When and How to File Your Annual Accounts with Companies House: A Clear Guide

If you are running a UK company, filing your annual accounts with Companies House is more than just a formality; you are legally required to do this. Failing to comply can lead to hefty penalties or even legal action. 

In fact, over 213,000 UK companies failed to file their annual accounts in a single year, racking up more than £93 million in penalties. Besides being a legal requirement, it is a big factor in maintaining your company’s reputation and financial health. 

Understanding the filing process and filing it on time can help you avoid becoming part of such stats. Let’s see how you can stay compliant with annual accounts and protect your business’s reputation.

What are Annual Accounts?

Annual accounts are statements that provide a snapshot of your company’s financial position and performance over the past year. They are a legal requirement for most companies and must be filed with Companies House annually.

Annual Accounts for Different Company Sizes

There are different types of company accounts that you may need to file, depending on your company’s size. 

• Dormant Accounts: If you haven’t traded during the you file dormant accounts. For accounting periods starting on or after 6 April 2025, micro-entities must meet at least two of the following:
  • Balance sheet total ≤ £500,000
  • ≤ 10 employees
  • Turnover ≤ £1 million

• Micro Entity Accounts: Your company is considered a micro-entity if it meets at least two of the following conditions for two consecutive financial years (the current year and the year before). For accounting periods starting on or after 1 January 2016, the thresholds are:
  • Turnover ≤ £632,000
  • Balance Sheet ≤£316,000
  • Employes ≤10 

• Small companies can file abbreviated accounts, which provide less detailed information than full accounts. The thresholds for accounting periods starting on or after 6 April 2025:
  • Turnover ≤ £15 million
  • Balance sheet total ≤ £7.5 million
  • ≤ 50 employees

• Medium-sized businesses must file full accounts that comply with UK GAAP or IFRS accounting standards. New thresholds for accounting periods starting on or after 6 April 2025:
  • Turnover ≤ £54 million
  • Balance sheet total ≤ £27 million
  • ≤ 250 employees

When Do You Need to File Your Accounts?

It’s important to understand when you need to file your annual accounts. The deadline for filing depends on the type of company you are. For example:

• For a private limited company, you must file your accounts within 9 months of the end of your financial year. 

• For a public limited company, you must file your accounts within 6 months of the end of your financial year. 

• From 1 April 2027, micro-entities and small companies will be required to file a profit and loss account with Companies House, which was previously optional.

Note: Your company directors must approve your accounts before you can file them. 

What You Need to File Your Annual Accounts?

Your Annual accounts typically consist of a profit and loss account, balance sheet, and notes to accounts and financial statements. Here’s a breakdown of what they are:

• P&L statements: The profit and loss account shows your company’s income and expenses over the year.

• The balance sheet: it provides a snapshot of your company’s assets, liabilities, and equity at a specific point in time. 

• The notes: These notes provide additional information about your company’s financial position and performance, including any significant accounting policies or events. 

You should also have a record of your stock, if applicable.

For a deeper understanding of how balance sheets contribute to your financial statements, exploring the detailed components of a balance sheet can provide valuable insights.

Identity Verification for Directors and PSCs

• Starting in Autumn 2025, Companies House will introduce a new identity verification process for:
  • Directors
  • People with Significant Control (PSCs)
  • Members of Limited Liability Partnerships (LLPs)
• A 12-month transition period will allow existing directors and PSCs to verify their identities.

If you’re unsure about any of this, here is what your annual accounts should include for a limited company. 

Thinking of getting verified? Do it today! With our like-for-like service comparison, hassle-free your identity verification to stay compliant. Why pay more when you can get more for less?

The Filing Process

You can file your annual accounts with Companies in several ways. Here are the three primary methods of filing: 

Online Filing through Companies House

Filing annual accounts through the Companies House service is a quick and efficient process. For this, you need to: 

• Register online 
• Obtain an authentication code and password
• Log in and file your documents

Through this, you receive an immediate confirmation of receipt from Companies House. This gives you peace of mind and helps you to avoid any potential penalties for late filing. 

For a step-by-step guide on this process, consider the resource on how to file company accounts.

Using Third-Party Software

The third-party software packages are designed to simplify the filing process. However, make sure that it is compatible with Companies House’s requirements. Also, see if the software is secure and offers a reliable digital signature.

• What Third-party Software Do: It prepares and files your annual accounts with Companies House, ensuring compliance with UK accounting standards.

• Why You Should Go for it: Save time, reduce errors, avoid penalties, and gain expert support at a cost-effective price.

• What Additional Services May Include: Many offer bookkeeping, payroll, VAT returns, and tax filing alongside account preparation.

• How to Choose: Look for reputable, experienced providers with transparent pricing and accreditation (e.g., ICAEW, ACCA).

Platforms like TaxAssist Accountants, Crunch, or local accountancy firms specialise in these services.

Paper Filing Option

If you are a company with limited internet access or prefer a manual process, this traditional method is ideal for you. It involves filling out physical forms and submitting them to Companies House by post. 

Here is a quick view of it:

• Key Steps: 
  • Download the correct forms
  • Fill them out accurately, 
  • Attach supporting documents, 
  • Post them to the correct Companies House address.
• Challenges: 
  • It’s slower
  • Prone to errors 
  • Requires more effort compared to online filing. 
  • Late submissions can still incur penalties.

Double-check all details before sending and use tracked delivery to ensure your accounts arrive safely and on time.

Deadlines and Penalties

As a company director, you are responsible for ensuring your company’s annual accounts are filed on time. Missing deadlines can result in penalties. Here’s what you need to know:

• Private companies must file accounts within 9 months of the accounting reference date (ARD).
• Public companies must file within 6 months of the ARD.
• First accounts for private companies are due 21 months after incorporation.

Paper Filing Phase-Out:

• From 1 April 2027, paper filing will no longer be accepted. All accounts must be filed using commercial software.

Avoid Penalties: 

• For private companies, the late filing penalties start at £150 and can increase to £1,500 with delays of more than 6 months.
• For public companies, it ranges from £750 to £7,500. 

Ensure accounts comply with UK accounting standards to compound interest. 

Unpaid late filing penalties can attract statutory interest (base rate + 8% per year), which compounds daily, so the longer the delay, the faster the total amount grows.

How to Avoid Penalties

To avoid late filing penalties, make sure that your company’s annual accounts are filed on time. Here is what you should try to adhere to:

• It is recommended to file your accounts well in advance of the filing deadline to allow for any unforeseen issues that may arise.

• Make sure accounts are free from errors or omissions; if so, you may be subject to additional penalties. 

• If you are unable to file your accounts on time due to exceptional circumstances, you may be able to apply for an extension. 

• You can apply for an extension of up to 3 months for your company’s accounts, but only if you apply before the filing deadline. 

Note: It is important to note that extensions are not granted automatically, and you must provide a valid reason for the extension request.

In addition to filing your accounts on time, you must also consider Special Cases in Filing

After Filing

Once you have submitted your annual accounts to Companies House, there are a few things you should keep in mind. Here are some key points to consider:

• Confirming Submission and Receipt: After submitting, you should receive a confirmation email from Companies House. Keep this email for your records, as it serves as proof of submission.

• Corrections and Amendments: If you notice an error or omission in your accounts after submitting them to Companies House, you can make corrections or amendments by submitting a new version. Be sure to include a note explaining the changes you have made.

• Compliance and Future Planning: Filing your annual accounts is just one part of your compliance obligations. You should also ensure a confirmation statement while maintaining accurate records.

Remember that your financial report is a reflection of your company’s performance and financial health. By taking the time to prepare accurate and complete annual accounts, you can demonstrate your commitment to transparency and compliance.

Additional Resources and Support

When it comes to filing your annual accounts with Companies House, there are various resources and support available to help you. Here are some of the most useful ones:

Contacting Companies House

If you have any questions or concerns about filing your annual accounts, you can contact Companies House directly by helpline at 0303 1234500 or their email for inquiries, i.e., enquiries@companieshouse.gov.uk.

Professional Accountancy Services

If you are cautious about how to prepare or file your annual accounts, you may want to consider hiring a professional company accountant to help you. An accountant can:

• Provide expert advice 
• Guidance on the accounting requirements for your company, 
• Timely filing and submission of accurate accounts.

For those considering this option, exploring the benefits of hiring an accountant at the right time can be crucial for your business’s compliance and growth. 

Learn more about when to hire an accountant for expert advice and guidance tailored to your needs.

It is important to note that while these resources can be helpful, it is ultimately your responsibility to ensure that your accounts are accurate and complete. If you have any doubts about any aspect of filing your annual accounts, it’s wise to seek someone skilled or contact Companies House directly.