You might be able to send simpler (‘abridged’) accounts to Companies House and not need to be audited. This depends on whether your company is dormant or qualifies as a small company or ‘micro-entity’.

You must still send statutory accounts to your members and to HM Revenue and Customs (HMRC) as part of your Company Tax Return if you’re a small company or micro-entity.

​

Small Companies:

​

Your company will be ‘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 company is small, you can:

​

• use the exemption so your company’s accounts do not need to be audited.

• choose whether to send a copy of the director’s report and profit and loss account to Companies House.

• send abridged accounts to Companies House.

 

Sending abridged accounts:

​

You can only send abridged accounts if all your company members agree to it.

Abridged accounts must contain a simpler balance sheet, along with any notes. You can also choose to include a simpler profit and loss account and a copy of the director’s report.

The balance sheet must have the name of a director printed on it and must be signed by a director.

Sending abridged accounts means less information about your company will be publicly available from Companies House.

​

Micro-entities

​

Micro-entities are very small companies. Your company will be 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, you can:

​

• prepare simpler accounts that meet statutory minimum requirements.

• send only your balance sheet with less information to Companies House.

• benefit from the same exemptions available to small companies.

 

There are other reporting duties which, although not technically part of year-end reporting, can be done at the same time for the sake of convenience. These are your VAT returns (if the company is VAT-registered) and your Confirmation Statement.

​

VAT returns

​

Your VAT return (if you need to submit one) will probably be due at your financial year end, so it makes sense to roll this process into your year-end reporting activities.

 

Confirmation Statement

​

By law you must confirm your company information with Companies House on an annual basis (failure to do so may be deemed a criminal offence). You must file the statement within 14 days of its due date, which is a year after either your incorporation date, or the date of the previous statement. You must do this even for a dormant company.

 

Dormant companies

​

Your company is called ‘dormant’ by Companies House if it’s had no ‘significant’ transactions in the financial year that you’d normally report.

​

Significant transactions do not include:

​

• filing fees paid to Companies House.

• penalties for late filing of accounts.

• money paid for shares when the company was incorporated.

 

Dormant companies that qualify as ‘small’ do not need to be audited.

​

Check if your company is also dormant for Corporation Tax.