End of Year Preparation
The year-end for any business is the date that the company accounting period ends.
It is also the date that is used for the HMRC and Companies House to expect certain returns from you. In most self-employed businesses the important date is 5th April each year. With companies, the important date is the anniversary of the companies' start.
As the end of the year arrives it is important to bring together as much as you can, in order that most if the leg work is completed for your end of year trial balance.
Below is a guide of the actions that will help in advance of submitting your files to your account preparer:
- Have you reconciled your bank account to the year-end?
- Are all of your invoices processed, and are there any stragglers to be paid?
- Are all the expenses loaded, and any that must be paid, paid?
- Collect up any incidental expenses for the year.
- Director/Owners expenses - are these all loaded and paid?
- Call in statements of account from suppliers, check them against your records.
- Do you have copies of all bank and credit card statements up to the year-end?
What are the deadlines?
9 Months after year end to file your accounts with Companies House.
12 Months after the end of year to file accounts with HMRC, but 3 Months before this deadline is when you need to pay your tax for the same period.
Annual return once a year with Companies House.
Late Filing Penalties - HMRC
1 Day - £100.00
3 Months - Further £100.00
6 Months - HMRC will estimate your corporation tax bill and add a penalty of 10%
12 Months -
Late Filing Penalties - Companies House
Up to a month late - £150.00
1 to 3 months late - £375.00
3 to 6 months late - £750.00
Over 6 months late - £1500.00
If you file late two years in a row, the penalties double.