Excel Accountants | Liverpool Accountants

I Own a Company – What Are My Legal Requirements?

In the United Kingdom, companies must prepare and file annual accounts to Companies House as part of their legal obligations. The specific requirements for annual accounts vary depending on the type of company and its size.

Qualifying As A Small Company

For accounting periods after 1st January 2016, private limited companies with an annual turnover of less than £10.2 million, a balance sheet total of less than £5.1 million, and fewer than 50 employees on average are considered small companies. Small companies have different reporting requirements than larger companies. 

Generally, all companies in the UK must prepare and file annual accounts that include the following:

  • Balance Sheet

    This is a snapshot of the company's financial position at a specific point in time, showing its assets, liabilities, and equity.

  • A Profit And Loss Account

    This shows the company's revenues, expenses, and profit or loss over a specific period of time.

  • A Directors' Report

    This report is prepared by the company's directors, providing information about the company's business and performance.

  • An Auditor's Report

    This is prepared by the company's auditor that provides an independent opinion on the accuracy of the annual accounts. Small companies can take advantage of being exempt from having an auditors report.

In addition to preparing and filing annual accounts, companies in the UK must also submit their accounts to Companies House, the government agency responsible for maintaining records of UK businesses.

It’s important to note that these are general guidelines, and there may be additional requirements for specific companies or industries. It’s always a good idea to seek independent advice tailored to your company.

If you need clarification on the reporting standards your company must follow whilst trading in the UK, speak to one of our accountants in Liverpool, who can assist you further.

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Looking for tailored advice? Contact the team in Liverpool today to see how we can help take your business to the next level.