Accounts Preparation
Company Accounts Preparation and Year-End Accounts in London
Company accounts preparation for sole traders, partnerships and limited companies. Year-end accounts filed with Companies House and HMRC. Book a consultation.
7+ years of professional experience · London SW11 office · Clients across England
At a glance
Accounts preparation at a glance
Company accounts preparation turns a year of bookkeeping records into the statutory accounts that Companies House and HMRC expect: a profit and loss account, a balance sheet and notes. For a private limited company, accounts are due at Companies House nine months after the year end, and the Company Tax Return twelve months after.
- Suits self-employed owners, business partners and company directors
- Micro-entity and small company accounts, with notes and directors' report
- Filing with Companies House and HMRC, including the CT600
- Limited company accounts typically from £500, depending on scope and records
- A clear document checklist and year-end timetable
Limited company accounts
Corporation tax return
Confirmation statement
Sole trader package
What does company accounts preparation involve?
Company accounts preparation is the process of turning your bookkeeping records into the formal statements the law requires each year: a profit and loss account, a balance sheet, supporting notes and, where applicable, a directors’ report. GOV.UK sets out what private limited companies must prepare.
It is not the same as day-to-day bookkeeping, which records transactions as they happen. Accounts preparation starts where bookkeeping stops: balances are reconciled, accruals, prepayments, depreciation and stock are adjusted, and the result is presented in the format your business type requires.
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The audience depends on structure. A sole trader’s accounts support the self assessment return, a partnership’s accounts support the partnership return, and a limited company’s accounts go to Companies House and HMRC. If you are weighing the options, our sole trader versus limited company guide explains the trade-offs.
What do the profit and loss account and balance sheet tell you?
The profit and loss account shows whether the business made money, while the balance sheet shows what it owns and owes on the year-end date. Read together, they reveal whether profit is turning into cash.
Profit and loss account
Turnover, costs and profit for the year. Check gross margin, overheads and whether profit moved the way you expected.
Balance sheet
A year-end snapshot of assets, liabilities and equity. Look at cash, money owed to you, money you owe and the directors’ loan account.
Notes and directors' report
Accounting policies, employee numbers, director transactions and other disclosures that the headline numbers cannot show.
Reports during the year, rather than once annually, belong to our management accounts service.
Which accounts must a small limited company prepare?
Most owner-managed companies qualify as micro-entities or small companies, which allows simpler accounts. For accounting periods beginning on or after 6 April 2025, a micro-entity meets at least two of: turnover up to £1 million, balance sheet total up to £500,000, and up to 10 employees on average. A small company meets two of: turnover up to £15 million, balance sheet total up to £7.5 million, and up to 50 employees.
- Micro-entity accounts: the most condensed format, which may be prepared under FRS 105.
- Small company accounts: typically prepared under FRS 102 Section 1A, with more disclosure than micro-entity accounts.
- Abridged accounts: a shortened version filed with members’ agreement. The government is removing this option from April 2028.
- Dormant accounts: a company with no significant accounting transactions still files annual accounts.
- Audit exemption: most small companies can claim it if they meet the criteria and members do not require an audit.
From shoebox to filed accounts: which documents do you need?
Complete records are the biggest factor in how smoothly accounts go. Accounting records must be kept for six years after the end of the financial year concerned, and an organised archive also eases any future HMRC enquiry.
- Bank statements for every business account, savings account and credit card, covering the full year
- Sales invoices and records of all income, including cash and card takings
- Purchase invoices, receipts and expense claims, with business and personal spending separated
- Loan, finance and hire purchase agreements, with year-end balances
- Asset purchases and disposals during the year, such as vehicles and equipment
- Stock figures at the year end, if you hold stock
- Payroll summaries and pension records (see payroll and CIS services), plus dividend and director’s loan records
- VAT returns and any letters from HMRC or Companies House
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Behind on the books? Start with cloud accounting and bookkeeping support, then use these practical accounting tips to stay current afterwards.
Company accounts preparation timeline: year end to filing
Year end
Your accounting period closes on its reference date. Note stock, bank balances and unpaid invoices.
Records in
You send the checklist items above. We reconcile them to your books and flag any gaps.
Draft accounts
We prepare the profit and loss account, balance sheet and notes, then talk you through the figures.
Approval and signature
The board approves the accounts and a director signs the balance sheet. Sole traders and partners confirm their figures.
Filing
Companies House receives the accounts, while HMRC receives the CT600 alongside iXBRL-tagged accounts and computations. Working out the tax itself falls to our tax services colleagues.
Illustrative example: for a company with a 31 March 2026 year end, accounts are due at Companies House by 31 December 2026, Corporation Tax is payable by 1 January 2027 and the Company Tax Return is due by 31 March 2027.
When are accounts due, and what are the penalties?
Deadlines are fixed by law and penalties are automatic. The table summarises the rules for private limited companies, as published on GOV.UK and in HMRC’s Company Tax Return penalty guidance.
HMRC may add penalties of 10% of unpaid tax once a return is six and twelve months overdue. Repeat lateness costs more: three late returns in succession turn each £200 penalty into £1,000.
| Item | Rule |
|---|---|
| First accounts, Companies House | 21 months after registration |
| Later accounts, Companies House | 9 months after the financial year end |
| Corporation Tax payment | Nine months plus one day after period end |
| Company Tax Return (CT600) | 12 months after the period ends |
| Accounts up to 1 month late | £150 penalty |
| Accounts 1 to 3 months late | £375 penalty |
| Accounts 3 to 6 months late | £750 penalty |
| Accounts over 6 months late | £1,500 penalty |
| Accounts late two years running | Penalty doubled |
| Company Tax Return late | £200, plus another £200 after 3 months |
What if you miss a deadline or need more time?
Act straight away, because Companies House sets the penalty by how late the accounts arrive. File as soon as they are ready.
- If an unplanned event stops you filing, you can apply for extra time, but only before the deadline. There is no automatic extension.
- Appeals succeed only in limited circumstances. GOV.UK lists dormancy and accountant error among reasons that are unlikely to work.
- Failing to deliver accounts is a criminal offence, and persistent default can lead to the company being struck off.
What are directors responsible for?
Directors stay legally responsible for the accounts even when an accountant prepares them. The board must approve the accounts, a director signs the balance sheet, and copies go to members as well as Companies House.
Your accounting reference date sets the year end. A new company’s first one falls on the last day of the month in which its incorporation anniversary falls. You can change it, but a period cannot be extended beyond 18 months. Forming a company? Our business start-up services cover the setup.
How MTA Accountants handles company accounts preparation
We take the records you send, prepare accounts in the right format for your structure and walk you through what the figures mean before anything is filed. Published fees for limited company accounts are typically from £500, and sole traders and partnerships can choose a comprehensive package from £60 per month. Each quote is set after we see the year’s paperwork, and the headline figures cover statutory compliance and nothing beyond it.
Because we use Xero, QuickBooks and Sage, your existing ledger can feed straight into the accounts; the digital accounting solutions page explains more. Behind the work are 7+ years of professional experience.
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Related work has its own pages: landlord tax, payroll and tax planning. Browse all our services, or book a consultation for a free non-advisory conversation about your year end.
Who do we prepare accounts for, and where?
The businesses we prepare accounts for include freelancers, contractors and e-commerce sellers to tradespeople and tech start-ups, trading as sole traders, partners, companies or LLPs. Every sector is listed on the who we help page. We are based at Lavender Hill in London SW11, and year-end work for clients elsewhere in England is done by video, phone and secure file sharing or in person.
Local pages cover Croydon, Sutton, Westminster and Redhill. More are listed under areas we serve, and you can read about MTA Accountants.
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MTA Accountants, International House, 66 Lavender Hill, London, SW11 5RQ. Phone: 020 3488 8635. Email: office@mtaaccountants.co.uk. Open Monday to Friday 8am to 8pm and Saturday 9am to 1pm; closed Sunday.
Can I do my own company accounts preparation, or do I need an accountant?
Directors can prepare and file their own accounts, as the law does not require an accountant. In practice, the accounts must follow the right accounting framework, be approved and signed by the board and be filed in the correct format with Companies House and HMRC. Many owners prefer professional help to avoid errors and penalties. Directors remain legally responsible either way.
What decides how long finalising my year-end accounts will take?
It depends mainly on your records. When bookkeeping is up to date, bank accounts are reconciled and documents arrive complete, the work moves quickly. Missing invoices and unanswered queries cause most delays. Because filing deadlines are fixed, start gathering documents soon after your year end and agree a timetable with your accountant at the outset.
Are statutory accounts the same thing as management accounts?
Statutory accounts are the annual accounts the law requires, prepared to an accounting framework for Companies House and HMRC. Management accounts are optional internal reports, usually monthly or quarterly, that help owners make decisions and spot problems early. Statutory accounts look back over a full year in set formats, while management accounts can be tailored to the figures you want to watch.
Do dormant companies have to file accounts?
Yes. Every company must file annual accounts with Companies House, including dormant ones. A company is generally dormant if it has had no significant accounting transactions in the period. Dormant accounts are simpler, but they are still due on time, and dormancy is not accepted as a reason to cancel a late-filing penalty on appeal. Check Corporation Tax obligations separately with HMRC.
Are my company accounts public?
Accounts filed at Companies House go on the public register, so customers, suppliers and lenders can see them. What appears depends on the accounts you file, and many small companies currently file a balance sheet and notes without a profit and loss account. From April 2028, small companies and micro-entities will have to file a profit and loss account, with an option to opt out of publishing it.
Does my company need an audit?
Many small companies are exempt. A company generally qualifies as small if it meets two of three tests: turnover up to £15 million, balance sheet total up to £7.5 million, and up to 50 employees on average, for periods beginning on or after 6 April 2025. It must also not be a public company, bank or insurer, and members can still require an audit.
Why are there separate filings for Companies House and HMRC?
Companies House receives your statutory annual accounts for the public register. HMRC receives your Company Tax Return (CT600), with supporting accounts and tax computations, so it can calculate Corporation Tax. The deadlines differ: nine months after the year end for Companies House accounts and twelve months for the tax return. Corporation Tax payment is due earlier, at nine months and one day.
What will limited company accounts cost me with MTA?
Published pricing for limited company accounts is typically from £500. Once we have seen your paperwork we can give a firm figure, because messy ledgers and multi-activity businesses take longer than simple ones. The figures relate to compliance work and exclude setup fees. Sole traders and partnerships can choose a comprehensive package from £60 per month. Book a consultation to see exactly what is covered.
What are abridged accounts, and are they changing?
Abridged accounts are a shortened version of a small company's accounts, filed at Companies House with members' agreement. The government has confirmed it is removing this option as part of reforms from April 2028, when filing will also move to commercial software in iXBRL format. Until then, whether they suit you depends on who reads your accounts, such as lenders.
Do sole traders and partnerships file accounts at Companies House?
No. Accounts filing at Companies House applies to limited companies and LLPs. Sole traders and partnerships still prepare accounts, which support the figures on their self assessment or partnership tax return filed with HMRC. Good accounts also help when applying for a mortgage or business finance, because lenders often ask to see them.
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MTA Accountants
International House, 66 Lavender Hill, London, SW11 5RQ
Phone: 020 3488 8635
Email: office@mtaaccountants.co.uk
Mon–Fri 8am–8pm · Sat 9am–1pm · Sun closed