Statutory Accounts Overview
Statutory Accounts are the annual reports/ accounts to show the status of a limited company. If you own a limited company, then it is mandatory for you to submit annual reports for you every fiscal year. Every limited company must arrange and provide information to the companies’ house and HMRC.
For Self-employed, you have to collect your information and submit your annual profit report for yearly tax return.
Accountants handle accounts for many businesses with annual tax returns and help with documents to submit. It is compulsory whether it is a company director or a self-employed person, the calculation, and information must be authentic. The tax return must file on time.
What are Annual accounts/statutory accounts?
The annual accounts/statutory accounts are obligatory for business trading as a limited company. The annual report must be consisting of the following components:
- Profit and loss statement
- Balance sheet
- Directors report.
The size of the company does matter when it comes to the details required and the accounts must be reviewed (audited). The companies with an annual turnover of less than £10.2 million, are known as small companies and are excluded from the requirement list.
Shareholders, HMRC and the Companies House should receive copies of accounts. The developing or small companies have a choice to file if they satisfy specific set criteria, and the fill will be a shortened version or more simplistic.
The capability of your bookkeeping system can play the most crucial role while you are collecting information. It should be able to provide accurate accounting records because a minor mistake can lead you to a real nightmare. Time management is also an essential factor; make sure you have enough time to get ready for annual accounts.
Statutory accounts filing:
- When you are setting up a business, you must think about the legal procedures and the factors which can be helpful.
- In the first step, you should register your business with HMRC.
- VAT registration is mandatory, usually after every 3 months.
- Register for PAYE (Pay As You Earn), in case you have employees. The details will provide after every transaction made to the employee.
- Companies House should update with old and new information, from the details of the directors to the changes made in share capital.