Are your annual accounts due soon?

Every company, whether trading or dormant, must prepare annual accounts for Companies House. Accounts are financial statements that report on a company’s performance and activities over a specified period – usually 12 months. The deadline for filing your private company’s annual accounts with Companies House is 9 months after the end of your financial year.

Whether your filing deadline is soon or many months away, you should prepare your annual accounts as soon as possible after your year-end. Don’t leave it until the last minute, especially if your company finances are complex or you intend to use an accountant.

This article discusses the importance of delivering your annual accounts on time, the potential consequences of late filing, and where to find details of your financial year and filing deadline.

The importance of filing annual accounts on time

As a company director, you must know all key filing duties and deadlines relating to your business. Whether you appoint other people to manage your company’s accounting and administrative obligations, you are ultimately responsible for ensuring that all statutory obligations are carried out properly and on time.

Filing annual accounts is essential for all limited companies, but it is often time-consuming and relies on numerous financial records. Given the potential complexity of the task, using an accountant is generally recommended, although optional.

You must deliver your first set of accounts to Companies House 21 months after incorporation. Thereafter, the filing deadline is 9 months following the end of your company’s financial year.

The last day of your financial year is called the ‘accounting reference date’ (ARD) or ‘year end’. So, you have 9 months from your ARD to prepare and submit your annual accounts. These dates will remain the same yearly unless you change your ARD by shortening or lengthening your company’s financial year.

Ideally, you should file annual accounts with Companies House as soon as possible after the end of your financial year. By doing so, you’ll avoid the risk of late filing penalties while also giving yourself ample time to plan for any tax bills. Moreover, your company’s financial information will be more up-to-date and relevant to your decision-making in the next financial year.

Where to find your accounting reference date (ARD)

Companies House will provide you with an accounting reference date and accounts filing deadline shortly after incorporation. If you’re unsure of these dates, you should find out now and make a note in your diary. You can obtain this information online by following these steps:

1. Visit the Companies House search service
2. Enter your company name in the search bar
3. Select your company name from the list of results and scroll down to ‘Accounts’

You will see when your next accounts should be ‘made up to’ (your accounting reference date) and when they are ‘due by’ (your filing deadline).

Sign up for email reminders

To avoid missing your accounts filing deadline, you should register for email reminders from Companies House or another third party to help you keep track.

To sign up for Companies House email reminders, follow these steps:

1. Sign in to (or register for) the Companies House online filing service
2. Select ‘Activate e-reminders’ from your company overview screen
3. Select ‘Add an email address’
4. Provide your email address (you can add up to four different addresses)
5. Follow the link in the email from Companies House to confirm your email address

When you’ve successfully signed up, you’ll receive a confirmation email from Companies House. The service is free to use, and it will also send a reminder when your annual confirmation statement is due.

What happens if I file accounts late?

Failing to file accounts on time can lead to harsh consequences for you and your company, including financial penalties, prosecution, company strike-off, and director disqualification.

If you submit your annual accounts after the deadline, Companies House will impose an automatic late filing penalty of £150. The following additional penalties will apply if your accounts remain overdue:

• £375 – between 1 and 3 months late
• £750 – between 3 and 6 months late
• £1,500 – more than 6 months late

These penalties will double if you submit late accounts two years in a row. Failing to pay a penalty can also result in enforcement proceedings. You can appeal late filing penalties, which are generally waived only in exceptional circumstances.

• UK companies face tougher non-compliance penalties
• 13 changes to UK company law – from 4 March 2024 
• UK business laws you need to know

If you don’t send accounts at all, Companies House may assume that your company is no longer required and take steps to strike it off the register. It is also a criminal offence for which directors can be personally fined in the criminal courts.

If your accounts are overdue, you should immediately contact Companies House to explain that you will submit them. You must then ensure they are prepared and submitted as soon as possible.

Can I apply for an annual accounts extension?

Generally, you must adhere to the accounts filing deadline set by Companies House. However, in very limited circumstances, you can apply for an extension if an unplanned event prevents you from filing your annual accounts on time.

Events outside your control that are acceptable are unexpected illnesses, fires, or floods that destroy your financial records a few days before your accounts are due.

You must apply to Companies House for the extension before your normal filing deadline. If you do not, you’ll incur a late filing penalty. You’re unlikely to be eligible if you have already extended your accounts filing deadline for the same period.

You can apply for more time to file accounts online. To do so, you will need to sign in to (or register for) your Companies House account and provide the following details:

• Your company registration number
• A full explanation of why you need an extension
• Documents that may support your application (optional)

Completing this online application usually takes around 15 minutes. Companies House will then review the request and email you with its decision. If you’re granted an extension and you deliver your accounts before the new deadline, you won’t incur a late filing penalty.

How to submit your annual accounts to Companies House

Most companies submit their annual accounts electronically using software rather than online or by post. This method is preferred because it’s quick, efficient, and reliable. 

It’s also worth noting that Companies House is moving towards software-only accounts filing, so the online and paper options will be removed in the near future. 

If you use an accountant, they will normally submit your annual accounts to Companies House on your behalf using software or online filing. 

Filing accounts using software

The software filing method supports the submission of most kinds of accounts. However, you must ensure that your chosen software has the right features for your particular type of accounts. 

Before you can send annual accounts electronically, you must apply to Companies House for a presenter account to file using software. 

To do so, you’ll need to sign in to (or create) your Companies House account. It only takes around 5 minutes to apply.

Once you’ve done this, you can either:

• Get an accounting software package from a provider authorised by Companies House and HMRC
• Develop your own software – check the Companies House technical specifications

Companies House provides a list of tested software and the types of accounts you can use with each one.

You can also use accounting software to file your Companies House accounts and HMRC Company Tax Return at the same time (if they relate to the same accounting period).

Filing accounts online 

Companies House online services are suitable for filing the following types of annual accounts:

• Micro-entity accounts
• Small audit-exempt abbreviated accounts
• Dormant company accounts for a company that has never traded
• Full accounts for companies that meet certain criteria

They have built-in checks to ensure that all of the required information is provided before submission, greatly reducing the risk of errors and rejection.

To use these services, you will need both of the following:

• The email address and password you used when signing up for Companies House service or WebFiling
• The authentication code you received from Companies House

If you’re filing online for the first time, you can register for a Companies House account beforehand. You’ll need to provide an email address and create a password.

Once you’ve registered, Companies House will send an authentication code to your registered office. This should arrive within 5 days. You can then upload and file your accounts online.

If you have a private limited company that qualifies for audit exemption, you can use the Companies House-HMRC joint filing service to file your accounts and Company Tax Return at the same time.

Sending accounts on paper

Very few companies send paper accounts by post. Processing paper documents takes much longer, and there is a greater risk of error, rejection, and delay.

If you need to file on paper, you must include the company name and company registration number on at least one of the component parts of the accounts (e.g. the balance sheet). The balance sheet must contain the name and signature of a director. 

All companies sending paper accounts are required to post them to the Companies House Cardiff office.

Sending annual accounts for a dormant company

The requirement to file annual accounts with Companies House also applies to dormant companies. Your company is dormant, according to Companies House, if it’s not trading and has no ‘significant accounting transactions’ during its financial year. 

Significant transactions are those required by Section 386 of the Companies Act 2006 to be entered in your company’s accounting records, such as trading income and business expenses. 

However, the following transactions are not classed as significant:

• Filing fees that you pay to Companies House 
• Penalties for late filing of annual accounts
• The money the company received for shares when it was incorporated 

If your dormant company also qualifies as ‘small’, you can file dormant accounts rather than full statutory accounts with Companies House. 

Dormant accounts are abridged (simpler) accounts consisting of a balance sheet, notes to the balance sheet, and any previous year’s figures for comparison. You don’t need to include a profit and loss account, a director’s report, or an auditor’s report with dormant accounts. 

At 1st Formations, we offer a Dormant Company Accounts Service for £49.99 +VAT. This service, which is suitable for companies with dormant status, includes:

• Completion and filing of form ‘AA02 dormant company accounts’ by one of our in-house experts
• Fast turnaround – ideal if your filing deadline is fast-approaching
• Confirmation of acceptance of accounts by Companies House

Our Dormant Company Accounts Service is also free as part of our Full Company Secretary Service. You don’t need to form a company with us to use our services.

Thanks for reading

We hope you’ve found this post useful. If your company is dormant and you’d like to speak to us about our Dormant Company Accounts Service, please contact our London-based team.

Explore the 1st Formations Blog for more guidance on limited company filing and reporting requirements.