Company accounts
Company law

The company accounts must be prepared to the accounting reference date. See accounting reference date. In the event that the accounts filed late, automatic fines apply. See below.  The accounts must cover the entire period the company has been in existence and not just trading periods.

A public limited company has 7 months from its accounting reference date to file its accounts and private companies have 10 months from the accounting reference date, other than in their first year of existence. In the first year of incorporation, the accounts must be delivered to Companies House within 22 months for private companies and 19 months for public limited companies. Where the accounting reference date has been shortened, slightly different rules apply.

Foreign corporations that 1. have a branch in the United Kingdom and have no obligation to file accounts in their country of incorporation or 2. have a place of business in the United Kingdom are obliged to file accounts in the United Kingdom.

All companies formed in the United Kingdom must keep accounts, whether or not they have traded during the accounting period. The following records must be kept unless an exception applies which allows the company to file abbreviated accounts: 

1. a balance sheet
2. a profit and loss account
3. an auditor's report, where applicable
4. a director's report, signed by either the company secretary or a director
5. where the company is part of a group of companies, the group's accounts
6. quoted companies must also provide further information in respect to their operations and financial outlook.

Exemptions also apply to unlimited companies.

Abbreviated Accounts

Some small and medium companies (SMEs) may prepare accounts for its shareholders under s 246 and 246A of the Companies Act, or file abbreviated accounts.

Audits

Audit exemptions exists for companies with less than £1 million and with assets of £1.4 million or less.

Fines

In the event that the accounts are filed late, for a private company a fine of £100 will apply where they are less than 3 months' late; £250 where they are less than 6 months' late,  £500 where they are less than 12 months' late and £1,000 where they are more than 12 months' late. Filing company accounts late is also a criminal offence.