We prepare your private limited company's statutory accounts (annual accounts) and send copies to all shareholders, Companies House and HMRC. The statutory accounts must include your company’s:
- Balance sheet,
- Profit and loss account,
- Notes about the accounts,
- Director’s report (excluding micro-entities).
When preparing statutory accounts, there are 3 size classifications of companies to consider; small, medium or large. Your company will be classified as “small” if it has any 2 of the following:
- a turnover of £10.2 million or less,
- £5.1 million or less on its balance sheet,
- 50 employees or less.
If your limited company qualifies as a small company, you do not have to get your company accounts audited, which means we can send simpler (abridges) accounts to Companies House (must be agreed by all members). Some companies must have an audit even if they meet the rules for not having one. For further information, go to https://www.gov.uk/audit-exemptions-for-private-limited-companies
Abridged accounts contain a simpler balance sheet (signed by a director) and a simpler profit and loss account (optional). You will decide whether you wish us to send a copy of the director’s report and profit and loss account to Companies House. Be aware filing abridged accounts means less information about your company will be publicly available from Companies House.
Within the small company classification, there is a sub-set called a micro-entity. Your company will be classified as a micro-entity if it has any 2 of the following:
- a turnover of £632,000 or less,
- £316,000 or less on its balance sheet,
- 10 employees or less.
If your company is a micro-entity, it will benefit from the same exemptions available to small companies, which means we can prepare simpler accounts that meet statutory minimum requirements and send only your balance sheet with less information to Companies House.
Any companies that do not meet the criteria for micro-entities, small or medium are large companies and will have to prepare and submit full accounts.
Your limited company is subject to Corporation Tax on its profits. If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad. However, if your company is not based in the UK, but has an office or a branch here, then it only pays Corporation Tax on profits from its UK activities.
If your company receives a ‘notice to deliver a Company Tax Return’ (CT603) from HMRC you must send a Company Tax Return (CT600). This notice is sent to every company HMRC believes to be active and it defines requirements which include:
• a copy of the company accounts for the period covered by the Company Tax Return
• details of how the specified information has been calculated from relevant figures in the accounts.
The deadline to file your Company Tax Return is 12 months after the end of the accounting period and the current rate is 19%.
Benefits of Outsourcing Accounting
Time is everything and everything takes time. Accounting and payroll are no different. Saving you time is one of the most obvious advantages of outsourcing. A good accountant would have the ability to provide quality accounting information quickly and efficiently enough to allow you to make right business decisions at the right time.
Reduce overhead expenses
Employee hours, paid time off, sick leave, taxes, insurance, pension, it all adds up. Outsourcing saves you money in the long run by paying a fixed amount for the services offered. Every pound counts.
Improve data security
Most providers have already invested the money into highly secured servers using the best encryption technology. The amount of money you would have to invest in such technology alone is likely to exceed what you would pay for the outsourcing service itself.
Make better decisions
It can be very difficult to make quick decisions while balancing the multitude of changing accounting policies (and the treatment of such changes), technologies, etc. After all, if you are paying money to work with experts, they will have the right information you need. This information will allow you to continue to make decisions to grow your business with peace of mind.
We all have our strengths and weaknesses. Outsourcing allows you to focus limited resources on your business so you can be more profitable. You will be able to spend more time with your customers and offer them a higher level of service.
When you outsource accounting, you are counting on the fact that they are experts and they understand the complexities of regulations, compliance and taxes. Did you know that accountancy service providers, such as bookkeepers, accountants, tax advisers, payroll agents are regulated under the Money Laundering Regulations and they must abide by the code of professional ethics set by their institute?
In addition to these, outsourcing will give you access to other services (i.e. budgeting and forecasting) along with the traditional services (i.e. statutory accounts and company tax return). Another important thing to keep in mind is the amount of information and insight you might receive. A professional accountant with the right experience, will have the big picture in mind. This information, along with the advanced technologies can help you obtain personalised reports giving you the insight you need to further your business.
We offer a wide range of accounting services that can be tailored to your requirements, from bookkeeping to tax advice. Get in touch to find out how our highly experienced accountants can assist you and provide you with ongoing support.
We provide a full range of cost effective accounting and tax services. If you prefer to pay on a service-by-service basis, our rates range from £30 to £120 (plus VAT) per hour.
Our cost-effective monthly accounting packages and tax services are designed to help your business reach its full potential.
Need help with accounting and tax? Get your questions answered. Fill in the form and we will get back to you as soon as we can.
DISCLAIMER The information and opinions provided on this website are for general information purposes only and are not intended to constitute legal or professional advice.
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