Statutory
Accounts

Fusion's
Statutory Accounts Service

Value Added Service

We don’t just prepare your statutory accounts and submit them to Companies House; we help our clients better understand where the company’s financials are going and how to tackle the issues at hand. We believe in building strong relationships based on trust and communication with our clients.

Value added service

Fast Delivery

At Fusion, we stand out with our prompt delivery service. You will never receive anything later than the promised due date. We don’t wait till the filing deadline (9 months after the yearend), we proactively try to complete the accounts within 1 to 2 weeks from receiving the relevant information from our clients.

Fast delivery

Never miss a deadline

Tired of missing deadlines? Exhausted with paying fines and facing the consequences because you did not know when you missed a deadline? Worry not. With us, you will never miss a deadline. We know every important date and hence keep a check on the calendar. We will be informing you about all due payments and submissions well before time.

Never miss a deadline

What are
Statutory Accounts?

What are atatutory accounts

Also commonly referred to as ‘Annual Accounts’ or ‘Year-end Accounts’, Statutory Accounts must be submitted by all Limited Companies in the UK within 9 months after the company’s year-end to the Companies House.

Statutory Accounts comprise of a set of financial reports showing the financial performance (through Profit & Loss statement) of the company during the year and the financial position (through Balance Sheet) at the end of the year. In addition, they also highlight any important information through disclosures to any stakeholders in the business.

What’s Inside

Statutory Accounts prepared for Limited Companies in the UK must be fully compliant with IFRS (International Financial Reporting Standards) or the UK GAAP (Generally Accepted Accounting Practice). These will typically include the following;

01.Profit & Loss (P&L) Account

Profit & Loss (P&L) shows the performance of a business in a given period of time. It would typically show summary of Income received and types of expenses incurred.

However, every business is unique, a retail business for example with multiple stores may want to see Income & Expenses split by each store, whereas a construction business may want to see profitability of each project it undertakes.

P&L produced for management should therefore be tailor made keeping in mind the nature of business, the level of granularity required, the frequency and the layout.

Profit and lost account
Balance sheet

02.Balance Sheet

A Balance Sheet shows the financial position of a business at any given point in time. A Balance Sheets should be prepared with notes to help indicate key business ratios, such as liquidity ratios, debtor days, inventory days etc to highlights areas of risk and better plan for cashflow.

03.Key Performance Indicators (KPI’s)

Notes to the accounts shed light on key pieces of information that would be useful to any stakeholder of the business. Typical examples of these would include things like;

  • Breakdown of Fixed Assets to show amounts purchased, sold and depreciated
  • Related Party Transaction during the year
  • Detail of some of its creditor or debtors e.g. money owed broken between the bank, taxman or a director
Notes related to accounts
Directors report

04.Directors Report

Companies Act 2006 requires all larger companies to produce a Directors Report in their Annual accounts to improve corporate transparency. It talks about the business’s principal activities, any significant events that incurred during the year and its business impact.

The report is an opportunity to provide greater detail to its readers about how the business performed during the year, any regulation impacts or change in economic outlook. It may also talk about dividends the business intends to pay.

05.Auditors Report

Auditors Report is only required for Companies carrying out an Audit (whether Compulsory or Voluntary Audit). An Auditors Report is provided by the Company’s auditors, with their opinion on whether the Accounts show a true reflection of the business.

Auditors report

Different Types of
Statutory Accounts

As the name suggest, Full Accounts must include all the key reports such as a profit and loss account, a balance sheet account and detailed notes to the accounts. In addition to this, full accounts must also include an accountant’s report and a director’s report. Both of which provide further important information about the company.

Companies that meet the Small Business or a Micro Entity criteria, can send a more summarised version of full accounts called the ‘Abridged Accounts’. Abridged accounts provides less information about the company to the public and has a simpler balance sheet, they only need to include the Balance Sheet and a reduced number of notes to the accounts. They do not include the profit and loss account. These can be useful if you are trying to hide details about the business such as the gross margins or the profits the business made during the year.

If your company has not had any major or considerable transaction in the past financial year, then Companies House will consider it a dormant company. Major transactions are required to be reported. If your company has not made any such transaction, then you will be categorized as a dormant company.

Full accounts

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Statory Accounts?

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Criteria for small companies

Criteria for Small companies

If your company meets two of the following conditions, it is considered as small:

  • Has a turnover totalling lower than £10.2 million
  • Shows a maximum of £5.1 million or lewer on the balance sheet
  • Has equal to or less than 50 employees

All small companies have the freedom to send abridged accounts to the Companies House. Moreover, small companies also have the option to send a director's report, a profit and loss account as well as the opportunity to audit or not.

Criteria for Micro-entities

Companies, even smaller than small companies, are categorized as micro-entities. If your company meets more than or equal to two of the following conditions, it is regarded as a micro-entity:

  • Has a turnover totaling lower than £632,000
  • Shows a maximum of £316,000 or less on the balance sheet
  • Has equal to or less than ten employee

Being a micro-entity, it is not mandatory to have to prepare complex accounts and can send more straightforward balance sheets to Companies House. All the exemptions which are given to small companies are also given to micro-entities.

Criteria for micro entities

When do I need to file?

The deadlines for Private Limited Companies (LTD) differ to Public Limited Companies. Both are determined by your Companies accounting reference date. This is also known as the year end date. When you first form the company this is automatically set as the first anniversary of the last day of the month in which you incorporated the company. So for example, if you form a company on the 15th of January 2010, then your automatic accounting reference date would become, 31st January 2011, in other words the first anniversary of the last day of the month in which you formed the company. For all private Limited Companies the Deadlines are:

AccountsDeadline
1st Accounts with Companies House21 Months after date of company formation
Annual Accounts with Companies House9 Months after your company’s financial year end
Corporation TaxDeadline
File Company Tax Return (CT600)12 Months after your accounting period
Pay Corporation Tax9 Months and 1 day after your ‘accounting period’ for Corporation Tax ends

Penalties

Accounts
Time after the deadlinePenalty (for private limited companies)
Up to 1 month£150
1 to 3 months£375
3 to 6 months£750
More than 6 months£1500
Corporation Tax Returns
Time after the deadlinePenalty
1 day£100
3 monthsAnother £100
6 monthsHM Revenue and Customs (HMRC) will estimate your Corporation Tax bill and add a penalty of 10% the unpaid tax
12 monthsAnother 10% of any unpaid tax

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