We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Small Ltd Co accounting advice needed

Options
I am a director of a small limited company with turnover of less than £5000.

Our year end was last April and I have received a reminder from Companies House that the annual accounts must be filed before the end of February. When we started the company we had hopes of success that would have resulted in a much higher turnover and therefore sought out accountants, which we have not had any contact with since.

The Companies House website appears to indicate that I do not need to have the accounts audited because we are a small company. Can somebody please advise me if this is correct and point me in the direction of a somewhere that I can get information about drawing up accounts to meet Companies House requirements.

Any other advice on the subject would be gratefully received.

Thank you.

Comments

  • tramps
    tramps Posts: 66 Forumite
    Part of the Furniture
    If you are a ltd company registered with Company house you will need to send in accounts by 31st Jan. There is a lower limit on which the accounts do not need to be audited think its £10,000 but they still need to have the accounts submitted. If you are ltd you need a chartered accountant do this.
    Please look into this quickley as they charge for late accounts.
    hope this helps
  • Not strictly true. Whilst it may be possible to do the accounts yourself, they need to be presented correctly and quote the correct regulations. The time it takes to get this right would far outway the cost of getting an accountant to do it.
    On the other hand, as you are only a small limited company and not subject to audit - the treshold of which is now (I think) 2 million you do not need a chartered accountant to draw up your books. You can instead use a licensed or practising accountant - AAT qualified for instance. I think others can come up with other options if you wait. The difference being £30 - £50 per hour as apposed to £60 -£100.
  • NOWSE
    NOWSE Posts: 386 Forumite
    Part of the Furniture Combo Breaker
    tramps wrote: »
    If you are a ltd company registered with Company house you will need to send in accounts by 31st Jan. There is a lower limit on which the accounts do not need to be audited think its £10,000 but they still need to have the accounts submitted. If you are ltd you need a chartered accountant do this.
    Please look into this quickley as they charge for late accounts.
    hope this helps

    Thanks for replying but I think our wires have become crossed somewhere.

    I have a letter from Companies House quoting the end of February deadline. Surely the 31 Jan date relates to the Inland Revenue and I have already advised them of the tax position.
  • tramps
    tramps Posts: 66 Forumite
    Part of the Furniture
    sorry NOWSE
    Just saw you year end was end of April you are right they need the accounts by the end of Feb was reading your post wrong and asummed that the accounts ran along side the tax year. Submitted my accounts last week but my financial year is one month before yours.
  • Mandles
    Mandles Posts: 4,121 Forumite
    I am a tiny limited company and have never used an acountant to do this. I just pasted and copied the legal / official guff that i needed (ring them and they will tell you exactly what you need to write )and then just send income expenditure and balance on the same bit of paper. Head it with company name, company number and year ending info. It is all pretty simple. I am happy to email it to you if you want and you can just add your own figures but you will obviously have to get your books up to date..
  • NOWSE
    NOWSE Posts: 386 Forumite
    Part of the Furniture Combo Breaker
    Mandles wrote: »
    I am a tiny limited company and have never used an acountant to do this. I just pasted and copied the legal / official guff that i needed (ring them and they will tell you exactly what you need to write )and then just send income expenditure and balance on the same bit of paper. Head it with company name, company number and year ending info. It is all pretty simple. I am happy to email it to you if you want and you can just add your own figures but you will obviously have to get your books up to date..

    Thank Mandles. I would really appreciate you emailing me your template. That's very kind.
  • Mandles
    Mandles Posts: 4,121 Forumite
    company name here
    COMPANY NUMBER: here

    Balance Sheet as at year ending date here

    INCOME EXPENDETURE BALANCE
    £.................... £.................. £...............


    For the year ended date here the company was entitled to exemption under section 249A(1) of the Companies Act 1985. Members have not required the company to obtain an audit in accordance with section 249B(2) of the Companies Act 1985;

    The directors acknowledge their responsibility for:

    i. ensuring the company keeps accounting records which comply with section 221; and

    ii. preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit or loss for the financial year, in accordance with the requirements of section 226, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company.

    The accounts have been prepared in accordance with the special provisions in Part VII of the Companies Act 1985 relating to small companies.

    Signed




    Name
    Company Director.
  • Mandles
    Mandles Posts: 4,121 Forumite
    This is what i send them and they seem happy enough with it. I also send a cover note with it that also has our address and details on it.I thought i would post it as it is easier than emailing everyone with it. Hope it is of some help.
  • grey_lady
    grey_lady Posts: 1,047 Forumite
    A decent accountant will save you money, will know all the ins and outs of what expensives you can claim etc. It can be a false economy to do it yourself.
    Snootchie Bootchies!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.6K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.