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We Prepare and Submit Annual Accounts and Tax Returns for Limited Companies

Annual Accounts

Your company’s annual accounts - called ‘statutory accounts’ - are prepared from the company’s financial records at the end of your company’s financial year.

Statutory accounts must include:

  • a ‘balance sheet’, which shows the value of everything the company owns, owes and is owed on the last day of the financial year

  • a ‘profit and loss account’, which shows the company’s sales, running costs and the profit or loss it has made over the financial year

  • notes about the accounts

  • a director’s report

Corporation Tax Returns

Your company must file a Company Tax Return if you get a ‘notice to deliver a Company Tax Return’ from HM Revenue and Customs (HMRC).

You must still send a return if you make a loss or have no Corporation Tax to pay.

When you file your tax return, you work out your:

  • profit or loss for Corporation Tax (this is different from the profit or loss shown in your annual accounts)

  • Corporation Tax bill

  

Is Your Company Active or Dormant?

HMRC and Companies House have different definitions when deciding on whether a company is dormant or active. 

Companies House - Dormant?

According to Companies House, a company is normally considered dormant when it has not had any significant transactions in the financial year.

The following transactions are not considered significant:

  • filing fees paid to Companies House

  • penalties for late filing of accounts

  • money paid for shares when the company was incorporated  

You don’t need to tell Companies House if you restart trading. The next set of non-dormant accounts that you file will show that your company is no longer dormant.

The deadline for your tax return is 12 months after the end of the accounting period it covers. You’ll have to pay a penalty if you miss the deadline.

There’s a separate deadline to pay your Corporation Tax bill. It’s usually 9 months and one day after the end of the accounting period.

HMRC - Dormant?

HMRC considers that your company or organisation has not yet become active or started trading if it has not yet engaged in any business activity.

Your newly-formed company or organisation may not be active for Corporation Tax purposes. However, you may still carry out activities or incur costs before you officially open your business without HMRC deeming that you have started trading.

Activities or expenditure to do with setting up a business that are not considered trading by HMRC for Corporation Tax purposes include:

preliminary activities such as writing a business plan or negotiating contracts

preliminary expenditure such as incurring costs with a view to deciding whether to start a business.