To-do list for your limited company’s year-end
March, 8 2024
If you’re a director at a limited company, we’re sure that you know all about your year-end and what that entails. By that specific date, there are a few things to do.
What you need to do for the year-end
Ah, ‘year-end’, that old chestnut. It’s every accountant’s favourite time of year (or least favourite) and it can be quite daunting, especially if it’s your first year as a limited company director. But don’t worry, once you know what you need to do, you can start putting it into motion. We’ve written this to-do list so you’ll everything you need by your individual date. Here’s what you need to start getting ready.
Get records and paperwork up-to-date
First things first, you need to make sure all your company records are up to date and readily accessible. You cannot complete any of the points on this list without having all your paperwork organised so now’s a good time to get things in check. Organise a meeting with your accountant or accounting department. Everyone should be on the same page and there should be nothing missing. Here are some things to think about:
- Have you accounted for all your business expenses? Don’t leave anything left off if it can be legitimately claimed – it’ll affect your Corporation Tax!
- Chase up any overdue invoices; it’s always better to end the year with as little invoices hanging over as possible so all your figures are accurate
- Get any statements you might need to complete your records: suppliers, banks, credit cards… the lot.
Submit Company Tax Return and Annual Accounts to HMRC
You’ll obviously need to submit a couple of documents to HMRC, these are your Company Tax Return (CT600) and your Annual or Statutory Accounts. Firstly, your CT600 is a basic overview of your income as a limited company, taking away any expenses and tax allowances. This will calculate your Corporation Tax. Secondly, our Annual Accounts are made up of your Income Statement, Statement of Financial Position and Footnotes. Essentially, these show your profit or loss, your assets and liabilities and any financial commitments, credit or guarantees that HMRC needs to know about.
Late penalties
If you submit these documents late, you’ll be liable to pay penalties: £100 for 1 day, £100 for 3 months, 10% of your Corporation Tax bill for 6 months, an additional 10% for 12 months
Submit your Statement of Financial Position and Footnotes to Companies House
Fortunately, you’ll probably have already organised these two documents for submitting your Annual Accounts to HMRC. These will also become public on the Companies House website. Remember, you can be fined and struck off if you don’t submit your Statement of Financial Position.
Late penalties
If you submit these documents late, you’ll be liable to pay penalties: £150 for up to a month, £375 for 1-3 months, £750 for 3-6 months, £1500 for over 6 months. You can also be struck off the register as a company as well as facing a fine.
File any VAT returns
Usually, if you’re VAT registered you will be due to file your VAT returns around this time of year. It’s always more effective to get everything done in one go, anyway. This is something to think about, especially if you’re having a meeting with your accountant.
Deadlines
Bear in mind, HMRC requires these documents within 12 months after the end of the period it covers. Corporation Tax should be paid within 9 months and a day after the same period. Your annual accounts should be submitted to Companies House within the first 9 months after your year end. It’s worth double checking all your dates with your accountant to be sure.
Plan for the year ahead
Now, you can start to plan for the financial year ahead! Are you happy with all your suppliers? Are your systems as efficient as they can be? How can you reduce your tax bill going forward? These are just a few questions that we recommend you ask within your limited company.
We hope this blog post has been helpful in getting organised for your company’s year-end. Get in touch with us if you want to know how to streamline your accounting even further!
