All UK companies are legally required to file annual accounts at Companies House. While filing your accounts might seem daunting, with online filing, it is now a much simpler process. In this guide, we will follow a step-by-step process and walk you through filing your annual accounts online so that you are within the law and do not need to pay unnecessary fines.
What are Annual Accounts?
Annual accounts, or financial statements, provide an overview of a company’s financial position and performance during a period of 12 months. Annual accounts typically include a balance sheet, income statement, and cash flow statement. Annual accounts are very helpful in determining how your business is performing and are a significant component of your company’s financial control.
For many companies, it may seem like a complex process to create annual accounts. But with right equipment and data, the task is quite easy. These accounts may not be tax-oriented, but an essential measure to evaluate the situation in a business firm’s overall health and viability, as from a shareholders’, stakeholders’ and more viewpoint.
Who is Required to File Annual Accounts
In the UK, even dormant limited companies have to file company accounts with Companies House. Whether you’re a startup, an existing company, or a dormant one, filing timely accounts is a legal requirement. Failing to do so will incur charges for being late or fines and, in worst-case scenarios, even wind up the company.
Understanding whether your business qualifies for any exemptions or simplified filings (such as the micro-entity option) is important before beginning the process. Depending on the size of your company, the level of detail required in your accounts may vary.
How to Submit Annual Accounts Online: Step-by-Step
- Prepare Your Financial Statements: Begin by preparing your firm’s financial statements. These must comprise your balance sheet, profit and loss account, and notes detailing how the figures have been arrived at. If your firm is large, it might also comprise an auditor’s report.
- Create or Access Your Companies House Account: Register for an online account with Companies House if you don’t already have one. You’ll need to log in to submit your documents. The account also provides access to other required services, such as submitting your annual confirmation statement.
- Submit Accounts Online: When ready, sign into your Companies House account and visit the online filing platform. You’ll be instructed on how to upload your annual accounts. You will be required to verify your submission prior to posting.
- Pay Any Fees (if applicable): It’s generally free to file annual accounts. However, there may be a fee for submitting a particular form of account or document. Make sure you pay any fees on filing.
- Confirmation of Filing: You will receive confirmation from Companies House when you submit your accounts. Retain the confirmation safe as proof of filing.
Conclusion
Submission of annual accounts online is convenient and effective if you wish to stay compliant with UK regulations. Preparing ahead and submitting online, you get to witness your business staying compliant within the time frame specified and avoiding unnecessary fines.
