Year End Accounts Kent | How to avoid fines

Year End accounts for business in Kent

Dealing with your End of year accounts can be a pain for any business big or small. There are a number of risks you take if you get it wrong or you complete it late. It’s very important to prepare and complete all of your accounts on time for HMRC and Companies House.

We have put together a handy guide so you can avoid any late fees or fines!

If you would like to hear directly from King and Taylor, please get in touch! 

What is end of year accounts?

Year end refers to the end of your company accounting period. This is normally April but it can depend on what you set it to. For Limited Companies, this is when you close your accounting for the financial year and file your end accounts with HMRC and Companies House.

Companies house actually have a fairly useful video on this, although it’s not particularly useful.

End of year accounts normally include

  • Directors Accounts
  • Balance Sheet
  • Explanatory Notes
  • Profit & Loss

How can I get ready for the end of my accounting year?

This can be a very stressful time for a business. Many businesses will be chasing up unpaid invoices, making sure your books are accurate and all of your expenses are in order. As well as trying to keep the business running as usual

Most companies will have an accountant like King and Taylor working on this to make the process less stressful and take much of the hard work out of their hands. In many cases hiring a trusted accountant will save the business money in both fines and taxes

At King and Taylor, we will send you a checklist of everything we need from you in order to make sure everything runs smoothly.

Year End Accounts Kent

HMRC will require:

  • CT600 – Company tax Return
  • Your annual accounts

What needs to be sent to Companies House

  • Annual accounts

When does the Year End accounts all of this need to be completed?

There is a deadline for both HMRC and Companies House, these need to be submitted online. If you are a small company then these accounts can be simplified.

Companies House suggests that all companies align with their end of the financial year which ends on 31 March. Making the filing deadline the 31st December, or within 9 months of year-end.

We have put together a useful table of key timelines for your year-end.

OrganisationActionDeadline
Companies HouseFile First Accounts21 months after the date you registered
Companies HouseFile Annual AccountsWithin 9 months of your year end
HMRCPay Corporation Tax (or inform HMRC you do not owe any)9 months and 1 day after your ‘accounting period’ for corporation tax ends
HMRCFile Company Tax ReturnWithin 12 months after the end of the accounting period

And we have put together a list of fines that you could face if you file accounts late

HMRC late filing penalties Companies House late filing penalties
1 day£100Up to a month£150
3 monthsAnother £1001-3 months£375
6 monthsEstimated Corporation Tax bill amount and an additional penalty of 10% of the unpaid tax3-6 months£750
12 monthsAdditional 10% of any unpaid taxOver 6 months£1,500

It’s important to note that HMRC increase their late penalties to £500 each time when your return is late three times in a row

If you are late with companies house two years in a row they double the penalties.

You can apply for an extension, but you must do this before the deadline or you will face a fine

We know very well how stressful the end of the year can be for many companies, so leave it to King and Taylor to make it less stressful.

For a full list of our services please have a look at our services page here.

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