Companies in England must keep accounts and file financial statements. A company with a turnover of up to GBP 350,000 may keep its own accounts.

Financial statements must be filed with the relevant authorities within 10 days of the end of the accounting period. Once a company’s annual turnover exceeds GBP 350,000, it must be audited and its accounts may be prepared only by licensed tax advisers.

Requirements for the Annual Accounts

All British companies must file annual accounts prepared in the statutory format with Companies House and the tax authority.

The annual accounts must include:

1) a directors’ report signed by a director or the company secretary

2) a balance sheet signed by a director

3) a profit and loss account (or an income and expenditure account if the company does not trade for profit)

4) notes to the accounts

Bookkeeping and Annual Accounts for an English Company

Forming a limited company in England is quick, but owning one brings ongoing responsibilities. Every company must keep adequate accounting records and prepare annual accounts, regardless of whether it has traded much in its first year. Getting the routine right from the start makes year-end reporting far less stressful.

Keeping Proper Records

Directors are responsible for making sure the company’s records show its financial position with reasonable accuracy. In practice this means recording all sales and purchases, keeping invoices and receipts, reconciling bank accounts and tracking what the company owns and owes. Records should be kept for a number of years, so it is worth setting up a clear and secure system, ideally using accounting software.

Two Separate Authorities

An English company reports to two different bodies. Companies House maintains the public register and receives the statutory annual accounts and the company’s regular confirmation of its registered details. HM Revenue and Customs deals with tax and receives the company tax return together with supporting computations. Each has its own deadlines and penalties for late filing, so it is important not to confuse the two.

Typical Year-Round Tasks

  • Recording income and expenses and reconciling the bank account
  • Running payroll, if the company has employees or pays directors a salary
  • Preparing VAT returns, where the company is VAT registered
  • Preparing annual accounts in the required format
  • Calculating and filing the corporation tax return
  • Keeping the company’s details at Companies House up to date

Small Companies and Audit

Many smaller companies may be eligible for simplified reporting and exemption from audit, but the criteria are set by law and can change over time. Whether your company qualifies depends on factors such as turnover, balance sheet size and number of employees, as well as whether it belongs to a group. We will help you check which regime applies before your accounts are prepared.

Managing From Abroad

Many of our clients run an English company while living elsewhere. A dependable accountant who understands both the English requirements and your home country’s perspective helps you stay compliant and avoid surprises.

Contact eTuls if you need bookkeeping, annual accounts or tax filing for your English company, and we will propose a service that fits the size of your business.