Annual Accounts & Tax Returns
If you’re a private limited company registered in the United Kingdom, then you’re liable to pay 19 percent corporation tax on your profits to the HM Revenue & Customs (HMRC). You also have to submit a set of accounts to Companies House each year to show what the business has been doing.
Operating a limited company can be seen as the professional way to do things when getting bigger contracts and with bigger companies, but at the same time there is a lot to think about to remain competitive, profitable and compliant.
What are Annual Accounts & Corporation Tax?
Annual accounts are special accounts that are created to show how a company is doing. The purpose of these accounts is to report the company’s financial position to Companies House who display them online for the public to see as a matter of record. It is also used as the starting place to work out the corporation tax amount that the company has to pay to the HMRC.
Corporation tax is an income tax on the profit of a limited company, and currently charged at 19% for all UK businesses. Each year a limited company is required to submit a tax return detailing income, expenses and resulting profit or loss. This goes to HMRC with a copy of the Annual accounts.
What do I need to do?
You need to keep a record for the company of all income and expenses of the business. You are also required to show what assets the business owns, who owes you money and what money you owe.
Unlike sole traders, limited companies also need to be able to show this income and expense detail when it was incurred, rather than received or paid. They can not use cash basis accounting for their annual accounts and tax.
What do you do?
We will work with you to make sure that you know how records need to be kept. We will set you up on Quickbooks or Xero and also give you access to Receipt-Bank so that your purchases can be easily emailed, scanned or snapped in.
At the end of your financial year we will take the bookkeeping from Quickbooks or Xero, ask you for a few other records such as bank statements or stock takes. We will then make sure that everything is recorded accurately and in the correct way for Companies House. We will first give you an estimate of the corporation tax owing, once Company House accounts are finalised. We will then work further to make sure that anything that can not be claimed against income for your tax return is removed. We will also add any capital expenditure that can be deducted from your income as agreed. by HMRC.
Finally we will get you to authorise the tax return, file it and advise you how much is owed. If you use other services like our tax reviews, we can help you earlier in the year to make sure that all tax efficiencies are thought about.
Why Brighter Futures Accountancy?
We work with small companies across Hertfordshire as well as other areas in East of England. This means we have experience to a range of industries and can help you accordingly. Each client gets an account manager who will work with them, along with others in our team. This means that you have someone to contact for any queries, and you know who is dealing with it at any given time.
With 25 Years with our current accountant, it was time consuming just trying to get hold of them, never returned our telephone calls and they had no knowledge of IT or computers.(Old School accountants)
That’s when we found Vicky & Shane. Vicky came to visit us at our offices, where we agreed to change. However on viewing our accounts, they found issues with our HMRC records and overpayments.
Since then, we have built a very good partnership, and support service, where they both take an interest in provide tax saving and support on our online accounting systems.
I would highly recommended anyone looking to change accountants
to contact Brighter Futures Accountancy who will resolve any issue you have .
OUTSTANDING Paul Care Agency Owner