Who Needs to File Annual Accounts?
Limited Companies (Ltd) registered with Companies House.
Public Limited Companies (PLC) and Large Corporations.
Small Businesses and Dormant Companies, with some exemptions or simplified requirements.
Limited Liability Partnerships (LLPs) must also file annual accounts.
Sole traders and partnerships (unless an LLP) don’t file annual accounts with Companies House but must still report financial information for tax purposes.
What’s Included in Annual Accounts?
Annual accounts usually consist of:
Balance Sheet – A snapshot of the company’s financial position, showing assets, liabilities, and equity.
Profit & Loss Statement (P&L) – Details revenue, expenses, and profit or loss over the year.
Cash Flow Statement – Tracks how money moves in and out of the business.
Notes to the Accounts – Additional information explaining financial figures.
Director’s Report (for large companies) – A statement from directors on company performance.
Auditor’s Report (if required) – External verification of the company’s finances.
Small businesses may qualify for simplified or “micro-entity” accounts, which require fewer details.
Why Are Annual Accounts Important?
✅ Legal Requirement – Failure to file can lead to fines or even company dissolution.
✅ Financial Transparency – Shows investors, creditors, and stakeholders the company’s health.
✅ Tax Compliance – Helps HMRC assess corporation tax liability.
✅ Access to Credit & Investment – Lenders and investors often review accounts before funding.
Common Mistakes to Avoid
Late Filing – Leads to penalties and legal action
Inaccurate Figures – Errors can result in tax investigations
Missing Supporting Documents – Essential for audits or financial verification
Ignoring Exemptions – Some small businesses qualify for reduced reporting