the necessary information. You should also make sure to send your accounts well in advance of the filing deadline to allow for any delays in the post.

File using third-party software

Finally, you can file your accounts using third-party software. There are several software providers who offer services for filing accounts with Companies House. These providers can help ensure that your accounts are filed correctly and on time. Some providers may also offer additional services such as bookkeeping and accounting support.

What Happens if I Don’t File My Accounts on Time?

Filing your accounts on time is a legal requirement in the UK, and failing to do so can result in penalties and fines. The penalties for late filing depend on how late your accounts are and whether it’s your first or subsequent late filing.

For private limited companies, the penalties for late filing are as follows:

• Up to 1 month late: £150
• 1 to 3 months late: £375
• 3 to 6 months late: £750
• More than 6 months late: £1,500

If you file your accounts late for two years in a row, the penalties will double.

In addition to the financial penalties, failing to file your accounts on time can also have other consequences. For example, your company’s credit rating may be negatively impacted, which could make it harder to secure finance or do business with suppliers. Your company may also be struck off the Companies House register, which means that it will no longer legally exist.

Can I Appeal a Late Filing?

You can appeal a late filing penalty if you have a reasonable excuse for filing your accounts late. However, you must do so within 30 days of receiving the penalty notice. A reasonable excuse is something that is outside of your control and has prevented you from filing your accounts on time. Examples of reasonable excuses might include:

• Illness or injury that has made it impossible for you or your accountant to work
• The death of a close family member or business partner
• A fire or flood that has damaged your business premises or records
• Technical problems with Companies House online filing systems
• Postal delays that have prevented your documents from arriving on time

If you have a reasonable excuse for filing your accounts late, you should write to Companies House explaining the circumstances and providing any relevant evidence. Companies House will then review your case and decide whether to cancel or reduce the penalty.

It’s worth noting that the definition of a reasonable excuse is quite strict, and Companies House will only cancel or reduce penalties in exceptional circumstances. If you’re unsure whether you have a reasonable excuse, you may want to seek advice from an accountant or financial advisor.

Do I Need to Send The Company Annual Report to Anyone Else?

As a private limited company, you are required to send your annual report to Companies House. If your company has shareholders, they are also entitled to receive a copy of your annual accounts and reports.

It is possible that HMRC may need to see your annual report as it may be required for your company tax return. 

If you’re unsure about your reporting obligations, you may want to seek advice from an accountant or financial advisor.

What is a Dormant Company?

A dormant company is a company that is registered with Companies House but is not currently carrying out any business activity. This means that the company is not trading and has no income or expenses.

Dormant companies are often set up for future use or as a way to protect a company name. They are also sometimes used as holding companies for subsidiary companies.

If your company is dormant, you may still be required to file accounts with Companies House. The filing requirements for dormant companies are less onerous than for active companies, but you will still need to submit a set of annual accounts and a confirmation statement to Companies House.

The annual accounts for a dormant company should include a balance sheet and any notes to the accounts. You do not need to provide a profit and loss account or a cash flow statement. The accounts should be filed within nine months of the end of the company’s financial year.

The confirmation statement for a dormant company should include details of the company’s officers and registered office address. You should also confirm that the company is dormant and provide details of any changes to the company’s share capital or statement of capital.

It’s important to note that if your company starts trading again, it will no longer be considered dormant and will need to start filing full annual accounts with Companies House.

What is a Micro-Entity Account?

A micro-entity account is a simplified set of annual accounts that can be submitted by small companies that meet certain criteria. Micro-entity accounts are designed to reduce the regulatory burden on small companies and are less detailed than the full annual accounts that are required for larger companies.

To qualify as a micro-entity, a company must meet two of the following three criteria:

• Turnover of no more than £632,000
• Balance sheet total of no more than £316,000
• Average number of employees during the year of no more than 10

If your company qualifies as a micro-entity, you can prepare and submit micro-entity accounts to Companies House. Micro-entity accounts must include a balance sheet, a profit and loss account, and any notes to the accounts. You do not need to provide a cash flow statement.

The micro-entity accounts should be filed with Companies House within nine months of the end of the company’s financial year. Micro-entity accounts are generally easier and less expensive to prepare than full annual accounts.

It’s important to note that while micro-entity accounts can be a useful way for small companies to reduce their reporting requirements, they may not always provide a complete picture of a company’s financial performance.

Final Thoughts

In conclusion, filing accounts with Companies House is a vital part of running a company in the UK. The process can be complex, but it’s essential to comply with all the relevant regulations to avoid penalties and ensure that your company is operating in a transparent and responsible manner. 

By understanding the different types of accounts that may need to be filed, the deadlines for filing, and the consequences of not filing on time, you can ensure that your company remains compliant with all the legal requirements. Completing a detailed and accurate annual report will also give you a good idea of your company’s current financial status. 

Whether you’re a small startup or a larger established company, it’s important to take the time to carefully prepare and file accounts to Companies House, and seek professional advice if necessary, to ensure that you meet all the regulatory obligations and keep your company in good standing.

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