Your Company Year End is an accountancy term for the documents your company is required to file at the end of every accounting year. Your Year End will initially be 12 months from when you incorporated, although this can be changed.
There are two mandatory documents which are included with every submission. A CT600 Return and an Abbreviated Accounts form.
Your companys CT600 is essentially an overview of its income after expenses and tax allowances have been deducted. The remaining figure which signifies your companys profits will then determine what Corporation Tax your company is liable to pay.
Your Abbreviated Accounts are details of your companys finances which are displayed to the public. Your companys cash, assets, debtors etc. are all factors which can be made available to the public upon request from Companies House.
What do you need to prepare?
Before we can complete these forms you will need to ensure your account is fully up to date to certify that your records are an honest and accurate reflection of your companys finances.
Get your expenses in order:
Every pound you claim as a legitimate business expense is a pound off your taxable profit and means a reduction in your Corporation Tax payment. There are a whole host of expenses you may not necessarily know you can claim for so reference our Help Centre information article here.
Round up any lingering invoices, we need your accounts to be as accurate as possible, so make sure you chase up all outstanding debts. Also bear in mind that you need to allow your clients enough time to make their payments before the year end.
Collect all your paperwork!
Paperwork is the glue that holds your accounts together. Youll need to provide a bank statement for your bank account(s) and from all suppliers, credit card statements and records of any additional income you receive. This is also a valuable way of making sure that all of your expenses are accounted for, by cross referencing the statements with your supplier accounts. You'll also need to ensure all payments you made personally if you are a director are documented (such as on a spreadsheet or within your accounting software).
Make sure you leave enough time to comfortably prepare for your Year End accounts as HMRC are particularly severe when it comes to late penalties on this.
If you are VAT registered and on either the Flat Rate or the Standard Rate scheme, it is likely that you will have a VAT return coinciding with your Year End account submission. This makes it doubly important to sufficiently manage your time.