UK Company Accounts FAQ

A micro-entity is a very small company that meets at least 2 of these 3 criteria: annual turnover not more than 632,000 GBP, balance sheet total not more than 316,000 GBP, and average number of employees not more than 10. Most sole-director limited companies qualify.

FRS 105 is the Financial Reporting Standard applicable to the Micro-entities Regime. It is the simplest UK accounting standard, allowing micro-entities to prepare abbreviated accounts with minimal disclosures.

CT600 is the Corporation Tax return that UK limited companies must file with HMRC. It reports your company's taxable profits and calculates the tax due. This is separate from the annual accounts filed with Companies House.

Annual accounts are filed with Companies House and show your company's financial position (balance sheet). The CT600 is filed with HMRC and calculates your corporation tax liability. Both are required but filed to different bodies.

No, micro-entities do not legally require an accountant or audit. You can prepare and file your own accounts using software or the Companies House WebFiling service. However, professional help may be valuable for complex situations.

Private companies must file annual accounts with Companies House within 9 months of their accounting reference date (financial year end). For example, if your year ends on 31 March, your deadline is 31 December.

The CT600 must be filed with HMRC within 12 months of your accounting period end. However, corporation tax payment is due earlier - 9 months and 1 day after your accounting period ends.

No, Companies House does not grant extensions to filing deadlines. If you need more time to prepare your accounts, you can change your accounting reference date, but there are restrictions on how often and how far you can change it.

A Confirmation Statement (previously Annual Return) confirms your company details are correct. It must be filed with Companies House at least once every 12 months and costs 13 GBP online or 40 GBP on paper.

Corporation tax payment is due 9 months and 1 day after your accounting period ends. This is BEFORE your CT600 filing deadline (12 months). You should estimate and pay on time to avoid interest charges.

Companies House penalties range from 150 GBP (up to 1 month late) to 1,500 GBP (more than 6 months late). These penalties double if you file late two years in a row. Penalties are automatic and apply regardless of reason.

Yes, but appeals are rarely successful. Companies House only accepts appeals based on exceptional circumstances like serious illness, natural disaster, or postal delays with proof. Common excuses like accountant delays are not accepted.

Your company may be struck off the Companies House register. Directors can be prosecuted and fined. The company will also appear as having overdue accounts on public records, damaging its reputation.

Yes, HMRC charges a 100 GBP penalty if your CT600 is 1 day late, another 100 GBP if 3 months late, plus 10% of unpaid tax if 6 months late, and another 10% if 12 months late. Interest also accrues on unpaid tax.

Yes, dormant companies must still file annual accounts with Companies House and a Confirmation Statement. However, they can file simplified dormant accounts which contain minimal information.

A company is dormant for Companies House if it has no significant accounting transactions. However, even small transactions like bank fees mean it is NOT dormant for Companies House purposes, though it may still be dormant for HMRC.

For Companies House, no - bank fees are significant accounting transactions, so you need to file micro-entity accounts, not dormant accounts. For HMRC purposes, you may still be dormant if you are not trading.

Tell HMRC your company is dormant using form CT600 (tick the dormant box) or by writing to them. If accepted, you will not need to file CT600s while dormant. You must tell HMRC within 3 months if you start trading again.

From April 2023, the main rate is 25% for profits over 250,000 GBP. The small profits rate is 19% for profits under 50,000 GBP. Marginal relief applies for profits between 50,000 and 250,000 GBP.

Turnover is your total sales or revenue before any deductions. Profit is what remains after deducting all business expenses. Corporation tax is calculated on taxable profit, not turnover.

Yes, legitimate business expenses can be deducted from your turnover to calculate taxable profit. This includes office costs, travel, professional services, and capital allowances for equipment.

Capital allowances let you deduct the cost of business assets (equipment, vehicles, machinery) from your profits before tax. The Annual Investment Allowance allows 100% deduction on qualifying assets up to 1 million GBP per year.

Yes, you can file your accounts online from anywhere in the world. Companies House WebFiling and HMRC online services are accessible globally. You will need your company authentication code and Government Gateway credentials.

Yes, every UK company must have a registered office address in the UK where official mail can be delivered. This address is public. You can use a registered office service if you do not have a UK address.