Company Accounts Requirements

Key facts

Statutory accounts must accompany the CT600 when filed with HMRC (in iXBRL format).
Micro-entities (FRS 105) can file very simple accounts with minimal disclosure.
Small companies (FRS 102 Section 1A) can file abridged accounts at Companies House.
Companies exceeding the audit threshold must have their accounts independently audited.

What Are Statutory Accounts?

Statutory accounts (also called “annual accounts”) are the formal financial statements a company must prepare at the end of each financial year. They give a “true and fair view” of the company’s financial position and performance.^[1]

A full set of statutory accounts typically includes:

A balance sheet (statement of financial position)
A profit and loss account (income statement)
Notes to the accounts (explaining the figures and accounting policies)
A directors’ report (for companies that are not small)

These accounts must be approved by the board of directors and signed by a director on behalf of the board.

Accounting Frameworks by Company Size

The UK uses different accounting standards depending on the size of the company:^[1]

Category	Standard	Thresholds (must meet 2 of 3)
Micro-entity	FRS 105	Turnover ≤ £632,000, assets ≤ £316,000, employees ≤ 10
Small company	FRS 102 Section 1A	Turnover ≤ £10.2m, assets ≤ £5.1m, employees ≤ 50
Medium company	FRS 102 (full)	Turnover ≤ £36m, assets ≤ £18m, employees ≤ 250
Large company	FRS 102 (full) or IFRS	Exceeds medium thresholds

Micro-Entity Accounts (FRS 105)

The simplest option. Micro-entity accounts include only a balance sheet and a profit and loss account, with very limited notes. There is no requirement for a directors’ report, and the accounts can use simplified formats.^[1]

Small Company Accounts (FRS 102 Section 1A)

Small companies prepare accounts under FRS 102 Section 1A, which requires somewhat more disclosure than FRS 105 but still allows simplified formats. At Companies House, small companies may file abridged accounts (omitting the profit and loss account).^[2]

HMRC always gets full accounts. While Companies House allows small and micro companies to file abbreviated or abridged accounts, HMRC requires the full statutory accounts with the CT600 — including the profit and loss account.^[4]

Audit Requirements

Not all companies need an audit. A company is exempt from audit if it qualifies as small and meets at least two of the following in the financial year:^[3]

Annual turnover of no more than £10.2 million
Balance sheet total of no more than £5.1 million
No more than 50 employees

However, certain companies must be audited regardless of size:

Public companies (PLCs)
Companies that are part of a group that is not small
Companies in regulated industries (e.g. banking, insurance, authorised by the FCA)
Companies where shareholders holding at least 10% of shares request an audit

Filing Accounts

Statutory accounts must be filed in two places:^[2]

Filed With	Deadline	Format
Companies House	9 months after the accounting reference date (private companies)	PDF, XHTML, or iXBRL (for online filing)
HMRC	12 months after the end of the accounting period (with the CT600)	iXBRL only

The Companies House deadline is earlier than the HMRC deadline, so companies typically prepare accounts in time for the Companies House filing and then attach them to the CT600 later. HMRC-recognised software such as GoFile’s Corporation Tax filing tool attaches the iXBRL accounts when you submit the return.

Late filing penalties at Companies House are separate from HMRC penalties and are automatically imposed. A private company that files one day late at Companies House receives a £150 penalty, rising to £1,500 for being more than 6 months late.^[2]

Accounts and the CT600

The statutory accounts are a key attachment to the CT600 return. HMRC uses them to verify the figures in the tax computation. The main points to remember are:^[4]

Accounts must be in iXBRL format when submitted to HMRC
The accounts must cover the same period as the CT600 (or the same period of account if accounts cover a long period that is split into two CT accounting periods)
The accounting profit in the accounts should reconcile to the starting point in the tax computation
If accounts are restated after filing, an amended CT600 should be submitted with the revised accounts

Frequently Asked Questions

What accounts must a limited company file?

Every limited company must prepare statutory accounts including a balance sheet, profit and loss account, and notes. These must be filed with Companies House within 9 months and with HMRC (in iXBRL format alongside the CT600) within 12 months of the accounting period end.

Does my small company need an audit?

No, if your company meets at least two of: turnover no more than £10.2 million, balance sheet total no more than £5.1 million, and no more than 50 employees. Public companies and companies in non-small groups must always be audited.

What is the difference between micro-entity and small company accounts?

Micro-entities (FRS 105) can file very simple accounts with minimal disclosure — just a balance sheet and profit and loss account. Small companies (FRS 102 Section 1A) require more detail but can still file abridged accounts at Companies House.

What happens if I file company accounts late?

Late filing at Companies House triggers automatic penalties starting at £150, rising to £1,500 if more than 6 months late. HMRC also imposes separate penalties for a late CT600, starting at £100.

Sources

Prepare annual accounts for a private limited company — GOV.UK
Life of a company: annual requirements — GOV.UK
Audit exemption for private limited companies — GOV.UK
File your accounts and Company Tax Return — GOV.UK