Statutory
Accounts


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Statutory Accounts

Fusion's
Statutory Accounts Service

Our Value Added Service

We do so much more than just prepare your statutory accounts and submit them to Companies House; for us, it’s about helping our clients better understand their company financials and projections, and assist with tackling any issues early on so that running your business becomes even easier.
We believe in building strong client relationships based on trust and communication so that we can help with the overall financial performance of your small business now and in the future.

Value added service

Our Fast Delivery

At Fusion, we are very proud of our prompt delivery service with the minimum of fuss. Our job is to gather all the essential paperwork, go away and do the necessary number crunching, and then within a short period of time, it will all be done for you.
We guarantee that you will never receive anything later than the promised due date. We proactively try to complete your Corporation tax returns (or your personal tax returns if self-employed) within 1 to 2 weeks from receiving the relevant information you send us. We don’t wait until the filing deadline (9 months after the year-end).

Fast delivery

Using Xero

Recording your transactions in Xero throughout the tax year brings a huge number of benefits when it comes to completing your statutory accounts.
Firstly, it means we will have all your data at our fingertips in the right format, so we can process your accounts quickly and efficiently at year end.
Secondly, keeping your books on Xero means you will have a much clearer picture of your tax liability before the bill lands because you will have easy access to reporting and future forecasting features - so there are no nasty surprises when the final bill arrives!
With the majority of our clients, we can usually help you reduce your tax liability - so you’ll often end up saving more than you spend! If you think using Xero Accounting software would benefit your business, please do contact us & we will be glad to help.

Xero features

Never miss a deadline

Knowing what information is required means you will never have to worry about running around last minute to get things ready for HMRC and risk forgetting vital paperwork and then possibly incurring a fine.
We will take care of this process for you as we will get in touch well in advance to remind you of any information we need or any payments required.

Never miss a deadline

What are
Statutory Accounts?

What are atatutory accounts

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. Small businesses can submit much simpler accounts than their bigger counterparts.

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

What information do
Statutory Accounts include?

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 over a given period of time. It would typically show a summary of income received and the types of expenses incurred. Of course, every business is unique.

A retail business for example with multiple stores may want to see income & expenses split by each individual 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 detail 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 Sheet should be prepared with notes to help indicate key business ratios, such as liquidity ratios, debtor and inventory days etc which can highlight areas of risk so you are in a much better position to plan any cashflow needs.

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

The 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 about how the business has performed during the year, any regulation impacts or change in economic outlook. It may also mention dividends the business intends to pay.

05.Auditors Report

The Auditors Report is only required for Companies carrying out an Audit (whether Compulsory or Voluntary Audit) and is provided by the Company’s auditors. After a review they will indicate whether the accounts give a true reflection of the business.

Auditors report

Different Types of
Statutory Accounts

Full Accounts must include all the key reports such as profit and loss, a balance sheet 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 provide less information about the company 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 profit and loss. These can be useful if you do not want to include details about the business such as the gross margins or the profits the business made during the year.

A company is dormant if it has had no ‘significant accounting transactions’ during the accounting period or may have recently been set up but not traded as yet.

Full 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:

  • You have a turnover totalling less than £10.2 million
  • You have a maximum of £5.1 million or lower on your balance sheet
  • You have 50 or less employees

As a small company you have the freedom to send abridged accounts to the Companies House. Additionally, 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

If your company meets two or more of the following conditions, you are defined as a micro-entity:

  • You have a turnover lower than £632,000
  • Your balance sheet shows a maximum of £316,000 or less
  • You have 10 employees or less

Being a micro-entity means it is not mandatory for you to prepare complex accounts and you can send more straightforward balance sheets to Companies House instead. The same exemptions offered 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 (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, if you formed a company on the 15th January 2020, then your automatic accounting reference date would become 31st January 2021 - the first anniversary will be 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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If you would like help with any financial reporting or completing your end of year tax returns, please contact us by clicking on the button below, fill in a quick form so we can learn a bit more about you, and we will endeavour to reply within 24 hours.


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