A quick guide to year end accounts

We understand how daunting year end accounts can be, so take a breath, make some tea and use our quick guide to help you understand what is required. If this is your first time dealing with year end accounts or you’re unsure of what to do, at Millhouses Accountancy we offer year end accounts preparation to help you get everything you need in order. 

In accountancy, year end is slang term for when the financial period of your company ends. Limited companies need to submit documents to HMRC at the year end.

OVERVIEW

Our quick guide gives you a summary of what needs to be filed and our top tips will prepare you for your year end report. Get moving in the right direction with our guide, but if you plan on going it alone you can find a detailed guideline on the gov.uk website. A good accountant will be able to assist you throughout the process so you can make year end a breeze.

HMRC REQUIRED DOCUMENTS

The following documents need to be filed with the HMRC:

• Company Tax Return
  • CT600 – this document contains details of your company’s income, minus tax allowances and expenses. The amount left (your profits) will be used to calculate how much Corporation Tax is owed by your company.
• Annual Accounts

There are three documents that make up the Annual Accounts, these are:

• Income Statement – this document is basically your profit & loss account, showing the amount you made within that period.
• Statement of Financial Position – the value of a business established using assets, liabilities, capital and reserves.
• Footnotes – this is additional information regarding advances, credit, financial commitments, guarantees and contingencies.

COMPANIES HOUSE REQUIRED DOCUMENTS

You need to submit the Statement of Financial Position and the Footnotes to the Companies House. These two documents will be made publicly accessible on the Companies House website.

TOP PREPARATION TIPS

In order to make preparations and submissions for year end even easier, follow our top tips below:

Organise your business expenses

• The money you claim as business expenses, is money that is taken away from your company profits which means less Corporation Tax to pay. If you have bought items “wholly and exclusively” for business use then you can claim it as business expense. If you’re not sure what can be claimed for, our accountants can help clear up any confusion or potential errors in claims.

Accuracy is key

• Your year end report needs to be as accurate as possible, that means you need to make sure you get all those old overdue invoices sorted and ensure your finances are properly and accurately recorded.

Have records of everything

• Records are essential to back your accounts. They should include everything from supplier statements, bank statements and income records.

DEADLINES

HMRC: Your Company Tax Return must be filed within 12 months after the end of the accounting period it covers. The due Corporation Tax must be paid to HMRC within the 9 months and one day following this.

Companies House: Your documents must be filed within the first nine months following your year end (or if this is your first return, within 21 months of registration).

These are the basics that will guide you through the year end reports but we’d recommend contacting an accountant for further assistance. If you’re looking for a Sheffield accountant to assist with year end accounts preparation, call Millhouses Accountancy today on 0114 345 0960.

Call us today for more information on 0114 345 0960