Annual Accounts Explained: What to File and When

Running a limited company means preparing annual accounts, even if the business is small, made a loss or
hasn't traded. The accounts show the company's financial position and performance. They also support its tax reporting,
but Companies House accounts, your Company Tax Return and your Corporation Tax payment are
separate jobs with separate deadlines.

This guide explains what accounts include, who receives them, when they're due and how to keep the
preparation manageable.

What are annual accounts?

Annual accounts, also called statutory accounts, are prepared from your company's financial records at the end of its financial year. They generally include:

• A balance sheet, showing what the company owns, owes and is owed at the year end.

• A profit and loss account, showing income, costs and the profit or loss for the period.

• Notes explaining relevant figures and accounting policies.

• A directors' report, unless an exemption applies, such as for eligible micro-entities.

• An auditor's report if an audit is required.

• A director must approve and sign the balance sheet, and the accounts must follow the relevant accounting standards. The exact format depends on the company's size and circumstances.

• An accountant can prepare the accounts, but the directors remain responsible for making sure they're correct and filed on time. See GOV.UK's accounts preparation guidance.

Who needs to file annual accounts?

A private limited company normally needs to file accounts whether it traded throughout the year, traded briefly, made a loss or was dormant.

Sole traders and ordinary partnerships don't file company accounts with Companies House. Incorporation creates a separate legal entity with its own reporting responsibilities. For the wider checklist, read our guide on what happens after you register a limited company.

What Happens After You Register a Limited Company?

What if your company is dormant?

For Companies House, a company is dormant if it has had no significant accounting transactions in the financial year. Certain transactions are ignored, including Companies House filing fees, late accounts penalties and money paid for shares when the company was incorporated.

Simply making no sales doesn't necessarily mean the company is dormant. Expenses or other transactions may matter.

Eligible dormant companies can file simpler accounts. However, they still need to file a confirmation statement.

HMRC has its own dormancy rules. Check your Corporation Tax position separately rather than assuming that dormant accounts settle both requirements.

Confirmation Statements Explained: What to File and When

Corporation Tax Explained for Limited Companies

Can small companies file simpler accounts?

Many founder-run companies qualify for simpler reporting, but you need to check eligibility rather than assume it.

For financial years beginning on or after 6 April 2025, the size thresholds are:

Generally, the company must meet at least two of the three conditions. Group rules, excluded activities and rules about qualifying in successive years can also affect eligibility.

Eligible micro-entities can prepare simpler statutory accounts and currently file a reduced balance sheet with the required disclosures at Companies House. Small companies also have options to omit some information from their public filing. Abridged accounts are currently available where the conditions are met and all members agree.

You still need the accounts required for members and any Company Tax Return. Check the small company and micro-entity guidance, particularly if your company has grown or is part of a group.

When are annual accounts due?

For a typical private limited company, the standard deadlines are:

Different rules can apply if you change the year end, have unusual accounting periods or fall under Corporation Tax instalment payment rules. Check your company's actual dates on the register and with HMRC.

For example, for a normal subsequent year ending 31 March 2026, the usual Companies House accounts deadline is 31 December 2026. If the tax period also ends on 31 March, Corporation Tax is normally due 1 January 2027, while the tax return is due 31 March 2027.

The payment deadline comes before the tax return deadline. Don't wait until the return is due to work out what the company owes. Our Corporation Tax guide explains that side of the process.

Why your first year can be different

Your first accounts usually cover slightly more than 12 months, because they run from incorporation to the accounting reference date set by Companies House.

A Corporation Tax accounting period cannot exceed 12 months. That means you may need two tax returns, with separate payment deadlines, to cover the period in your first accounts. When trading began also affects the tax periods.

Check the first accounts and tax return guidance instead of treating your first year as a standard annual cycle.

How do you file your accounts?

You can prepare and file them yourself if you have the knowledge and suitable tools, or use an accountant. There is no general requirement to hire an accountant simply because you're a company director.

For many founders, professional help is useful because preparing compliant accounts and calculating taxable profit require more than adding up a bank balance. Read when founders need an accountant if you're deciding what support to use.

As of October 2026:

Companies House accepts accounts through supported online services, commercial software or paper, depending on the accounts type.

Company Tax Returns generally need compatible commercial software. The former free joint accounts and tax return service closed on 31 March 2026; limited paper exceptions remain.

Software that handles bookkeeping doesn't necessarily prepare or file statutory accounts or a Company Tax Return. Check its specific capabilities.

If filing accounts online yourself, arrange access to the company's authentication code early. A requested code can take up to 10 working days to arrive.

Our guide to accounting software and accountants for founders explains how the two can work together.

Accounting Software vs Hiring an Accountant: Which Do You Need?

When Do Founders Need an Accountant?

What happens if you file late?

Companies House applies automatic late accounts penalties to private companies:

The penalty doubles if accounts are late in two successive financial years. Persistent failure to file can also lead to prosecution or the company being struck off.

Using an accountant doesn't transfer the directors' responsibility for meeting the deadline. There are separate consequences for a late Company Tax Return or late tax payment.

If something outside your control prevents filing, you can apply for an extension, but Companies House must receive the application before the deadline.

How FOUNDRS helps you stay organised

Annual accounts aren't hard to understand. They're easy to forget, and expensive when you do.

FOUNDRS keeps your company's obligations in one place. Your accounts deadline, your Corporation Tax dates, your confirmation statement, your documents and your company record all sit in a single dashboard, with reminders that land while you can still do something about them. When something changes at Companies House or HMRC, you hear about it from us rather than from a penalty notice.

This article is general guidance, not legal or accounting advice. Figures and deadlines were checked against GOV.UK and Companies House guidance at the time of writing.