Business

Why Do Companies File Accounts?

Why Do Companies File Accounts?

The preparation of annual financial statements for a public limited company is required by law, but can seem a daunting task. The annual presentation of company accounts is crucial to keeping a dormant business running, as HMRC is informed that corporation tax is due. If the company’s accounts are issued which do not match the settlement period required by HMRC, or if a second set of accounts must be issued for them, the company should split the revenue from the HMRC tax period into the period of the company’s house. If a company only lasts part of the booking period, it must complete a corporate tax return. 

Inform Direct uses the information available from Companies House to suggest how the financial statements should be presented, as these are dormant company accounts filed for the company. If a company does not file the “dormant corporate accounts” before it is registered with Inform Direct, we will use the information available to us in the form of annual corporate tax returns and financial statements to make suggestions as to how these accounts should be available. Inform Direct will also use this information, along with the information available to companies registered with us, to make suggestions on how these accountants should present themselves. 

We understand that even if you appoint an accountant, the director of the company is responsible for the correct accounting. Accountants are experts in corporate finance, and if they hire a good accountant they can take a lot of stress out of accounting at HMRC and Companies House. If you are a company that has to file its annual corporate tax returns and financial statements, accountants can help. 

As a director, you are responsible for ensuring that your accounts are accurate, that you file truthful and fair financial statements with Companies House and HMRC, that you prepare your company’s tax liabilities, that you file your corporate tax returns and that you complete your own self-assessment tax return. Before you file your company’s year – until the end of the year – make sure you keep a record of everything. This can mean you get accounts and other income from your suppliers. 

An annual financial statement should normally contain a balance sheet signed by the Director, an audit report signed by an external auditor, a report by the Director and a strategic report, as well as reports by the Director and the Company Secretary, their strategic reports and comments on the annual financial statements. You can only choose to file your balance sheets with Companies House, but you can also include a reduced version of your financial statements, such as an annual report or annual statement if you wish. 

This option is available to smaller companies, but they must produce a shortened invoice under the Companies Act 2000 and the Income Tax Act 2002 before submitting it to Companies House. HMRC also requires you to file an account with them every 12 months, but you can submit your account in the form of an annual report, annual statement, policy report or annual statement. In addition to the accounts submitted to the companies, there are accounts for people under the age of 600. You can use these accounts, which allow account details to be transmitted to both the House of the Society and the Tax Office, as well as to the Ministry of Economy, Energy and Industrial Strategy. 

For public companies, the deadline for filing an account with Companies House has been extended from nine months to 12 months. This means that the account must be filed by the new due date, or the company will receive a penalty for late filing. Companies whose accounts have been delayed since Covid 19 was introduced can now apply for a 3-month extension to submit the accounts. If your business is affected by Covids 19, you can’t file your account application until after the end of the year, but if the companies agree to extend the deadline, you can. 

If your company’s booking date is the last day of the month, you can still request an extension of up to 12 months from the filing date, but you still have to submit it by January 20 and still behave. 

If this is confusing, don’t worry, your accountant will do a lot of the administration for you, including filing your annual accounts with Companies House and HMRC, and helping you monitor the deadlines. If you want to keep your company accounts up to date or need advice on filleting or cutting dormant company accounts, you can contact your Berkshire accountant. Your accountants will do a lot of administration in your account, including the process of filing the annual accounts with HMRC and handling them themselves. Bebe is an accounting software product that can be used to create and file your annual financial statements. And if you want to convert your files to iXBRL format before you file them with HMRA, we are at your disposal. 

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