Examples Of Annual Accounts
- Adil Akhtar
- Apr 30
- 16 min read
Understanding Annual Accounts in the UK: 2025 Practical Examples for Taxpayers and Businesses
If you're wondering what exactly are examples of annual accounts in the UK for 2025, here’s the straight answer: Annual accounts (also called "statutory accounts") are official financial documents that limited companies must prepare at the end of each financial year, showing a company's performance and financial position. In 2025, the formats and obligations are guided by UK law (Companies Act 2006) and updated HMRC and Companies House requirements.
Whether you're running a business or just trying to get your personal tax right, understanding annual accounts matters. Let’s dive into real examples, current figures, and practical insights every UK taxpayer and business owner needs — using 2025-accurate data straight from GOV.UK.
What Annual Accounts Include (As of 2025)
Here’s what a standard set of annual accounts typically consists of:
Balance sheet – Shows what the company owns, owes, and shareholders' equity on the last day of the financial year.
Profit and loss account – Summarises income, expenses, and profits or losses.
Notes to the accounts – Additional details explaining certain figures.
Director’s report – (for larger companies) overview from the board.
Auditor’s report – If the company isn’t exempt from audit.
Small companies (those meeting two of: turnover ≤ £10.2 million, balance sheet total ≤ £5.1 million, ≤50 employees) can submit abbreviated versions known as micro-entity accounts.
Quick Refresher: Tax Figures You Must Know for 2025/26
In 2025, your personal tax and business account prep are shaped by these key numbers:
Type | Threshold |
Personal Allowance | £12,570 |
Basic Rate (20%) | £12,571 – £50,270 |
Higher Rate (40%) | £50,271 – £125,140 |
Additional Rate (45%) | Over £125,140 |
National Insurance (NI) Contributions for employees (Class 1) still apply at:
12% on earnings between £12,570 and £50,270
2% on earnings over £50,270
Check your current tax codes and personal allowance if unsure — this directly affects whether your PAYE deductions are correct!
Example 1: Small Business Annual Accounts (Micro-Entity)
Case Study: Kenneth Webb, founder of Webb Artisan Bakery Ltd.
Company turnover: £85,000
Assets: £25,000 (mostly baking equipment and a small delivery van)
Employees: 2 part-timers
Year-End Date: 31 March 2025
Annual Accounts Prepared:
Micro-entity accounts submitted because turnover < £632,000 and ≤10 employees.
No need for an external audit.
Balance sheet showed:
Assets: £25,000
Liabilities: £5,000 (loan repayments)
Shareholder equity: £20,000
Tax Impact:
Corporation Tax calculated on profits (£85,000 sales - £30,000 expenses = £55,000 taxable profit).
Corporation Tax Rate for 2025: 25% for profits >£50,000 (confirmed under HMRC Spring Budget 2025).
Tax owed = 25% of £55,000 = £13,750.
Kenneth’s Tip:“Hey, don’t sweat it — I used HMRC’s free templates, kept digital records, and submitted on time. No fines!”
How Errors in Annual Accounts Can Trigger Emergency Tax (And How to Fix It)
PAYE Real-Time Information (RTI) errors are still one of the biggest causes of wrong tax deductions in 2025.
For example:
Your employer incorrectly reports your salary
HMRC assigns you a BR emergency tax code
You get taxed 20% on all earnings, missing your £12,570 personal allowance!
Fixing It:
Check your tax code here: Check tax code - GOV.UK
Contact HMRC directly or ask your employer to fix their PAYE submission.
Refunds are usually automatic within 30 days after correction — but you can claim quicker by filling a P800 form if it drags.
Example 2: Freelancer Annual Accounts (Sole Trader Using Cash Basis)
Case Study: Harriet Drummond, freelance graphic designer
Total income: £28,000
Expenses: £6,500 (laptop, software, co-working space membership)
Tax Year: 6 April 2024 – 5 April 2025 (filed by 31 January 2026)
Annual Accounts Prepared:
Cash basis accounting chosen (allowed if turnover < £150,000).
Simple income and expenses report — no need for complicated adjustments for unpaid invoices.
Net taxable income = £28,000 - £6,500 = £21,500.
Tax Payable:
£8,930 of taxable income falls within 20% basic rate band (after personal allowance applied).
Income tax = 20% of £8,930 = £1,786.
Harriet’s Tip:"Cash basis saved my life — no messy spreadsheets. And claiming expenses directly cut my tax by almost £1,000!"
Real Talk: What Happens If You Miss the Annual Accounts Deadline in 2025?
Hey, don't leave it until the last minute!
Companies House penalties for late filing (as of April 2025):
Delay | Penalty |
Up to 1 month late | £150 |
1–3 months late | £375 |
3–6 months late | £750 |
More than 6 months | £1,500 |
If you file late two years in a row — the fines double. Ouch.
Plus, HMRC may impose separate fines for late Corporation Tax returns.
Always plan at least three months ahead of your company year-end!
Example 3: Dormant Company Annual Accounts
Case Study: Arthur Penrose, owner of a dormant company Penrose Tech Ltd.
Company status: Dormant (no trading, no income)
Year-End Date: 31 December 2024
Annual Accounts Prepared:
Only submitted a Dormant Company Accounts (DCA) to Companies House.
No profit & loss account needed.
Still had to file a Confirmation Statement (formerly Annual Return).
Arthur’s Tip:"Even if you make £0, you still gotta file. I used the free WebFiling service — 10 minutes flat!"
Emergency Tax and Refund Scenarios in 2025: How Annual Accounts Matter
If your employer or pension provider submits wrong figures, your PAYE tax deduction might:
Skip your personal allowance
Apply wrong tax bands
Charge you emergency tax
Annual accounts (or Self Assessment summaries for freelancers) back up your claim when disputing tax errors.
✅ Always keep:
P60s
Payslips
Annual account summaries
HMRC letters
It makes refund claims faster, with less back-and-forth.
Real-World Medium Business Annual Accounts and Personal Tax Scenarios in the UK (2025 Insights)
Building on the essentials we covered earlier, let’s now explore more advanced examples of annual accounts in the UK for 2025. This section focuses on slightly bigger businesses, self-employed individuals with mixed incomes, and charities — real situations faced by thousands of UK taxpayers this year.
We’ll stay laser-focused on giving you actionable insights based on verified 2025 data, directly tied to Companies House, HMRC rules, and taxpayer experiences.
How Medium Companies Must Prepare Annual Accounts in 2025
Medium-sized companies — those who meet at least two of the following:
Turnover ≤ £36 million
Balance sheet total ≤ £18 million
≤250 employees
— must prepare full statutory accounts (no short-cuts like micro-entities). That means profit and loss, balance sheet, directors’ report, and full notes, plus audits in most cases.
Example 4: Medium Limited Company Annual Accounts (Full Statutory)
Case Study: Pamela Wainwright, Managing Director of Wainwright Property Services Ltd.
Turnover: £6.2 million (2024/25)
Employees: 65 full-time
Assets: £3.1 million (offices, rental properties, vehicles)
Financial Year-End: 30 September 2025
Annual Accounts Prepared:
Full profit and loss account showed:
Revenue: £6.2 million
Expenses: £4.3 million
Net Profit: £1.9 million
Balance sheet detailed all fixed and current assets.
Notes explained loan terms, depreciation schedules, and director remuneration.
Audit completed by a registered auditor (mandatory under Companies Act rules for medium companies).
Tax Impact:
Corporation Tax on £1.9 million profit.
Blended Corporation Tax Rate (based on new HMRC marginal relief rates 2025):
25% main rate on profits over £250,000.
Tax bill = £475,000.
Pamela’s Tip:
"We moved to cloud-based accounting early in 2025 — it saved us from messy paperwork and late penalties!"
Income Tax Changes in 2025 That Affect Self-Employed Annual Accounts
If you’re self-employed with additional income (like rent), your Self Assessment returns must reflect all sources clearly to avoid HMRC red flags.
Common 2025 scenarios include:
PAYE job + freelance side hustle
Freelance + rental property income
Dividend income from shares
Since 2025/26 maintains:
£1,000 trading allowance
£1,000 property allowance
You can still earn up to £1,000 tax-free from side gigs or property before needing full reporting.
But if you cross that line — proper annual accounts (income-expense ledgers) are critical.
Example 5: Self-Employed Person with Rental Income (Mixed Accounts)
Case Study: Thomas Cattermole, IT consultant and part-time landlord
Freelance income: £38,000 (post-expenses)
Rental income: £14,400 (from a two-bedroom London flat)
Mortgage interest: £2,000 deductible under current buy-to-let tax reliefs.
Annual Accounts Prepared:
Two income streams reported separately in Self Assessment:
Freelance: £38,000
Rental: £14,400 – £2,000 = £12,400 taxable rental profit.
Total taxable income: £50,400.
Tax Impact:
£50,400 total income minus £12,570 Personal Allowance = £37,830 taxable.
Tax calculation:
£37,699 taxed at 20% = £7,539.80
£131 taxed at 40% = £52.40
Total Income Tax Due = £7,592.20
NI Contributions:
Class 2: £3.45 per week = £179.40 annually
Class 4: 9% on profits between £12,570 and £50,270 (freelance profit triggers this).
Thomas’s Tip: "I separated my freelance and rental records — it made filing easy. Plus, my accountant caught an extra £600 claimable in home office expenses!"
What Happens If You Get Your Accounts Wrong? (2025 Rules)
Mistakes in your accounts — especially under-declaring income — are treated seriously by HMRC.
Here’s what happens:
Minor mistake? You might get a correction letter and pay owed tax plus interest (~7.75% rate in 2025).
Deliberate under-reporting? Expect penalties between 15%-100% of unpaid tax.
Repeated offences? Trigger full audits.
Fix it early: Use the HMRC Digital Disclosure Service if you realise errors before HMRC contacts you.
How Charity Annual Accounts Must Look in 2025
UK charities have specific rules:
Income < £25,000? Just submit basic receipts/payments accounts.
Income £25,001 – £1 million? Prepare full accrual accounts + trustees' report.
Must follow the Charities SORP (Statement of Recommended Practice).
And, if registered as a charitable company (under Companies House), you file both with the Charity Commission and Companies House.
Example 6: Charity Annual Accounts
Case Study: Nicola Forsyth, Treasurer of Hale Community Garden Project
Annual donations/grants: £42,000
Expenses: £37,000 (tools, salaries, community events)
Financial Year-End: 31 March 2025
Annual Accounts Prepared:
Full income and expenditure statement (accrual basis).
Trustees' annual report covering:
Mission and objectives
Activities undertaken in 2024/25
Plans for future funding
Filed accounts both at:
Charity Commission (within 10 months of year-end)
Companies House (as Hale CGP is incorporated).
Nicola’s Tip: "Even small charities need proper bookkeeping now. We moved to free charity-specific accounting software in 2025, making reporting simple."
Common Refund Triggers from 2025 Annual Account Mistakes
Here’s when you might get money back:
Trigger | Refund Situation |
Over-reported income | PAYE employer misreported, tax code wrong |
Overpaid Corporation Tax | Incorrect CT600 filing |
Claimed wrong expenses | Self Assessment adjustments |
Duplicate NI contributions | HMRC refund after review |
Refund Process Tip: Claim refunds quickly online via your HMRC Personal Tax Account or submit a P800 if triggered.
Example of Full Annual Accounts (UK, 2025) of a Sample Sole Trader
(Unaudited Annual Accounts)
For the Year Ended 31 December 2025
Prepared by:Johnson & Co Accountants12 Willow Lane, Birmingham, B2 4XY, United Kingdom
Contents
Page | Description |
1 | Proprietor and Professional Advisers |
2 | Proprietor's Approval Statement |
3 | Accountant's Report |
4 | Profit and Loss Account |
5 | Balance Sheet |
6 | Cash Flow Statement |
7-15 | Notes to the Accounts |
Proprietor and Professional Advisers
Year Ended 31 December 2025
Principal Activity: Sample Soletrader is engaged in the provision of business consultancy services.
Proprietor: Name: Ms. Jane DoeBusiness Name: Sample SoletraderBusiness Address:15 Market RoadBirminghamB2 5YZUnited KingdomVAT Registration: No. 123 4567 89, Standard Rate Scheme
Accountant: Johnson & Co Accountants12 Willow LaneBirminghamB2 4XYUnited Kingdom
Bankers: High Street Bank Plc45 High StreetBirminghamB1 1AAUnited Kingdom
Proprietor's Approval Statement
Year Ended 31 December 2025
In accordance with the engagement letter dated 15 May 2024, I approve the accounts which comprise the profit and loss account, balance sheet, cash flow statement, and related notes. I acknowledge my responsibility for the accounts, including the appropriateness of the applicable financial reporting framework as set out in note 1, and for providing Johnson & Co Accountants with all the information and explanations necessary for their compilation.
Ms. Jane DoeDate: 10 June 2026
Accountant's Report
Report to the Proprietor on the Preparation of the Unaudited Accounts of Sample SoletraderYear Ended 31 December 2025
In accordance with your instructions, we have compiled the accounts on the following pages from the accounting records and from information and explanations supplied to us.
We have not carried out an audit or any other review, and consequently, we do not express any opinion on the accounts.
Johnson & Co Accountants12 Willow LaneBirminghamB2 4XYUnited KingdomDate: 10 June 2026
Profit and Loss Account
Year Ended 31 December 2025
Description | Note | 2025 (£) | 2024 (£) |
Operating Income | |||
Turnover | 2 | 450,000 | 420,000 |
Cost of Sales | 2 | (135,000) | (125,000) |
Gross Profit | 315,000 | 295,000 | |
Other Operating Income | 2 | 12,500 | 10,000 |
Administrative Expenses | 2 | (185,000) | (175,000) |
Operating Profit | 142,500 | 130,000 | |
Non-Operating Income/(Expenses) | |||
Finance Income | 2 | 150 | 120 |
Finance Charges | 2 | (1,200) | (1,000) |
Profit Before Taxation | 141,450 | 129,120 | |
Taxation | 9 | (28,290) | (25,824) |
Profit for the Year | 113,160 | 103,296 |
Balance Sheet
As at 31 December 2025
Description | Note | 2025 (£) | 2024 (£) |
Fixed Assets | |||
Tangible Assets | 3 | 141,250 | 170,000 |
Current Assets | |||
Stocks | 4 | 15,000 | 12,000 |
Debtors | 5 | 90,000 | 85,000 |
Cash at Bank and in Hand | 50,000 | 45,000 | |
Total Current Assets | 155,000 | 142,000 | |
Current Liabilities | 6 | (160,000) | (150,000) |
Net Current Liabilities | (5,000) | (8,000) | |
Total Assets Less Current Liabilities | 136,250 | 162,000 | |
Long-term Liabilities | 7 | (15,000) | (20,000) |
Net Assets | 121,250 | 142,000 | |
Financed by: | |||
Capital Account | 8 | 121,250 | 142,000 |
Cash Flow Statement
Year Ended 31 December 2025
Description | Note | 2025 (£) | 2024 (£) |
Cash Flows from Operating Activities | |||
Profit Before Taxation | 141,450 | 129,120 | |
Adjustments for: | |||
Depreciation | 3 | 131,250 | 45,000 |
(Profit)/Loss on Disposal | 3 | 0 | 0 |
Finance Income | 2 | (150) | (120) |
Finance Charges | 2 | 1,200 | 1,000 |
(Increase)/Decrease in Stocks | 4 | (3,000) | (2,000) |
(Increase)/Decrease in Debtors | 5 | (5,000) | (10,000) |
Increase/(Decrease) in Creditors | 6,7 | 5,000 | 15,000 |
Net Cash from Operating Activities | 270,750 | 178,000 | |
Cash Flows from Investing Activities | |||
Purchase of Tangible Assets | 3 | (115,000) | (50,000) |
Proceeds from Disposal of Assets | 3 | 12,500 | 0 |
Net Cash Used in Investing Activities | (102,500) | (50,000) | |
Cash Flows from Financing Activities | |||
Capital Introduced | 8 | 20,000 | 15,000 |
Drawings | 8 | (75,160) | (90,000) |
Repayment of Bank Loans | 7 | (5,000) | (5,000) |
Finance Charges Paid | 2 | (1,200) | (1,000) |
Taxation Paid | 9 | (25,824) | (20,000) |
Net Cash Used in Financing Activities | (87,184) | (101,000) | |
Net Increase in Cash | 81,066 | 27,000 | |
Cash at Bank and in Hand at 1 January | 45,000 | 18,000 | |
Cash at Bank and in Hand at 31 December | 50,000 | 45,000 |
Notes to the Accounts
Year Ended 31 December 2025
1. Accounting Policies
Basis of Preparation: The accounts have been prepared under the historical cost convention and in accordance with FRS 105, The Financial Reporting Standard applicable to the Micro-entities Regime, as applicable to sole traders, and United Kingdom Generally Accepted Accounting Practice (UK GAAP). Comparative figures for 2024 have been prepared on the same basis, with no restatements required.
Turnover: Turnover represents amounts invoiced during the year for consultancy services, exclusive of Value Added Tax (VAT).
Tangible Assets: Tangible assets are measured at cost less accumulated depreciation. Depreciation is calculated to write off the cost of an asset, less its estimated residual value (assumed to be nil unless otherwise stated), over its useful economic life as follows:
Plant and Machinery: 25% straight line
Fixtures and Fittings: 25% straight line
Office Equipment: 25% straight line
Motor Vehicles: 25% straight line
Depreciation methods and residual values are reviewed annually.
Stocks: Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items.
Taxation: Taxation represents the proprietor’s personal tax liability, including income tax and Class 2/4 National Insurance contributions, based on the profits for the year.
2. Profit and Loss Account Analysis
Operating Income - Turnover
Description | 2025 (£) | 2024 (£) |
Sales | 445,000 | 415,000 |
Discounts Allowed | (500) | (600) |
Other Income | 5,500 | 5,600 |
Total Turnover | 450,000 | 420,000 |
Operating Expenses - Cost of Sales
Description | 2025 (£) | 2024 (£) |
Opening Stock | 12,000 | 10,000 |
Purchases | 80,000 | 75,000 |
Materials | 45,000 | 40,000 |
Subcontracted Staff | 8,000 | 7,000 |
Less: Closing Stock | (10,000) | (12,000) |
Total Cost of Sales | 135,000 | 125,000 |
Operating Income - Other Operating Income
Description | 2025 (£) | 2024 (£) |
Rent Receivable | 8,500 | 7,000 |
Commission Receivable | 2,000 | 1,500 |
Other Income | 2,000 | 1,500 |
Total | 12,500 | 10,000 |
Non-Operating Income - Finance Income
Description | 2025 (£) | 2024 (£) |
Bank Interest | 150 | 120 |
Total | 150 | 120 |
Operating Expenses - Administrative Expenses
Description | 2025 (£) | 2024 (£) |
Premises Costs: | ||
- Rent | 6,000 | 5,500 |
- Rates | 4,000 | 3,500 |
- Light, Heat, Power | 2,000 | 2,000 |
Staff Costs: | ||
- Wages and Salaries | 65,000 | 60,000 |
- Employer’s NI | 10,000 | 9,000 |
- Pensions | 8,000 | 8,000 |
- Other Staff Costs | 2,000 | 3,000 |
Office Costs: | ||
- Printing, Stationery | 2,000 | 1,800 |
- Telephone | 2,000 | 1,700 |
- Computer Costs | 1,000 | 1,000 |
Marketing: | ||
- Advertising | 5,000 | 4,500 |
- Promotions | 3,000 | 2,500 |
Legal & Professional: | ||
- Legal Fees | 5,000 | 4,500 |
- Accountancy Fees | 5,000 | 4,500 |
Repairs & Maintenance | 5,000 | 4,500 |
Depreciation | 50,000 | 45,000 |
Bad Debts | 5,000 | 4,000 |
General Expenses: | ||
- Insurance | 2,000 | 1,800 |
- Subscriptions | 1,000 | 1,000 |
- Sundry Expenses | 2,000 | 1,700 |
Total | 185,000 | 175,000 |
Non-Operating Expenses - Finance Charges
Description | 2025 (£) | 2024 (£) |
Bank Interest Payable | 800 | 700 |
Bank Charges | 400 | 300 |
Total | 1,200 | 1,000 |
3. Tangible Assets
Description | Plant & Machinery (£) | Fixtures & Fittings (£) | Office Equipment (£) | Motor Vehicles (£) | Total (£) |
Cost | |||||
At 1 January 2025 | 450,000 | 180,000 | 10,000 | 20,000 | 660,000 |
Additions | 100,000 | 10,000 | 5,000 | - | 115,000 |
Disposals | (50,000) | - | - | - | (50,000) |
At 31 December 2025 | 500,000 | 190,000 | 15,000 | 20,000 | 725,000 |
Depreciation | |||||
At 1 January 2025 | 337,500 | 135,000 | 7,500 | 10,000 | 490,000 |
Charge | 75,000 | 47,500 | 3,750 | 5,000 | 131,250 |
Disposals | (37,500) | - | - | - | (37,500) |
At 31 December 2025 | 375,000 | 182,500 | 11,250 | 15,000 | 583,750 |
Net Book Value | |||||
At 31 December 2025 | 125,000 | 7,500 | 3,750 | 5,000 | 141,250 |
At 31 December 2024 | 112,500 | 45,000 | 2,500 | 10,000 | 170,000 |
4. Stocks
Description | 2025 (£) | 2024 (£) |
Raw Materials | 15,000 | 12,000 |
5. Debtors
Description | 2025 (£) | 2024 (£) |
Trade Debtors | 75,000 | 70,000 |
Other Debtors | 5,000 | 4,000 |
Prepayments | 10,000 | 11,000 |
Total | 90,000 | 85,000 |
6. Current Liabilities
Description | 2025 (£) | 2024 (£) |
Trade Creditors | 100,000 | 95,000 |
VAT Liability | 35,000 | 30,000 |
PAYE and Social Security | 15,000 | 14,000 |
Accruals | 10,000 | 11,000 |
Total | 160,000 | 150,000 |
7. Long-term Liabilities
Description | 2025 (£) | 2024 (£) |
Bank Loans | 15,000 | 20,000 |
Total | 15,000 | 20,000 |
8. Capital Account
Description | 2025 (£) | 2024 (£) |
At 1 January 2025 | 142,000 | 143,704 |
Net Profit for the Year | 113,160 | 103,296 |
Capital Introduced | 20,000 | 15,000 |
Drawings | (75,160) | (90,000) |
Taxation | (28,290) | (25,824) |
At 31 December 2025 | 121,250 | 142,000 |
9. Taxation
The taxation charge represents the proprietor’s personal tax liability, comprising income tax and Class 2/4 National Insurance contributions, based on the profits for the year.
Description | 2025 (£) | 2024 (£) |
Profit Before Taxation | 141,450 | 129,120 |
Non-Deductible Expenses | 2,000 | 1,500 |
Taxable Profit | 143,450 | 130,620 |
Income Tax at 20% | 26,690 | 24,224 |
Class 4 National Insurance | 1,600 | 1,600 |
Class 2 National Insurance | 0 | 0 |
Total Taxation Charge | 28,290 | 25,824 |
Note: Class 2 National Insurance is assumed to be nil due to the Small Profits Threshold, and personal allowances are assumed to be fully utilized elsewhere for simplicity.
10. Employees
Description | 2025 | 2024 |
Average Number of Employees | 5 | 4 |
Staff costs are included in administrative expenses (see Note 2) and comprise wages and salaries, employer’s National Insurance, pension contributions, and other staff costs.
11. Related Party Transactions
No related party transactions occurred during the year that require disclosure.
12. Post Balance Sheet Events
There are no significant events after the balance sheet date that require adjustment or disclosure.
13. Contingent Liabilities
There are no known contingent liabilities as at 31 December 2025.
14. Going Concern
The proprietor has assessed the business as a going concern, with no intention to cease trading in the foreseeable future.
A 2nd Example Annual Accounts in PDF, Which You Can Download
FAQs
Q1. What types of businesses are legally required to file annual accounts in the UK in 2025?
A1. All limited companies, limited liability partnerships (LLPs), and certain registered charities in the UK must file annual accounts with Companies House in 2025, even if they are dormant.
Q2. Can you submit paper annual accounts to Companies House in 2025?
A2. No, from April 2025, Companies House now requires most companies to file annual accounts digitally, unless specifically exempted due to exceptional circumstances.
Q3. How long do you have to file your annual accounts after your company’s year-end in 2025?
A3. You have nine months after your company’s financial year-end to file your annual accounts with Companies House in 2025.
Q4. Are there any changes to audit exemptions for small companies in 2025?
A4. No major changes were made to audit exemption thresholds in 2025; a small company still qualifies if it meets two out of three criteria on turnover, balance sheet total, and number of employees.
Q5. What penalties apply if your LLP files accounts late in 2025?
A5. LLPs face the same late filing penalties as limited companies: starting at £150 for up to one month late and escalating up to £1,500 if more than six months late.
Q6. Can you prepare your company’s annual accounts yourself without hiring an accountant in 2025?
A6. Yes, you can prepare and file your annual accounts yourself if you understand accounting standards and Companies House requirements, although many businesses prefer professional help to avoid errors.
Q7. What software is recommended for filing annual accounts digitally in 2025?
A7. Approved software such as Xero, QuickBooks, Sage, and FreeAgent is widely used for preparing and filing annual accounts directly to Companies House and HMRC.
Q8. Can you use cash accounting for company annual accounts in 2025?
A8. No, companies must use accrual accounting for their statutory annual accounts; cash accounting is only permitted for certain self-employed individuals under Self Assessment rules.
Q9. Do you need to attach corporation tax computations with annual accounts submitted to Companies House?
A9. No, corporation tax computations are submitted separately to HMRC; Companies House requires only the statutory accounts, not the tax calculation.
Q10. What happens if you accidentally overpay Corporation Tax based on incorrect annual accounts in 2025?
A10. HMRC will issue a Corporation Tax refund automatically once amended accounts and a revised CT600 return are submitted and processed.
Q11. Can you amend annual accounts after filing with Companies House in 2025?
A11. Yes, if you discover errors after filing, you can submit amended accounts clearly marked as "amended" to Companies House along with a covering letter explaining the changes.
Q12. Are dividends required to be shown in a company’s statutory annual accounts?
A12. Yes, dividends paid to shareholders must be disclosed in the notes to the annual accounts under "appropriation of profits".
Q13. Do dormant companies need to prepare a profit and loss account in 2025?
A13. No, dormant companies do not need to prepare a profit and loss account; they submit a simplified dormant company account form instead.
Q14. What is the difference between annual accounts and a Confirmation Statement in the UK in 2025?
A14. Annual accounts show a company's financial status, while a Confirmation Statement confirms company information like directors, shareholders, and registered office, and must be filed separately once a year.
Q15. Can you delay filing annual accounts due to unforeseen circumstances in 2025?
A15. You can apply for a filing extension at Companies House, but only under exceptional circumstances such as illness or disaster, and the application must be made before the filing deadline.
Q16. Are annual accounts publicly available once filed with Companies House?
A16. Yes, once filed, annual accounts become part of the public record and can be viewed online through the Companies House service.
Q17. What financial year do the 2025 filing rules for annual accounts apply to?
A17. The 2025 rules apply to financial years ending on or after 6 April 2025 unless otherwise stated by specific HMRC or Companies House announcements.
Q18. How can you check if your company’s annual accounts have been successfully filed in 2025?
A18. You can log into the Companies House WebFiling service or use the Companies House public register to verify if your filing has been accepted.
Q19. Is there a grace period after missing an annual accounts filing deadline in 2025?
A19. No, there is no grace period; Companies House imposes automatic penalties the moment the deadline passes.
Q20. Do sole traders need to file annual accounts with Companies House in 2025?
A20. No, sole traders are not required to file accounts with Companies House, but they must keep accurate business records for HMRC and complete a Self Assessment tax return.
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