Amidst the chaos of running a business, it’s possible to miss the deadlines for many obligations, including filing your annual accounts, also known as statutory accounts.
Statutory accounts help companies determine their financial health, including achievements and efficiencies, potential financial challenges, and weaknesses. Our chartered accountant firm has been helping companies with their accounts and taxes for many years. Using our experience and knowledge, we have prepared a guide so you can file your statutory accounts on time, no matter how busy things get.
Tip 1: The Earlier You Start, the Better
Companies in the UK have to submit their statutory accounts every financial year. Instead of waiting for the last months, start preparing your accounts early because it can get overwhelming, increasing the chances of errors.
After preparing the accounts, you’ll need to submit them to Companies House, shareholders, and HMRC, along with the tax return. In addition, you’ll also submit accounts’ copies to company members, and the Companies House makes these accounts public. All this requires time and effort, so starting early can make things smoother.
Tip 2: Prepare and Follow a Checklist
Having a checklist can be quite helpful for keeping everything sorted. Here are a few things to add to your checklist:
- Have you claimed all legal and financial expenses? Claiming these expenses will reduce your Corporation Tax.
- Have you paid all the overdue invoices? Paying all the overdue invoices before financial years keeps your statutory accounts accurate.
- Have you completed all your paperwork? Make sure you’ve receipts and records to back up your accounts.
Tip 3: Submit Your Accounts Earlier Than the Due Date
Late submission of statutory accounts has monetary penalties. For example, £150 if the submission is less than one month late and £1500 if the submission is six months late. Also, the penalties will be doubled if you submit late for two consecutive years.
Early submission will reduce the risks of paying monetary penalties, and you also have enough time to resubmit them if your case gets rejected.
Tip 4: Make the Most of the Government’s Online Services
You can also file online to make things quicker and easier. The online platforms check all your information and inform you if anything is missing before the final submission. This saves you from a lot of hassle involved in manual submission. These platforms also send automated emails when your accounts are received and accepted.
Tip 5: Hire an Accountant
With so many things on your plate, it’s natural to make errors even if you’re extremely careful. Having a dedicated accountant to prepare and file your statutory accounts can make things much easier.
IBISS & CO. accountants will help you in the following ways:
- Formatting and preparing your accounts
- Ensuring these accounts have all the required and accurate information
- Ensuring you meet the legal requirements
- Getting things done on time to avoid any penalty or late fees
Besides that, we also offer corporation tax specialists, personal tax advisors, and self-assessment & tax returns consulting to companies and self-employed individuals in London. Reach out to us for more details.