Other Important Issues - Filing of Returns

Please note that these rules also apply to Limited Liability Partnerships.

Accounts

All companies must file accounts with Companies House within 10 months of the accounting reference date, but it must be remembered that the maximum period allowed for a company's first accounts is 22 months from the incorporation date. This may reduce the usual 10 month period if the first accounting period is extended beyond twelve months. Beware that the 22 month rule applies from the incorporation date itself, not the ARD. This rule often catches out uninformed directors who expect to file their accounts by the end of the 22nd month.

Example:

• A company is incorporated on 12th May 2002. It sets an accounting reference date of 31st October so its first accounts will cover the period from incorporation to 31st October 2003.
• The first accounts must be filed by 12th March 2004 – 22 months from the date of incorporation.
• The second financial year will end on 31st October 2004, and accounts for this period will have to be filed by 31st August 2005 – 10 months from the last ARD.

There are automatic financial penalties imposed by Companies House in respect of late filing of accounts. Such fines can be as high as £1000 in extreme cases, and our experience shows that it is virtually impossible to defend against these penalties once they have been imposed.

At present, companies with a turnover not exceeding £1,000,000 per annum do not need to appoint auditors or produce fully audited accounts. We expect this figure to rise in due course as new legislation is introduced.

Annual Returns

In addition to accounts, every company must also file an Annual Return Form 363 with Companies House each year. The date of the Annual Return is each anniversary of the date of incorporation.

Companies House provide a “shuttle return” service whereby your Form 363 is sent to the registered office in advance of the return date. However, whilst it may appear at first glance that this form is complete, this is often not the case, particularly with a company’s first return, as there are usually no share details.

Our experience with clients is that all too often an Annual Return is filed by a company only to be rejected by Companies House because it is incorrect or incomplete.

Company Registrations Online provides a comprehensive Annual Compliance Service which will assist in the annual preparation of your Annual Return, ensuring it is correctly competed and filed on time. We would urge you to consider this facility so as to ensure that your routine filings are always up to date.

Click here for more information about our Annual Compliance Service.