Filing Tax Returns and Accounts for a Private Limited Company: A Guide
The government has launched a new web portal where you can file your accounts and Company Tax returns online. You can use this service to file your tax return with HM Revenue & Custom.
If you’re a charity or unincorporated association
The Companies House Online Services are now open for charities and unincorporated associations to use. This includes filing your Annual Return, Accounts and Application forms.
There are three main types of registered charity – a Registered Charity, a Company limited by guarantee and a Public benefit corporation. Each type of charity has different requirements for setting up a company.
A Registered Charity must comply with strict rules around things like transparency, accountability and financial management. A Company limited by guarantee needs to provide a legal guarantee for creditors. A public benefit corporation doesn’t need to pay dividends or distribute profits.
Companies House provides free basic information about companies based in the UK. You’ll need to register your company with Companies House if it is carrying on trade within the UK.
If you work for a non-profit organization,
The Companies Houseonline filing systemis now open to companies registered outside the UK. This includes those based overseas.
You must use the online filing systemif you are a company that meets one of the following criteria:
• You are required to file accounts under section 476 of theCompanies Act 2006.
• Your income exceeds £150,000 per annum.
• You are a charity.
• You are subject to a statutory audit requirement.
• You are listed on the London Stock Exchange.
Online accounting and tax returns
If you are self-employed, it might make sense to combine your personal and business finances into one place. This could include filing both your personal and business tax returns together. There are no additional costs involved in doing this, but you do need to ensure that you are eligible to file jointly. If you are a sole trader, you can choose to file either individually or jointly.
You can file your personal and business taxes separately, or you can file them together. In some cases, you may be able to claim expenses related to your business on your personal income tax return. However, there are limits to what you can claim. For example, you cannot claim expenses relating to your home office, unless you use it exclusively for work purposes.
The best way to find out whether you can claim certain expenses is to speak to your accountant. They can advise you about how much you can claim and help you understand the rules around claiming expenses.
Frequently Asked Questions
When is your yearly return and accounts due?
The submission period varies according to the type of society:
Registered societies (including co-operatives and community benefit organizations) must submit their annual reports and accounts within seven months after the end of the fiscal year. They must send it by mail or electronically.
Societies registered under the Friendly Society Act of 1992 are required to send accounts and annual returns by the 30th of June each year, or 14 days before the AGM, whichever is later. They must send it by postal service or electronically. If they do not, the regulator may levy a punishment of up to £10,000.
Societies registered under the Friendly Societies Act of 1973 are required to send accounts and reports by July 31st of each calendar year. They must do so either by mail or electronically. Failure to comply may result in fines of up to £5,000.
What if I don’t file my yearly reports on time?
You might think it’s too late to worry about your annual accounts now, but there’s still plenty of time left to do your 2018/19 accounts. If you haven’t filed yours yet, here’s what happens if you miss the deadline.
The law says you must file your annual accounts within three months of 31st December, unless you’re exempt from doing so. This includes all companies and limited partnerships registered under the Companies Act 2006.
If you fail to file your accounts by the end of the deadline, both Companies House and HM Revenue & Customs (HMRC) will take action against you.
Companies House has set out the penalties for failing to file your annual accounts on time. You could face fines of up to £1,000 per day, starting on the second day after the deadline passes.
HMRC has similar rules, although the fine amounts are much lower. They start at £100 for every day you’re late.
For example, if you missed the deadline by just one day, you’d pay £500. But if you missed it by five days, you’d owe £2,500.
If you can’t afford to pay the penalty, you’ll lose your registration. And if you’re found guilty of breaching section 806 of the Companies Act 2006, you could even find yourself facing criminal charges.
