ACCOUNTING AND BOOK KEEPINGMSR Accounting practice provides accounting and book keeping to all small and medium companies and sold traders. We regularly work with clients to identify and provide the most suitable processes and resources for the stage of their development.

This service is geared to the needs of each individual client.  We can provide assistance on:

  • Accounts payable ledgers and payments
  • General ledger
  • Bank account creation and reconciliation
  • Fixed asset register
  • Depreciation schedules
  • Expense reports
  • Journals and accruals
  • Monthly trial balances in agreed chart of accounts
  • Year-end report
  • Payroll Service
  • VAT calculate and submission
  • Interim financial report
  • Business Plan
  • Financial Plan
  • HMRC queries
  • Company house queries

 

 

You must keep:

  • Records about the company itself
  • Financial and accounting records

Records about the company

  • You must keep details of:
  • directors, shareholders and company secretaries
  • the results of any shareholder votes and resolutions
  • promises for the company to repay loans at a specific date in the future (‘debentures’) and who they must be paid back to
  • promises the company makes for payments if something goes wrong and it’s the company’s fault (‘indemnities’)
  • transactions when someone buys shares in the company
  • loans or mortgages secured against the company’s assets
  • You must tell Companies House if you keep the records somewhere other than the company’s registered office address.

 

Accounting records you must keep

You must keep accounting records that include:

  • all money received and spent by the company
  • details of assets owned by the company
  • debts the company owes or is owed
  • stock the company owns at the end of the financial year
  • the stocktakings you used to work out the stock figure
  • all goods bought and sold
  • who you bought and sold them to and from (unless you run a retail business)
  • You must also keep any other financial records, information and calculations you need to complete your Company Tax Return.
Action Deadline
File annual accounts with Companies House 9 months after your company’s financial year ends
File a Company Tax Return 12 months after your company’s financial year ends
Pay Corporation Tax 9 months and 1 day after your company’s financial year ends

 

Example:

If your company registered in 23/09/2014

File annual accounts with Companies House on 30/06/2016

File  Company Tax Return on 30/09/2016

Abbreviated accounts are the balance sheet from your company’s statutory accounts, along with any notes.

The balance sheet must have the name of a director printed on it and must be signed by a director.

 

If your company is small or a micro-entity, you can:

Abbreviated accounts to Companies House created from the statutory accounts – this means less information about your company will be publicly available

What is small or a micro-entity?

Your company will be ‘small’ if it meets 2 of the conditions below:

 

  • its turnover is less than £6.5 million
  • it has less than £3.26 million on its balance sheet
  • it has less than 51 employees

Your company will be a ‘micro-entity’ if it meets 2 of the conditions below:

  • its turnover is less than £632,000
  • it has less than £316,000 on its balance sheet
  • it has less than 11 employees
Statutory accounts

You must send full ‘statutory’ accounts to shareholders and to HMRC with your Company Tax Return.

Statutory accounts must include:

  • a ‘balance sheet’, which shows the value of everything the company owns 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

* You might have to include an auditor’s report – this depends on the size of your company.

*A director must sign the balance sheet and their name must be printed on it.

Your company is ‘dormant’ if it’s had no ‘significant’ transactions in the financial year that you’d normally report. Significant transactions don’t include:

  • filing fees paid to Companies House
  • penalties for late filing of accounts
  • money paid for shares when the company was incorporated
You’ll have to pay penalties if you don’t file your accounts with Companies House or tax return with HM Revenue and Customs (HMRC) by the deadline.

Late accounts for Companies House

Your company will have to pay a penalty charge if you file your accounts after the due date.

Time after the deadline Penalty (for private limited companies)
Up to 1 month £150
1 to 3 months £375
3 to 6 months £750
More than 6 months £1,500
Time after the deadline Penalty
1 day late £100
3 months late Another £100
6 months late HMRC will estimate your company’s tax bill and add a penalty of 10% the unpaid tax
12 months late Another 10% of any unpaid tax
If your returns are late 3 times in a row, the £100 penalties are increased to £500 each.
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