Compliance

What is Annual Accounts?

Annual accounts are the financial statements your company must file with Companies House each year, showing your financial position.

Current Rate (2025/26)

Free to file, but accountant typically £500-2,000 to prepare

Example

Your accounts show revenue, expenses, profit, and what the company owns (assets) and owes (liabilities).

Key Dates

Due 9 months after your accounting reference date (year end)

How Annual Accounts Works in Practice

Annual accounts are the statutory financial statements that every UK limited company must prepare and file with Companies House. They provide a snapshot of the company's financial performance and position, covering the accounting period (usually 12 months). These are a legal requirement under the Companies Act 2006, regardless of whether the company is trading or dormant.

For most small companies, the accounts consist of a balance sheet, a profit and loss account (or income statement), and notes to the accounts. Micro-entities (very small companies meeting specific size criteria) can file even simpler accounts. Small companies can file abbreviated accounts with Companies House, showing less detail than the full accounts. However, full accounts must still be prepared for shareholders and used as the basis for the Corporation Tax return filed with HMRC.

The accounts must comply with UK Generally Accepted Accounting Practice (UK GAAP), typically FRS 102 for small companies or FRS 105 for micro-entities. This determines how transactions are recorded, how assets are valued, and what disclosures must be made. While the technical standards are your accountant's domain, as a director you are legally responsible for ensuring the accounts give a true and fair view of the company's position.

The deadline for filing with Companies House is 9 months after your accounting reference date (year end) for private companies. For your first accounting period, which can be up to 18 months, the deadline is still 9 months from the year end (or 21 months from incorporation, whichever is earlier). Late filing penalties are automatic and range from £150 to £1,500 depending on how late.

Step by Step

The preparation process typically involves your accountant or accounting software gathering all financial transactions for the period, reconciling bank statements, adjusting for accruals and prepayments, calculating depreciation and capital allowances, and presenting the results in the statutory format.

Once prepared, the accounts go through several steps: the directors review and approve them, at least one director signs the balance sheet, they are filed with Companies House (online through the WebFiling service or software filing), and a copy accompanies the CT600 Corporation Tax return filed with HMRC. The Companies House filing can be abbreviated for small companies, but HMRC always requires full accounts.

If you use an accountant, they typically prepare the accounts, explain the results to you, file with Companies House, and prepare and file the CT600. If you handle your own accounts, you can use software to prepare accounts in the iXBRL format required by HMRC and the format required by Companies House. Free filing software is available from Companies House for simple accounts.

Practical Tips

Gather all receipts, bank statements, and financial records promptly after your year end and provide them to your accountant within a month to allow plenty of time for preparation
Set up a clear year-end timetable with your accountant showing when they need information from you, when draft accounts will be ready for review, and when filing will happen
Take advantage of small company filing exemptions to limit the amount of financial detail that is publicly visible on Companies House
Review draft accounts carefully before signing, as you are personally liable as a director for their accuracy

Common Mistakes to Avoid

Confusing the Companies House filing deadline (9 months) with the HMRC Corporation Tax payment deadline (9 months and 1 day) and the CT600 filing deadline (12 months)
Not providing your accountant with all necessary information on time, which delays preparation and risks missing the filing deadline
Assuming dormant companies do not need to file accounts when they still must file dormant accounts with Companies House each year
Filing the same abbreviated accounts with HMRC as with Companies House when HMRC requires full accounts including the profit and loss statement

Frequently Asked Questions

When do I need to file my annual accounts?

Private limited companies must file annual accounts with Companies House within 9 months of their accounting reference date (year end). For example, if your year end is 31 March 2026, your accounts are due by 31 December 2026. Your first accounts period can be up to 18 months.

What happens if I file accounts late?

Companies House applies automatic penalties: £150 if up to 1 month late, £375 if 1-3 months late, £750 if 3-6 months late, and £1,500 if more than 6 months late. These penalties double if you file late two years in a row. There is no appeal for late filing unless exceptional circumstances apply.

Can I file my own company accounts?

Yes. Small and micro companies can file accounts themselves using free software from Companies House or commercial accounting software. However, many directors use an accountant because the accounts must comply with UK GAAP standards and errors can have legal and tax consequences.

What is the difference between accounts for Companies House and HMRC?

Small companies can file abbreviated accounts with Companies House showing minimal detail. HMRC always requires full accounts including profit and loss as part of the CT600 return. Your accountant prepares full accounts and files the appropriate version with each body.

Are my company accounts public?

Yes. Accounts filed with Companies House are publicly available and anyone can view them for free. Small companies can take advantage of reduced disclosure requirements to limit the amount of detail visible publicly, but the balance sheet is always public.

Source: Companies House Guidance: Filing your company's annual accounts

Related Terms

Balance Sheet

A balance sheet shows what your company owns (assets), what it owes (liabilities), and the difference (equity) at a specific point in time.

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