Annual accounts
Annual accounts are the statutory financial statements every limited company must prepare after its year end: a balance sheet, a profit and loss account and notes. They are filed at Companies House and form the starting point for the corporation tax return.
Also known as: statutory accounts, year end accounts
How it works
Every company, trading or not, must prepare accounts for each accounting period and file them at Companies House. Small and micro-entity companies prepare them under FRS 102 Section 1A or FRS 105, which keeps the disclosure short, but the accounts still have to give a true and fair view and be approved and signed by a director.
Two versions usually exist. The full accounts, including the profit and loss account, go to HMRC with the CT600 and to the shareholders. Companies House receives the statutory set required for your company size. Under the Economic Crime and Corporate Transparency Act the exemptions have narrowed, so expect more of the picture to be public than used to be the case, and check what your company must now file.
The deadline for a private company is nine months after the accounting period end, or twenty-one months after incorporation for a first set. Penalties are automatic: £150 for up to a month late, rising with delay, and doubled if the previous year was also late. There is no appeal for simply running out of time.
Accounts are also the document your bank, your mortgage lender and any buyer of the business will read. Filing the bare minimum on time is compliance; having figures that stand up to questions is what makes them useful.
Who this affects
- Every limited company, including dormant ones, which still file simplified accounts
- Directors applying for a mortgage, where lenders want two or three filed years
- Companies approaching audit or small-company size limits
- Anyone preparing to sell, where filed accounts drive the buyer's first view of value
Common mistakes
- Leaving the bookkeeping until the deadline month and filing figures no one has reviewed
- Assuming a dormant company has nothing to file
- Missing that a late filing last year doubles this year's penalty
Frequently asked questions
When are limited company accounts due?
Nine months after the end of the accounting period at Companies House, or twenty-one months after incorporation for a first set. HMRC needs the accounts with the CT600 twelve months after the period end.
What is the penalty for filing late?
It starts at £150 for up to a month and increases with the delay. The penalty doubles if accounts were also filed late in the previous financial year.
Do dormant companies file accounts?
Yes. A dormant company files simplified dormant accounts at Companies House and, if HMRC has issued a notice, still deals with the corporation tax position.
Can I prepare the accounts myself?
There is no legal requirement to use an accountant, but the accounts must comply with the relevant standard and the tax computation must be right. Errors surface later in enquiries and lending applications.
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Reviewed by Waqas Sagar ACA FCCA FMAAT · Last reviewed 13 September 2026 · Figures for 2026/27 · About our practice
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