If you are running a Limited Company (LTD) in the UK, it is your responsibility not only to keep the accounts, but also to file an annual return. This involves preparing some important documents, as well as keeping an eye on deadlines. It is imperative that you ensure that your Limited Company return is done in accordance with the regulations. Otherwise, you risk being fined or even having your business dissolved.
Filing a Limited Company return is your obligation!
Regardless of whether you run a small business or your LTD generates significant income and employs many people, you must file an annual return in all cases. The only difference is that a smaller business allows you to prepare a simplified report.
However, this does not change the fact that the Limited Company return is one of your regular duties. If you do not do it correctly or within the stipulated timeframe, you have to face the consequences.
LTD Company Accounting – What should the monthly return include?
As a business owner in the UK, you must regularly maintain the accounts of your LTD company. This primarily means keeping accounting books. However, there are also annual obligations, which include preparing the necessary documents.
At the end of a financial year, the director of an LTD company is responsible for preparing and approving the Annual Account, which is the company’s annual balance sheet. This consists of several documents, such as:
- Profit and Loss – the income statement,
- Balance Sheet – the annual balance sheet,
- Confirmation Statement – the compliance declaration.
Once the balance sheet is ready and approved by the director, it must be submitted to Companies House. The time frame for this action is limited—you have 9 months from the end of the financial year to do so. It is crucial to meet the deadline, as delays can result in a financial penalty.
However, that is not the end of the responsibilities involved in LTD company accounting. You also need to file a Company Tax Return with HMRC. If your LTD company employs workers, you will also need to submit a PAYE return every month.
Filing a Limited Company return doesn’t have to be complicated!
Before preparing any financial statements, you must first create a Trial Balance and correct any accounting errors. Then, you need to prepare all the required documents, meet formal requirements, and pay the tax.
This may sound complicated and time-consuming, but remember, you don’t have to do everything yourself. Our office can handle this for you. This way, you will have more time to run your LTD company and be confident that your accounting is in the right hands.
