Limited Company Accounts Checklist

Key filing deadlines for limited companies

Private limited companies usually need to file annual accounts with Companies House 9 months after the company’s financial year ends. First accounts are normally due 21 months after the company was registered. Corporation Tax is usually due 9 months and 1 day after the accounting period ends, and the Company Tax Return is due 12 months after the accounting period ends.

These deadlines are separate, so directors should not wait until the Company Tax Return deadline before preparing accounts.

Bank and bookkeeping records

The first thing to prepare is your bookkeeping. Your bank transactions should be reconciled, and every transaction should be explained.

You should provide bank statements, business credit card statements, loan statements, finance agreements, PayPal or Stripe reports, cash records and transfer details.

If business and personal spending are mixed, this should be clearly identified before accounts are prepared.

Sales and income records

Your accountant will need complete sales records. This may include sales invoices, online sales, cash sales, card payment reports, Stripe or PayPal reports, marketplace income, credit notes, refunds and customer deposits.

Income should be recorded in the correct accounting period. Missing income can create inaccurate accounts and tax calculations.

Expense records

You should also prepare supplier invoices, receipts, subscriptions, software bills, rent, utilities, insurance, travel costs, office costs, marketing costs, accountancy fees, professional subscriptions, repairs, equipment purchases and subcontractor costs.

Business expenses should be supported by records. A bank payment alone may not always show what was purchased.

Payroll and pension records

If your company runs payroll, prepare payroll summaries, payslips, PAYE records, P60s, pension contribution reports and HMRC payment confirmations.

Payroll figures in the accounts should agree with payroll records.

VAT records

If your company is VAT registered, prepare VAT Returns, VAT workings, VAT payment records, VAT reports and VAT reconciliation details.

VAT should be checked against the bookkeeping before accounts are finalised. Unreconciled VAT is a common source of year-end problems.

Director loan account

The director loan account records money borrowed from or lent to the company by directors.

This includes personal expenses paid by the company, business expenses paid personally, cash withdrawals, salary credited, dividends credited, repayments and money introduced to the company.

An overdrawn director loan account can create tax issues, so it should be reviewed before accounts are finalised.

Dividends

If dividends were paid, the company should have dividend vouchers, board minutes, shareholder details, dividend dates and amounts.

Dividends should only be paid from available distributable profits. Treating withdrawals as dividends without checking profits can create problems.

Assets, stock and work in progress

If your company owns assets, prepare details of laptops, vehicles, tools, equipment, furniture, machinery, fixtures and finance agreements.

If your business carries stock or has unfinished work, year-end stock and work-in-progress values may also be needed.

Common limited company accounts mistakes

Common mistakes include:

• missing bank accounts
• mixing personal and business expenses
• incorrect dividend treatment
• poor director loan records
• unreconciled VAT
• missing payroll records
• failing to record assets
• leaving accounts until the deadline

How DepoTax can help

DepoTax can help with annual accounts, Corporation Tax returns, bookkeeping cleanup, VAT reconciliation, payroll reconciliation, director loan account review, dividend review, Companies House filing and HMRC filing.