Year End Accounts

year-endWhen you set up your limited company, you automatically get different reporting dates for the first:

You may also have to send (‘file’) two tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

  • start on the day your company was set up (‘incorporated’)
  • end on the ‘accounting reference date’ that Companies House sets for the end of your company’s financial year – this is the last day of the month your company was set up.

The directors of the company also have the opportunity to adjust the financial year end of the company. The director may wish to reduce or extend the first trading period, this may allow for better tax planning.

There are deadlines and rules for filing accounts with Companies House and HMRC. The accounts are used to calculate the company’s Corporation Tax liability.

Year end accounts are required not just for companies but for individuals who operate a trade. These are not formally filed with HMRC but are summarised as part of the individual’s Self Assessment Tax Return.

The format of an individual’s accounts will depend upon certain criteria, and this will outline exactly what information must be included in the accounts and subsequently added to the Self Assessment Tax Return.

The year end of the individual’s accounts is generally set at the end of the financial year, however this is not always the case.

Each trading entity must complete a final set of accounts on cessation of the business, which must be filed with HMRC, but not in all cases with Companies House if the business is incorporated.

For more information about Year End Accounts, contact us.