Business owners in the UK are certainly familiar with annual accounts, a mandatory requirement for companies in the UK. 

If you are planning to set up a company soon, in addition to considering the registration process, you will also need to familiarise yourself with the mandatory submission of annual accounts. 

In this issue, we will focus on introducing annual accounts and the necessary preparation materials. We will also provide information on submission deadlines and other important considerations. 

What are Annual Accounts? 

Annual accounts, also known as annual financial statements, are financial reports that companies must prepare and submit each year to Companies House and HMRC. The annual accounts submitted by companies should include the following sections:

  • Profit and Loss Account: Shows the company’s income, expenses, and profits during the reporting period. 
  • Balance Sheet: Lists the company’s assets, liabilities, and shareholders’ equity. 
  • Cash Flow Statement: Displays the company’s cash inflows and outflows during the reporting period. 
  • Notes to the Accounts: Provides detailed explanations and additional information on the financial statements. 
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Specific Materials Required 

  

Preparing annual accounts involves collecting and organising a range of financial and non-financial information. Here are some common materials needed: 

Income Records: 

– Sales invoices 

– Bank statements 

– Records of other income sources 

  

Expense Records: 

– Supplier invoices 

– Payslips 

– Rent and utility bills 

– Other operating expenses 

 

  

 

Assets and Liabilities: 

– Fixed asset register and depreciation records 

– Inventory records 

– Accounts receivable and accounts payable details 

– Bank loan and other debt records 

  

Tax Records: 

VAT returns 

– Corporation tax records 

  

Company Governance Documents: 

– Articles of association 

– Minutes of board meetings 

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Submission Frequency and Deadlines 

SMEs in the UK need to follow the following timetable for submitting annual accounts: 

Companies House: 

The deadline for submitting annual accounts is usually 9 months after the end of the company’s financial year. 

HMRC: 

The deadline for submitting the corporation tax return and annual accounts together is 12 months after the end of the company’s financial year. 

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