Statutory Accounts Service

Preparation & Filing Of Statutory Accounts


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Statutory Accounts Preparation

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Statutory accounts and business accounts are of paramount importance in business management.

They allow a company and it's shareholders oversight of the financial well being of the company.

It also provides an explanation of any profit or loss on that financial year and any growth that is forecast.

What are statutory accounts?


Statutory accounts, often called annual accounts by companies, show a breakdown of the companies finances that year.

They show expenditure, profit and loss, and any income.

When preparing statutory accounts you do not need to include every invoice or expenditure, just an overview of the finances of the company, it's overall spending for that financial year.

Statutory, or annual accounts are a very important aspect to the running of your company.

These must be sent to shareholders so they can see how profitable your business is.

These accounts must also be filed with Companies House, failure to do so in the allotted time can lead to a fine.

Statutory accounts follow a generic layout, this is a must as it has to be easy to understand for your shareholders.

Moreover, certain key information must be shared.

Why are statutory accounts important?


Statutory accounts, or the annual accounts of your company, are a legal requirement for all companies registered with companies house.

These accounts are prepared using your companies financial records and are published annually, at the end of your companies financial year.

Copies of your statutory accounts must be sent to the following.

  • Any shareholders that you have.
  • Any person who are able to attend your company's general meetings.
  • A copy must be sent to Companies House.

As part of your companies tax return you must send a copy to HM Revenue and Customs (HMRC).

There are deadlines for which your statutory accounts have to be published, these may vary from when you send your tax return to HMRC.

However, sometimes it is possible to do these at the same time.

Statutory accounts must be completed and filed with HMRC within 21 months of your registration of your company with Companies House.

Statutory accounts must then be filed annually, within 9 months of the end of the financial year for your company.

It is important to note that failure to do so, or indeed filing the statutory accounts late could lead to a fine from HMRC, this fine can be up to £1500.

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What are the key features of statutory accounts?


Statutory accounts must be produced annually.

Your statutory accounts must include:

  • Balance sheet, this will show the value of the companies assets, or everything that it owned, anything the company owes out, and anything that company is owed by any third party.
  • Profit and loss account, this will show the company's running costs, sales and any profits or any losses the company has accrued over that particular financial year.
    It will also include any deductions that have been made, for example payroll and taxes.
  • Any further necessary notes about the accounts, which will provide explanation to expenditure and revenue of the company.
  • It will also include a directors report.

All companies registered with Companies House are required by law to complete and publish their statutory accounts and share it with HMRC and it's shareholders, as well as any person who is allowed to attend general meetings.

If your company is small, it may not include a directors report if it is classed as a micro-entity, see our frequently asked questions to see if your business qualifies as this.

If your company is not a small business, then you will have to include an auditors report.

To see if your business qualifies as a small business see our frequently asked questions below.

Outsourcing your statutory accounts


Our expert accountancy teams are on hand to help and advise you in what type of accounts you need to prepare or can even prepare your statutory accounts for you.

We can remove the stress and leave you with peace of mind knowing that your statutory accounts are being prepared by a professional accountant.

This will save you a great deal of time which you can use to focus on the business.

Moreover, our expert accountants will be looking for ways to save you money in taxes as well, as often people do not know what rate of VAT or Corporation Tax they should be paying on certain items and so overpay.

Our clients will often find that they have saved money through hiring our accountants.

We understand that getting your statutory accounts right will save you money in fines from HMRC, but it will also give you a greater understanding of what is going on in your business, where money can be saved, as well as potential areas for growth.

Our accountants will work closely with you so that they can identify these areas.

We understand that it is important to get your statutory accounts as soon as possible after the end of the financial year, so regardless of how you have kept your financial data, whether it is a complete set of books, or bank statements and receipts, our accountants will work with that to produce a complete, HMRC and Companies House compliant, set of statutory accounts for you as quickly as possible.

To hear how our accountancy teams can help you, whilst saving you time and money, get in touch today.

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Frequently Asked Questions About Statutory Accounts


What is preparation of statutory accounts?

Your statutory accounts are produced annually and show the financial records of your company for that financial year.

These accounts show the expenditure and revenue of your company, any profits and losses.

You must send copies of these to HMRC, Companies House, all Shareholders, any directors and anyone who is welcome at your companies general meetings.

Can I prepare my own limited companies accounts?

If your company is considered small, which means it has a turnover of less than £6.5 million per annum, you are able to send an abbreviated version of your accounts to Companies House.

Although you will still have to provide the full version for your shareholders and HMRC.

What is total exemption full accounts?
  • Total Exemption Full - this term refers to medium or small business' filing full accounts.
  • Total Exemption Small - this term refers to medium or small companies that file only the abbreviated accounts at companies house.
  • Dormant - this refers to a company that is no longer actively trading and therefore has no accounting transactions.
Can you file paper accounts at Companies House?

Yes. Accounts can still be filed in paper at Companies House.

However, it is highly recommended that you get them to Companies House before the deadline, because if they are rejected you will not have time to redo them and will incur a late submission fine.

What is a micro entity?

A micro entity is considered to be a very small business. To be eligible to be classed a micro entity you must fill two fo the following criteria.

  • The turnover of your company must be £632,000 or less.
  • Your company has £316,000 or less on the balance sheet.
  • Your company has 10 employees or less.

In the event your company is a micro-entity you are able to:


  • Prepare and submit to Companies House simpler accounts when completing your statutory accounts.
  • You will be able to send Companies House only your balance sheet.
  • You will also be entitled to the same exemptions as a small business.
What is a small company?

For you to be eligible to register as a small business you must meet two of the following criteria:

  • Your company must have a turnover of £10.2 million per annum or less.
  • On the balance sheet your company must have £5.1 million or less.
  • Your company must have 50 employees or less.

As a small business you do not need to file a full Statutory Account with Companies House. This means you only send a simpler balance sheet, with any notes to Companies House, this is call Abridged Accounts.

There are some benefits to this, for example there will be less information about your company in the public domain.

If your company is considered a small company you can:

  • Apply for an exemption meaning that you will not have to be audited on your company accounts.
  • Decide whether or not you wish to send a copy of any directors reports or profit and loss accounts.
What's the deadline for filing accounts with Companies House?

The HMRC Deadline for filing Statutory accounts is 21 months after registering your business with Companies House and 9 Months after the end of each financial year for your company.

Are there any hidden charges for your service?

No. Our services to you are worked out on a fixed fee.

Charges for our services will be made clear to you before you decide to engage us to manage your books.

Why not contact our team now for a free quote from our accountancy team?

Do I need to VAT registered?

No. However, all business in the UK are legally obliged to register for VAT if your turnover is higher than the annual registration threshold.

In some cases, it can also be advisable to register for VAT as this yield other benefits for your business, we are happy to discuss what those may be with you.

Do I need to register for Pay as You Earn (PAYE) Payroll?

If your business has any employees at all you should enrol in the PAYE system.

Even if you are the only employee and act as both director and employee it's important that you have contacted HMRC and registered with the PAYE scheme and continue to make all RTI submissions.

Even if you only outsource your work, and so use sub-contractors, as you pay yourself you must be registered with this scheme.

Is accountancy and bookkeeping the same?

Bookkeeping put simply is keeping accurate financial records for a business.

The most notable difference between bookkeepers and accountants is that accountants are expected to analyse and interpret the data and provide ways in which you can save money, bookkeeping does not do this.

Do I need a bookkeeper if I have an accountant?

Accountants and bookkeepers do very different jobs in the businesses they work with.

Bookkeepers keep their client’s general ledgers up to date, which may include daily data compilation, ensuring accuracy in the accounts, ensuring the accounts are easy to understand and accessible by categorising it appropriately, and generating general financial statements.

Whereas accountants analyse the data, look for ways to save money in taxation, and prepare tax returns.

Should I outsource my accounts or hire a bookkeeper in house?

If you choose to hire a bookkeeper in house you will also have to become their employer, and this may not suit you as it will create more work.

As an employer you will have to pay their National Insurance and Taxes to HMRC. You will have to provide holiday and parental cover and produce their payslips.

If you choose to outsource to us then all this extra work will be taken away and placed with us, and our dedicated team will be able to take care of your accounts and work to ensure no errors are made.