By now, as a business owner, you will be well aware that there are multiple legal forms which need to be submitted to HMRC and Companies House in relation to your company, but are you aware of their individual values and requirements? Today, we are here to assist you with statutory accounts.
What are statutory accounts?
Statutory accounts, otherwise referred to as annual accounts, are the collation of certain figures and company information which allow your business’ shareholders to witness the position of your business, as well as keeping Companies House updated with the correct information.
What businesses are required to submit statutory accounts?
Any limited companies described as Ltd or Limited, limited liability partnerships stated as LLP’s, or public limited companies shown as Plc’s are required to submit statutory accounts to Companies House or else will incur a fine.
What information belongs in a statutory account?
Statutory accounts must include a balance sheet, a profit and loss account, a cashflow statement, the director’s report and any adjoining notes.
If you run a small business, a full set of statutory accounts are not required for filing at Companies House. In this instance, you are able to file an abridged version, consisting of a detailed summary and discarding a profit and loss account. However, a full version will still need to be provided for the shareholders, as well as HMRC, as a part of your annual tax return.
When do statutory accounts need to be filed with Companies House?
Your first statutory accounts need to be filed 21 months after you registered your business with Companies House. Following on from your first submission, you are then required to consistently file nine months after your company’s financial year end. Upon failure to submit your accounts, a fine of up to £1,500 could be incurred. This total cost is subject to change, dependant on how late your submission is.
If you require further information on statutory accounts, how to file at Companies House, or for any general business advice, get in touch with a member of our Cain and Beer team by calling 020 3633 1340 or drop us an email at email@example.com where we will be happy to help you and your business.