Running a limited company in the United Kingdom comes with a set of duties and deadlines as stipulated by Companies House and HMRC. In this blog, we will take a look at what those responsibilities and deadlines are.
Limited Company Financial Year End
The year end of a limited company is set by Companies House when the company was formed. The year end date will be the last day of the month in which the company was set up.
For example, if a company was incorporated on 3rd October 2021 then the year end will be 31st October and the first accounts will be prepared to 31st October 2022.
Each financial year you must complete the reporting requirements as set by Companies House and HMRC.
Limited Company Annual Accounts
Based on the company’s financial year, your annual accounts provide information about the company’s performance. A limited company’s annual accounts include information about its income, profit, assets, and liabilities.
It is essential for annual accounts to be submitted to HMRC and Companies House every year without fail.
Limited Company Corporation Tax Return
Limited companies must submit a company tax return (or CT600) to HMRC along with the annual accounts. This return is based on the information within the accounts and tells HMRC how much Corporation Tax the company owes.
Confirmation Statement
Companies House uses confirmation statements to ensure that the information they have about a limited company, its shareholders and directors is accurate.
Other important returns for limited companies in the UK
A limited company may need to complete further returns if it is VAT registered, or if the company employs staff.
Companies House deadlines
There are two main deadlines set by Companies House in the UK which all limited companies need to adhere to.
Annual Accounts
The absolute deadline for a limited company’s annual accounts to be submitted to Companies House is no later than 9 months after the company’s year end, but this can be a bit earlier in the first year.
What happens if I submit my annual accounts late?
The penalty charge for late submissions of annual accounts is currently £150, however, the penalty will increase to:
- £375 if the submission is more than a month late
- £750 if the submission is more than 3 months
- £1,500 if the submission of annual accounts is more than 6 months late
Confirmation Statement
A limited company’s confirmation statement should be filed with Companies House every year. It is compulsory to file your confirmation statement within 14 days of your review period ending otherwise you are at risk of being removed from the register or prosecuted.
Penalty charge for late filing of Confirmation Statement
Although there is no penalty fee for late submission of a company’s Confirmation Statement, there is the risk of the company being struck off the register if it is not filed.
Learn more about Confirmation Statements here.
HMRC deadlines for limited companies in the UK
Corporation Tax Return
A limited company’s Corporation Tax Return is due 12 months after the company’s year end.
What happens if I submit my corporation tax return late?
The penalty for late submission of a limited company’s corporation tax return is £100, and increased to:
- £200 if the return is submitted later than 3 months
- HMRC will charge an extra 10% of the tax due if the return is submitted more than 6 months late
- and an additional 10% if it is more than 12 months late.
How to avoid penalties from Companies House and HMRC
We would highly advise appointing an experienced and qualified accountant to look after your business and ensure that everything is submitted accurately and on time.
If you need more advice on the important deadlines and obligations for limited companies in the UK, feel free to reach out to Monx anytime.
Email us directly at hello@monx.team
