Annual Accounts – FAQs Q1. What are annual accounts and which businesses need to file them? Annual accounts are a formal summary of a company's financial activity over its accounting year, including a balance sheet, profit and loss account, and supporting notes. Every UK limited company and LLP must file annual accounts with Companies House, and most must also submit them to HMRC alongside the corporation tax return. Sole traders and ordinary partnerships do not file accounts publicly but still need accurate accounts to complete their Self Assessment returns. Q2. What is the deadline for filing annual accounts at Companies House? For a private limited company, accounts must be filed at Companies House within nine months of the company's accounting reference date (year-end). For a first set of accounts after incorporation, the deadline is 21 months from the date of incorporation. Late filing triggers automatic penalties starting at £150 and rising to £1,500, doubled if you are late two years in a row. Atlas Tax Advisors tracks every client deadline carefully to avoid these costs. Q3. What is the difference between FRS 102 and FRS 105 accounts? FRS 105 is a simplified standard for micro-entities, while FRS 102 applies to small and medium-sized companies. A company qualifies as a micro-entity if it meets two of three tests: turnover under £1 million, balance sheet total under £500,000, and 10 or fewer employees. FRS 105 accounts are shorter and disclose less detail, while FRS 102 gives a fuller picture useful for lenders and investors. We help you choose the right framework for your goals. Q4. How much does it cost to have annual accounts prepared in Milton Keynes? Fees depend on company size, transaction volume, the quality of underlying records, and whether bookkeeping is also required. A small, well-organised limited company on cloud software typically costs less than a business handing over a year of paper receipts. Atlas Tax Advisors always quotes a fixed fee upfront based on your specific circumstances, so you know exactly what to expect. Many clients save money by combining accounts with our bookkeeping and corporation tax services. Q5. Do I still need to file accounts if my company has been dormant? Yes. Even a dormant company must file dormant company accounts at Companies House every year, plus a confirmation statement. The accounts are very simple but the deadline is just as strict, with the same penalties for late filing. We can prepare and file dormant accounts at a reduced fixed fee, which keeps your company compliant and the corporate name protected for future use without unnecessary cost or administrative hassle. Q6. What records do I need to keep to prepare annual accounts? You should retain all sales invoices, purchase invoices and receipts, bank statements, PAYE records, VAT records, mileage logs, contracts, loan agreements, and any documents supporting unusual transactions. HMRC requires limited companies to keep records for at least six years from the end of the accounting period, and longer if items relate to capital allowances. Cloud accounting software makes this far easier and is essential for Making Tax Digital compliance. Q7. Can you file my accounts with both Companies House and HMRC? Yes, this is a standard part of our annual accounts service. We prepare a single set of accounts in iXBRL format and file with Companies House and HMRC using approved software, alongside your CT600 corporation tax return. This avoids duplication, ensures both filings remain consistent, and meets every formatting requirement. Clients across Milton Keynes appreciate having one accountant handle both filings under a single fixed fee with clear, prompt communication. Q8. What happens if there are errors in my filed annual accounts? If a material error is discovered, accounts can usually be amended and refiled with Companies House and HMRC within strict time limits. However, refiling can attract HMRC scrutiny and concern from lenders or investors, so it is far better to get accounts right first time. Atlas Tax Advisors uses multi-stage internal review on every set of accounts, including a partner-level final check, so errors are caught long before figures leave our office. Q9. Will preparing annual accounts help me reduce my corporation tax bill? Yes, accounts and corporation tax planning are deeply connected. The way capital allowances are claimed, expenses categorised, directors' remuneration structured, and provisions recognised can all directly affect your taxable profit. With corporation tax now charged at 19% to 25% depending on profit levels, even modest planning at year-end can save meaningful sums. Our team integrates tax planning with accounts preparation so legitimate savings are captured before the year-end window closes. Q10. Can I switch accountants mid-year and have you prepare my next accounts? Absolutely, and switching is far simpler than most business owners expect. We contact your previous accountant with a professional clearance letter, request your records, and bring everything across to our systems within a week or two. There is no gap in service and no need for awkward conversations on your side. Many Milton Keynes clients move to us for clearer communication, faster turnaround, and a more proactive approach to tax planning.