Limited Company Accounts

Company Accounts

We offer professional Limited Company Accounts services tailored to comply with Companies House and HMRC regulations. Our team of experts ensures that your financial records are accurately prepared and fully compliant, giving you peace of mind.

Limited company accounts can be complex and require specialised knowledge to navigate effectively, including director loan accountscapital allowances, accounting for assets and liabilities accurately and managing bad debts. It’s essential to accurately account for company expenditures paid from personal bank accounts to ensure that you claim every tax advantage you’re entitled to while complying with legal requirements. Failure to prepare accounts in compliance with these regulations can result in fines and penalties.

Every business has unique needs, so we customise our services to meet those needs. Our expertise extends to providing strategic advice on maximising capital allowances, using loss relief, and accurately recording pre-trading expenditures. We take extra care with expenses paid from personal funds, documenting and claiming them accurately to help you minimise your taxes.

Frequently Asked Questions

Do you need an accountant for a limited company accounts?
You don't need an accountant if you are well-versed in HMRC and Companies House regulations. However, if you're unfamiliar with these laws, hiring a professional accountant is wise to ensure compliance and avoid any potential penalties.

To prepare accounts for a limited company, you typically need to gather and organise the following records:

  1. Sales and Income Records: Detailed information about the sales and income during the financial year, including invoices issued and income received.

  2. Purchase and Expense Records: Documentation of all business expenses, such as receipts, bills, and bank statements showing payments.

  3. Bank Statements: Copies of all bank, credit card, and loan accounts related to the business to verify transactions recorded in your accounts.

  4. Assets and Liabilities: Details of business assets (e.g., equipment, property) and liabilities (e.g., loans, outstanding invoices).

  5. Inventory Records: If applicable, an inventory list at the start and end of your financial year to calculate the cost of goods sold and the stock value.

  6. Payroll Records: Information on salaries, wages, bonuses, and deductions if the company employs staff.

  7. VAT Records: If registered for VAT, detailed records of VAT charged and paid, including VAT returns.

  8. Previous Year’s Accounts: Last year’s accounts for reference and comparison.

  9. Capital Expenditure: Records of any capital expenditure on assets used in the business over several years.

  10. Loan and Finance Agreements: Documentation relating to company financing or loans.

  11. Dividends: Records of dividends declared and paid during the year, including dividend vouchers.

Organising these records systematically is crucial for preparing accurate accounts and financial statements, such as the Profit and Loss Account and the Balance Sheet, which are required for tax filing and compliance with statutory obligations.

If you are running a limited company, opening a distinct business bank account is mandatory. This is because a limited company is a separate legal entity from its owners. It is vital to keep your finances separate to comply with tax, legal, and financial reporting requirements. Maintaining separate accounts ensures that accounting and tax records are clear and straightforward, simplifies financial management, and helps keep the corporate veil, which is essential for limiting personal liability.

For a limited company, you can claim a range of expenses, including:

  • Office Costs: This includes expenses for stationery, printing, and office supplies. Software subscriptions that are essential for your business operations are also allowable expenses.

  • Business Premises Costs: If your company operates from a physical location, you can claim expenses related to the premises. This includes rent, utility bills (water, gas, electricity), property insurance, and security. However, if you’re working from home, you can only claim a portion of these costs based on the actual use of your home for business purposes.

  • Travel Expenses: Costs incurred for business travel are allowable. This includes public transport fares, parking fees, tolls, hotel accommodation if you need to stay overnight for business purposes, and meals during business trips. Mileage allowances can be claimed for business travel using personal vehicles, with rates set by HMRC.

  • Staff Costs: Salaries, wages, bonuses and pensions are deductible. You can also include the cost of subcontractors and freelancers if they are directly engaged in your business operations.

  • Marketing and Advertising: Expenses incurred on promoting your business, such as advertising in various media, website maintenance and hosting, and production of promotional materials, can be claimed. This also includes digital advertising and SEO services.

  • Legal and Financial Costs: Professional fees, including accounting, legal services, and business consultancy, are allowable. This category also covers bank charges, interest on loans and overdrafts (subject to certain conditions), and insurance policies (professional indemnity, public liability).

  • Costs of Goods and Raw Materials: If your business sells products, you can claim the cost of goods for resale, raw materials used in manufacturing, and direct costs related to production.

  • Equipment and Machinery: Larger items like machinery or company vehicles can be claimed through capital allowances. This allows you to write off the cost of these assets over several years against your business profits.

  • Training Costs: Training courses aimed at improving the skills and knowledge of your staff for the business can be claimed. However, these courses must directly relate to the business’s current operations.

Keeping accurate and detailed records of all expenses, including receipts and invoices, to support your claims is crucial. Additionally, it’s important to distinguish between capital expenditures and allowable business expenses, as the rules for tax relief differ.

Only expenses that are wholly and exclusively for the business are allowable. Personal expenses cannot be claimed, and any private use of assets needs to be accounted for and separated.

To file company accounts in the UK, you must submit them to Companies House, the official government body responsible for company registration and documentation. Companies can file their accounts online using the WebFiling service or software compatible with Companies House's filing requirements.
A Director's Loan Account (DLA) records all transactions between a company and its directors, excluding salary, dividends, or expense repayments. It helps to track money borrowed from or lent to the company by its directors. If a director takes out more money than they have put in or received through their remuneration, the account is considered "overdrawn." Depending on the circumstances, an overdrawn DLA can have tax implications for the director and the company. This includes potential benefit-in-kind charges if the loan is not paid back within a specified time frame. Maintaining this account accurately for tax reporting and compliance is essential.
In the UK, the directors of a company are primarily responsible for its accounts. They are legally obligated to prepare and maintain accurate financial records that reflect the company's financial position and performance. The directors are responsible for ensuring that the accounts comply with all relevant legal and regulatory requirements, including those set out in the Companies Act 2006. The accounts must be filed with Companies House and HMRC and shared with the shareholders annually. Although directors may delegate the preparation of accounts to internal finance teams or external accountants, the final responsibility remains with them.

The deadline to file company accounts in the UK is generally nine months after the end of the company’s financial year. For example, if a company’s financial year ends on 31st March 2022, the deadline to file its accounts would be by 31st December 2022.

If you miss the deadline to submit your company accounts in the UK, you will face automatic penalties from Companies House. The amount of the penalty depends on how late the accounts are filed. The fines increase the longer the delay, starting from £150 for being up to one month late, and can increase up to £1,500 if the accounts are filed more than six months late. Additionally, continued failure to file can result in further legal action, including the possibility of the company being struck off the register.