Year-end accounts for companies, sole traders and partnerships
For a limited company, statutory accounts are a public filing with Companies House and the starting point for its tax return. For a sole trader or partnership, the year-end figures feed Self Assessment. We prepare both to the standard that fits the size of the business.
What a limited company files each year
Every limited company has three regular filings, two at Companies House and one at HMRC:
- Statutory accounts to Companies House, whether or not the company traded.
- A confirmation statement to Companies House, at least once every 12 months.
- A Company Tax Return to HMRC, with its own deadlines. See Corporation Tax.
Full statutory accounts contain a balance sheet, a profit and loss account and notes, plus a directors’ report unless the company is a micro-entity. The board approves them, and a director signs the balance sheet and prints their name.
Deadlines and late filing penalties
A private company has 9 months after the end of its financial year to file accounts at Companies House. First accounts covering more than 12 months are due 21 months after incorporation, or 3 months after the accounting reference date if that is later.
Penalties for a private company are automatic:
| How late | Penalty |
|---|---|
| Up to 1 month | £150 |
| 1 to 3 months | £375 |
| 3 to 6 months | £750 |
| More than 6 months | £1,500 |
The penalty doubles if the accounts were also late the year before. Late filing is also a criminal offence, and directors can be prosecuted.
Micro, small or larger: which accounts apply
The size of a company decides what it prepares and what it files. For financial years beginning on or after 6 April 2025, a company is in a category if it meets at least two of the three limits:
| Category | Turnover | Balance sheet total | Average employees |
|---|---|---|---|
| Micro-entity | £1 million or less | £500,000 or less | 10 or fewer |
| Small | £15 million or less | £7.5 million or less | 50 or fewer |
The limits were raised from that date, so a company that was too large for a simpler regime before may now qualify.
FRS 105, for micro-entities
FRS 105 is the simplest UK accounting standard. Assets are shown at cost without revaluation, and the accounts need only a handful of notes. At Companies House, a micro-entity files only its balance sheet. It does not file a profit and loss account or a directors’ report.
FRS 102 Section 1A, for small companies
A small company follows the full recognition and measurement rules of FRS 102 but with fewer disclosures. It can choose not to file its profit and loss account or directors’ report at Companies House. With the agreement of all its members, it can also file abridged accounts. FRS 102 was revised for accounting periods beginning on or after 1 January 2026. Among the changes are a new model for recognising revenue and bringing most significant leases onto the balance sheet. A company that leases premises or vehicles may see its balance sheet change as a result.
Audit exemption
A private company that meets two of the small company tests can usually claim exemption from audit. Some cannot claim it whatever their size, including public companies and those in banking or insurance. Shareholders holding at least 10% can also require an audit by writing to the company at least one month before the year end.
The confirmation statement
The confirmation statement is a check that Companies House holds the right details for the company: its officers, shareholders, people with significant control and registered address. It must be filed at least once every 12 months, and no later than 14 days after the review period ends. The company also has to give a registered email address and confirm that its intended future activities are lawful. Failing to file can lead to a fine of up to £5,000 and the company being struck off.
Companies House changes: in force and scheduled
In force now:
- Identity verification has been a legal requirement for directors and people with significant control since 18 November 2025. An existing director gives their personal code with the company’s next confirmation statement, which Companies House will not accept until every director is verified. Verification for people who file on a company’s behalf is to follow at a later date.
- HMRC’s online service for filing accounts and the Company Tax Return together closed on 31 March 2026. Accounts can still be filed at Companies House online, on paper or through software.
Scheduled for 1 April 2028:
- Accounts can only be filed through commercial software, in iXBRL. The web and paper routes close for accounts.
- Directors claiming audit exemption give a strengthened statement.
- The component parts of the accounts and reports must be filed together.
- A company that wants to shorten its accounting reference period more than once in five years needs a business reason.
Paused: On 23 October 2026 the government paused the plan to make small and micro companies file a profit and loss account. Abridged accounts, and the option to leave out the profit and loss account, remain. Companies House publishes the latest position in its accounts guidance.
Sole traders and partnerships
Sole traders and partnerships file nothing at Companies House. Their year-end figures go into Self Assessment, with the online return for 2025-26 due by 31 January 2027.
- Tax year basis. From 2024-25, profits are taxed as they arise in the tax year. A business with an accounting date other than 31 March or 5 April has to apportion profits from two accounting periods.
- Cash basis. This is now the standard method for sole traders and for partnerships without corporate partners. Traditional accounting is still available if it suits the business better.
- Partnerships. The nominated partner files the partnership return and keeps the partnership’s records. Each partner then pays tax on their own share.
Where qualifying income is above the Making Tax Digital threshold, quarterly digital updates are also needed during the year. See bookkeeping.
What we do
- Prepare statutory accounts under FRS 105 or FRS 102 Section 1A, and decide with you what is filed publicly.
- Check the company’s size category and whether it can claim audit exemption.
- File the accounts at Companies House after you approve them, and prepare the Corporation Tax return alongside.
- Remind you when the confirmation statement and director identity verification are due.
- For sole traders and partnerships, prepare the year-end figures and apportionments for Self Assessment.
What we need from you
- Bookkeeping records and bank statements for the whole year.
- Year-end stock, work in progress, debtors and creditors, and assets bought or sold.
- Loan, lease and hire purchase agreements.
- For companies, dividends declared and board minutes.
- The Companies House authentication code, where we file for the company.
Common questions
Are the Companies House accounts and the Company Tax Return the same thing?
No. The statutory accounts go to Companies House, where most of what is filed becomes public, and are due 9 months after the year end for a private company. The Company Tax Return goes to HMRC, with a full set of accounts and the tax computation attached in iXBRL, and is due 12 months after the end of the accounting period. They are usually prepared together.
My company has not traded this year. Does it still need to file accounts?
Yes. Every limited company has to deliver accounts to Companies House, whether it traded or not, and file a confirmation statement. A company that qualifies as dormant and small does not need an audit and can file a much simpler set of accounts. It may still need to tell HMRC it is dormant for Corporation Tax.
Will my small company have to publish its profit and loss account?
Not at present. A micro-entity files only its balance sheet at Companies House, and a small company can choose not to file its profit and loss account or directors' report. A plan to require small and micro companies to file a profit and loss account from April 2028 was paused on 23 October 2026, and the government has said abridged and filleted accounts will remain available.
What happens if we miss the Companies House deadline?
A civil penalty applies automatically, starting at £150 for a private company up to one month late and rising to £1,500 at more than six months. It doubles if the accounts were also late the previous year. Late filing is also a criminal offence for which directors can be prosecuted. An extension can be requested only before the deadline, and only where an unplanned event has prevented filing.
Does my small company need an audit?
Usually not. A private company that meets two of the small company tests (turnover of £15 million or less, a balance sheet total of £7.5 million or less, 50 or fewer employees) can normally claim exemption, for financial years beginning on or after 6 April 2025. Some companies, such as those in banking or insurance, must be audited regardless, and shareholders holding at least 10% can require one.
Do sole traders need to prepare accounts?
Nothing is filed at Companies House, but a sole trader still has to work out the profit for each tax year and report it on the Self Assessment return. The cash basis, which records money when it is received or paid, is now the standard method. Since 2024-25, profits are taxed by tax year, so an accounting date other than 31 March or 5 April means apportioning profits between years.
Related
Corporation Tax
Corporation Tax computations and CT600 returns for limited companies, prepared from the year-end accounts and filed in iXBRL.
Bookkeeping
Bookkeeping kept current through the year, reconciled to the bank and ready for VAT, Making Tax Digital and the year end.
Self Assessment
Preparing and filing personal tax returns for the self-employed, landlords, partners and anyone with income outside PAYE.
Talk to us about what you need
Tell us what you have to do and by when. We will explain what is involved and send you a fixed-fee quote, agreed in writing before any work starts.