UK Companies: Accounting & Financial Reporting Obligations

UK companies are required to prepare annual accounts and financial statements, filing them with Companies House and reporting to HMRC. Here's a clear overview of what's required and how we can help.

Keeping your books and records

Every UK company must maintain accurate accounting records throughout the year. These records are the foundation for everything else, annual financial statements, tax returns, and any potential audits.

Preparing your annual financial statements

At the end of each financial year, your company must prepare a set of annual financial statements. What those look like depends on your company's size, determined by meeting two out of three criteria — turnover, balance sheet total, and average employees:

• Micro-entity: turnover up to £632,000, balance sheet up to £316,000, up to 10 employees.

• Small company: turnover up to £10.2m, balance sheet up to £5.1m, up to 50 employees.

• Medium company: turnover up to £36m, balance sheet up to £18m, up to 250 employees.

• Large company: above the medium thresholds.

  
  

Which accounting standard applies?

Most private UK companies prepare accounts under UK GAAP or IFRS. The applicable standard depends on size:

• Micro-entities use FRS 105 — a simple balance sheet with minimal notes. No profit and loss account or directors' report needs to be filed publicly.

• Small companies use FRS 102 (Section 1A) — full accounting rules but with reduced disclosures. Your profit and loss account can be kept off the public register if your shareholders agree.

• Medium and large companies use FRS 102 in full — comprehensive accounts including profit and loss, balance sheet, full notes and directors' report.

• UK adopted IFRS is available to any company that chooses it (other than micro-entities) and is mandatory for consolidated accounts of UK listed companies. For group subsidiaries where the parent reports under IFRS, FRS 101 is a practical option, it applies IFRS measurement with significantly reduced disclosure requirements.

  
  

We prepare accounts under all of these frameworks.

What gets filed and where?

Your accounts are shared with your shareholders and a version filed publicly at Companies House. Private limited companies have nine months from their financial year end to file.

What you file depends on your size.

• Micro-entities file a basic balance sheet only.

• Small companies can file an abridged version keeping the profit and loss private.

• Medium and large companies file full accounts.

  
  

For tax purposes, your appointed tax advisors will file your corporation tax return with HMRC within twelve months of the year end, with tax due nine months and one day after the year end. We work closely with your tax team, providing them with the accounts and any supporting information they need.

Do you need an audit?

For most small and micro-entity companies, UK law provides an audit exemption for companies meeting the small company thresholds for two consecutive years, provided they are not a public company, bank, insurer, or listed entity. If you qualify, a short statement on the balance sheet is all that's needed.

Medium, large, and public companies must have their accounts audited annually by a registered UK auditor.

Where an audit is required, we work alongside your appointed auditors, preparing schedules, reconciliations and supporting documentation, and handling queries on your behalf.

Key deadlines at a glance

Obligation	Deadline
File accounts with Companies House	9 months after year end
File corporation tax return	12 months after year end (tax advisors)
Pay corporation tax	9 months and 1 day after year end (tax advisors)

We monitor all deadlines and will be in touch ahead of time to avoid late filing penalties.

How we can help?

We provide a focused accounting and financial reporting service for UK companies:

• Bookkeeping — accurate records maintained throughout the year.

• Preparation of annual financial statements — under FRS or IFRS, tailored to your size and circumstances.

• Companies House filing — provide annual accounts and financial statements to your registered agent in order to file in a timely manner.

• Tax liaison — we don't prepare tax returns, but we'll introduce you to trusted local tax advisors and work closely alongside them, answering any questions they have on your accounts and financial statements.

• Audit liaison — where an audit is required, we work with your auditors to make the process as smooth as possible.

  
  

If you'd like to understand what applies to your company, or simply want to hand the reporting obligations over to us, we'd love to hear from you. Please reach out to paul.young@anomalyinternational.com for further information on how we can help.

*Please note that this article is intended as a general guide only and should not be relied upon as legal or professional advice. Deadlines and requirements are subject to change and we recommend seeking tailored advice for your specific circumstances.