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<h3>Gifting Through Your Limited Company: What’s Tax Deductible?</h3><p>Business gifts and staff treats are a great way to build relationships and show appreciation, but when it comes to HMRC rules, the tax treatment can be tricky. Here’s what you need to know about what’s tax deductible, when you can claim VAT and how the annual staff party fits in.</p><h3>Business Gifts to Clients and Suppliers</h3><p>Most gifts to clients or suppliers are treated by HMRC as business entertaining, meaning you cannot claim corporation tax relief or reclaim VAT on them.</p><p>There are two main exceptions where the cost of a gift can be tax deductible:</p><p>Free samples of your products, provided as part of your usual business.<br>Branded gifts featuring a clear advertisement for your business, costing less than £50, which are not food, drink, tobacco, or exchangeable vouchers.<br>Outside of these exceptions, you can still give gifts, but they won’t reduce your tax bill or VAT liability. Keep clear records of who received the gift to show HMRC that it wasn’t for personal use.</p><figure id="figure-8a1i2khtymdosb2vv"><img id="8a1i2khtymdosb2vv" src="https://media.gettyimages.com/id/1892128639/photo/open-gifts-box-present-with-balloons-and-confetti-3d-render.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Rk_vLfvO0jjpzfoNhcYb1O_Z6cBFFylAifW--6EGQ3g=" alt="Open gifts box present with balloons and confetti. 3d render" title="Open gifts box present with balloons and confetti. 3d render" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1892128639/photo/open-gifts-box-present-with-balloons-and-confetti-3d-render.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Rk_vLfvO0jjpzfoNhcYb1O_Z6cBFFylAifW--6EGQ3g=" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure><h3>Employee Gifts – Trivial Benefit Rules</h3><p>HMRC allows small gifts to employees (including directors) to be tax and NIC free under the Trivial Benefit rules, but only if all the conditions are met:</p><ul><li>The gift costs £50 or less (including VAT) – if it’s £51, the whole amount is taxable.</li><li>It’s not cash or a cash voucher.</li><li>It’s not provided as a reward for work or part of a contract.</li><li>It’s not given regularly (e.g., every week).</li><li>The company pays for the gift directly (no reimbursements).</li><li>Directors of “close companies” (five or fewer shareholders) are also limited to £300 worth of trivial benefits per payroll tax year.</li></ul><p>Important VAT Note: Although trivial benefits are allowable for corporation tax purposes, VAT on these gifts is not recoverable because HMRC classifies them as personal consumption, not costs incurred wholly and exclusively for business purposes.</p><p><br></p><figure id="figure-55cwftscxmdouj4a3"><img id="55cwftscxmdouj4a3" src="https://media.gettyimages.com/id/502284560/photo/businessman-at-party.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=F-SJwuapwxkevdVt1A2KciPNYDo-mQ10x7-nv0uiC_A=" alt="Businessman at party" title="Businessman at party" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/502284560/photo/businessman-at-party.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=F-SJwuapwxkevdVt1A2KciPNYDo-mQ10x7-nv0uiC_A=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Annual Staff Party &amp; Events</h3><p>HMRC offers a £150 per head exemption for annual staff events like Christmas parties or summer outings, as long as the event is open to all employees and the total cost per attendee (including VAT) stays under £150.</p><p>If you host multiple annual events in the same tax year, the combined cost per person must not exceed £150. Exceeding the limit even by £1 invalidates the exemption, meaning the entire cost per person becomes a taxable benefit in kind.</p><p>VAT can be reclaimed on the employee portion of these costs, but not on amounts relating to guests or partners so you may need to apportion the VAT.</p><figure id="figure-f78qlijt4mmdbuavxm"><img id="f78qlijt4mmdbuavxm" src="https://media.gettyimages.com/id/2157446838/photo/colorful-celebration-birthday-cake-with-colorful-birthday-candles-and-sugar-sprinkles.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=J7TStACBgv__iG-Rk2qk2YST-DmKglBRYzhzaw-eYUo=" alt="Colorful celebration birthday cake with colorful birthday candles and sugar sprinkles" title="Colorful celebration birthday cake with colorful birthday candles and sugar sprinkles" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2157446838/photo/colorful-celebration-birthday-cake-with-colorful-birthday-candles-and-sugar-sprinkles.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=J7TStACBgv__iG-Rk2qk2YST-DmKglBRYzhzaw-eYUo=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Birthday Lunches and Similar Treats</h3><p>Birthday lunches or small staff meals usually fall under the trivial benefits exemption, provided the cost per employee is £50 or less (including VAT) and the other criteria is met:</p><ul><li>Non-cash or non-cash voucher.</li><li>Not performance-linked or contractual.</li><li>Not part of a regular series.</li><li>Paid directly by the company.<br><br>These are not counted toward the £150 annual party limit and are exempt from tax and National Insurance.</li></ul><p>Trivial benefits like birthday lunches are private in nature, even though they’re tax exempt so VAT cannot be reclaimed on them.</p><h3>Final Thoughts</h3><p>These HMRC rules are designed to help businesses give gifts and organise events without unexpected tax bills, as long as you stay within the limits. You can, of course, spend more than these allowances, but you’ll likely face extra tax or National Insurance. Keeping good records (invoices, attendee lists and reasons for gifts) will help you stay compliant.</p><p><img id="fme5sig0lhmdowc411" src="https://media.gettyimages.com/id/2030011356/photo/exploding-light-bulb-with-colorful-fragment-splash.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=2Sk_r0lRnoRj3-Sl61xuLQDi25iFI7iohnesqR4Yvt0=" alt="Exploding light bulb with colorful fragment splash" title="Exploding light bulb with colorful fragment splash" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2030011356/photo/exploding-light-bulb-with-colorful-fragment-splash.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=2Sk_r0lRnoRj3-Sl61xuLQDi25iFI7iohnesqR4Yvt0=" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></p><p>This blog is here to give you an overview, but it’s not personalised financial advice. If you’re unsure about your own accounts or deadlines, we’d love to chat and help you figure out the best approach for your business.</p>

The Ultimate Guide to Tax Deductible Business Gifts, Parties & Employee Perks

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<h3>FRS 102 Section 1A and the Small Company Accounts</h3><p>If your company has outgrown the micro-entity thresholds, you’ll prepare small company accounts instead. These are produced under FRS 102 Section 1A, a standard that offers more flexibility and detail than FRS 105, while still being simpler than the full requirements for medium and large companies.</p><p>FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland) is part of the UK GAAP framework for producing statutory accounts under the Companies Act 2006.</p><p>Section 1A of FRS 102 is specifically designed for small companies. While the recognition and measurement rules (how you account for assets, liabilities, income, and expenses) are the same as full FRS 102, Section 1A offers simplified presentation and fewer disclosure requirements.</p><p>This means small companies can prepare a shorter, more streamlined set of accounts while still following the same fundamental accounting principles as larger businesses.</p><figure id="figure-8a1i2khtymdosb2vv" class=""><img id="8a1i2khtymdosb2vv" src="https://media.gettyimages.com/id/1924464527/photo/small-flower-business-front-view-of-caucasian-man-and-african-american-woman-in-aprons.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Icxfb3WU8a3Bdg9aPs06TUtL_OseXArzGByxwnLLSlg=" alt="Small flower business. Front view of caucasian man and african american woman in aprons smiling at camera white standing at own shop." title="Small flower business. Front view of caucasian man and african american woman in aprons smiling at camera white standing at own shop." class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1924464527/photo/small-flower-business-front-view-of-caucasian-man-and-african-american-woman-in-aprons.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Icxfb3WU8a3Bdg9aPs06TUtL_OseXArzGByxwnLLSlg=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Who Can Use FRS 102 Section 1A?</h3><p>Your company can use FRS 102 Section 1A if it qualifies as a small company by meeting at least two of these conditions:</p><ul><li>Turnover: £10.2 million or less</li><li>Balance sheet total: £5.1 million or less.</li><li>Employees: 50 or fewer (average number during the financial year).<br><br>Some companies are excluded, even if they meet the size criteria – for example, public companies, investment undertakings, and financial institutions.<br></li></ul><h3>The Two-Year Rule</h3><p>In your first financial year, you only need to meet these size criteria once to qualify as a small company and use FRS 102 Section 1A. After that, your company must meet at least two of these conditions for two consecutive years to remain under the small company regime.</p><p>This rule is in place to keep reporting consistent and to prevent frequent switching between standards. If your company grows and exceeds the thresholds for two years in a row, you’ll need to move up to full FRS 102 (or IFRS, if required).</p><figure id="figure-m0av8t7bhfmdotanmr"><img id="m0av8t7bhfmdotanmr" src="https://media.gettyimages.com/id/1493150114/photo/glowing-number-2-before-dark-background.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Kysl9Ua9rrUFosjQh2ALOFOdT15VlqQ0G3oO_JghEaA=" alt="Glowing Number 2 Before Dark Background" title="Glowing Number 2 Before Dark Background" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1493150114/photo/glowing-number-2-before-dark-background.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Kysl9Ua9rrUFosjQh2ALOFOdT15VlqQ0G3oO_JghEaA=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>What Do Small Company Accounts Include?</h3><p>Small company accounts under FRS 102 Section 1A are more detailed than micro-entity accounts but still simpler than those required for medium or large companies. They include a balance sheet, a profit and loss account (prepared for HMRC but does not need to be filed publicly at Companies House) and notes to the accounts covering key information such as accounting policies, director loans and related party transactions. A cash flow statement is optional for small companies under Section 1A.</p><p>When filing at Companies House, you can submit a filleted set of accounts, which leaves out the profit and loss account and certain notes to keep sensitive information private.</p><p>FRS 102 Section 1A also has some important features:</p><ul><li>Reduced disclosures compared to full FRS 102, but still more detail than FRS 105.</li><li>No simplification for recognition and measurement – you must apply all the accounting rules in FRS 102 (e.g., fair value for certain financial instruments, accrual accounting).</li><li>Flexibility with accounting policies, such as capitalising development costs or borrowing expenses.</li><li>Revaluations allowed, which can strengthen the balance sheet.</li><li>Consistent principles with larger companies, which is useful if your company grows.<figure id="figure-t3uhmqzeamdoxhv3o"><img id="t3uhmqzeamdoxhv3o" src="https://media.gettyimages.com/id/1365567295/photo/business-colleagues-having-a-meeting-in-a-boardroom.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=LMndbfYtw_q6WqpaA05vBg-4QK21J9zEUVChwf1BkA0=" alt="Business colleagues having a meeting in a boardroom" title="Business colleagues having a meeting in a boardroom" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1365567295/photo/business-colleagues-having-a-meeting-in-a-boardroom.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=LMndbfYtw_q6WqpaA05vBg-4QK21J9zEUVChwf1BkA0=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure></li></ul><h3>Is FRS 102 Section 1A Right for You?</h3><p>If your company has outgrown the micro-entity regime, Section 1A is often the natural next step. It provides a good balance between simplicity and the level of information needed by lenders, investors, or other stakeholders.</p><p>However, because recognition and measurement rules are the same as full FRS 102, small company accounts can still be a bit technical. This is where having an accountant on hand to interpret and prepare the accounts is really valuable.</p><h3>Final Thoughts</h3><p>FRS 102 Section 1A is a sensible, flexible standard for small businesses. It’s designed to lighten the administrative load without compromising the quality of financial information. If your company is growing, it’s worth understanding how Section 1A works and what it includes, so you know what’s required and how your accounts might look different from micro-entity accounts.</p><figure id="figure-z4ngbn2ggmdoxiva2"><img id="z4ngbn2ggmdoxiva2" src="https://media.gettyimages.com/id/1950355912/photo/phrase-final-thoughts-written-on-blank-page.jpg?b=1&s=2048x2048&w=0&k=20&c=v-8X6KPIRZCaaL-8x-KrYvHBr2J1yh0r1VM38mTrBd8=" alt="Phrase Final Thoughts Written On Blank Page" title="Phrase Final Thoughts Written On Blank Page" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure><p>This blog is here to give you an overview, but it’s not personalised financial advice. If you’re unsure about your own accounts or deadlines, we’d love to chat and help you figure out the best approach for your business.</p>

Small Company Accounts: Your Simple Guide

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<h3>FRS 105 and the Micro‑Entity Accounts</h3><p>When you’re running a small limited company, keeping your accounts simple can save you time, money, and stress. That’s where FRS 105, the Financial Reporting Standard for micro-entities comes in. It’s designed to strip back reporting requirements for the smallest companies while still ticking all the legal boxes with HMRC and Companies House.</p><p>FRS 105 is part of the UK GAAP framework and sets the rules for preparing accounts if your company qualifies as a micro-entity. It’s specifically aimed at very small businesses, making it easier to prepare accounts without unnecessary complexity.</p><p>Unlike FRS 102 (used by small and larger companies), FRS 105 is simplified in almost every way – from the layout of your accounts to the accounting treatments you’re allowed to use. It’s all about keeping things straightforward for smaller businesses that don’t need full disclosure.</p><figure id="figure-8a1i2khtymdosb2vv" class=""><img id="8a1i2khtymdosb2vv" src="https://media.gettyimages.com/id/1924464527/photo/small-flower-business-front-view-of-caucasian-man-and-african-american-woman-in-aprons.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Icxfb3WU8a3Bdg9aPs06TUtL_OseXArzGByxwnLLSlg=" alt="Small flower business. Front view of caucasian man and african american woman in aprons smiling at camera white standing at own shop." title="Small flower business. Front view of caucasian man and african american woman in aprons smiling at camera white standing at own shop." class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1924464527/photo/small-flower-business-front-view-of-caucasian-man-and-african-american-woman-in-aprons.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Icxfb3WU8a3Bdg9aPs06TUtL_OseXArzGByxwnLLSlg=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Who Can Use FRS 105?</h3><p>To qualify for the micro-entity regime, your company must meet at least two of these criteria:</p><ul><li>A turnover of £632,000 or less (increasing to £1,000,000 for accounting periods starting on or after 6 April 2025)</li><li>A balance sheet total of £316,000 or less (increasing to £500,000 for accounting periods starting on or after 6 April 2025)</li><li>An average of 10 employees or fewer during the financial year<br><br>This regime is mainly used by small owner-managed companies, contractors and startups. However, some businesses are excluded, for example, charitable companies (incorporated charities), investment undertakings and financial institutions cannot use FRS 105.</li></ul><h3>The Two-Year Rule</h3><p>In your first financial year, you only need to meet these size criteria once to qualify for FRS 105. After that, you must meet at least two of these conditions for two consecutive years to continue using the micro-entity regime.</p><p>This rule prevents companies from switching between standards too often. If your business grows and exceeds the thresholds for two years in a row, you’ll need to move up to small company accounts (FRS 102 Section 1A).</p><figure id="figure-3bwq21s8wnmdovha4n"><img id="3bwq21s8wnmdovha4n" src="https://media.gettyimages.com/id/1493150114/photo/glowing-number-2-before-dark-background.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Kysl9Ua9rrUFosjQh2ALOFOdT15VlqQ0G3oO_JghEaA=" alt="Glowing Number 2 Before Dark Background" title="Glowing Number 2 Before Dark Background" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1493150114/photo/glowing-number-2-before-dark-background.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Kysl9Ua9rrUFosjQh2ALOFOdT15VlqQ0G3oO_JghEaA=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Key Features of FRS 105</h3><p>FRS 105 is designed for simplicity. Here’s what sets it apart:</p><ul><li>Minimal accounts: You only prepare a balance sheet and a basic profit and loss account. Only the balance sheet (and minimal notes) is filed and made public on Companies House..</li><li>Less disclosure: Notes are kept to the legal minimum.<br></li><li>No complex treatments:&nbsp;</li></ul><h3>Is FRS 105 Always the Best Choice?<br></h3><p>FRS 105 is perfect for very small companies that want quick, low cost compliance. However, its simplicity can be a disadvantage. The accounts may not show enough detail for banks, lenders, or investors, which can make borrowing harder.</p><p>It’s also not a “fair presentation” framework under UK auditing standards, so if your company needs an audit or plans to grow, FRS 102 (small company) might be the better route.</p><h3>Final Thoughts</h3><p>FRS 105 is a great option if your company qualifies and you want to keep things as simple as possible. It cuts out the unnecessary complexity of larger company accounts while still ensuring you stay compliant. But as your business grows, it’s worth reviewing whether a move to FRS 102 Section 1A would give you a better balance of simplicity and useful information.</p><figure id="figure-y609mhbwpemdoxm63g"><img id="y609mhbwpemdoxm63g" src="https://media.gettyimages.com/id/1310865328/photo/new-idea-on-the-blue-jigsaw-puzzle-piece.jpg?b=1&s=2048x2048&w=0&k=20&c=T1EGR81VY1b4j2h6ylU-vFwV1A-e5rfTmUcFO5qxxsQ=" alt="New idea on the blue jigsaw puzzle piece," title="New idea on the blue jigsaw puzzle piece," class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="null" data-positionY="null" data-fullWidth="false"/></figure><p>This blog is here to give you an overview, but it’s not personalised financial advice. If you’re unsure about your own accounts or deadlines, we’d love to chat and help you figure out the best approach for your business.</p>

Micro‑Entity Accounts: Your Simple Guide

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<h3>Limited Company Accouts Filing</h3><p>When it comes to limited company accounts, a little organisation goes a long way. Keeping track of your numbers and reviewing them often helps you stay in control of your business and plan ahead with confidence. It’s also important to know which documents need to be filed and when, so everything on the compliance side runs smoothly. Here’s a quick roundup of the annual filing requirements and what to expect if deadlines are missed.</p><figure id="figure-qqjcahgbcmdbudcuo"><img id="qqjcahgbcmdbudcuo" src="https://media.gettyimages.com/id/1433055146/photo/bright-modern-office-interior-with-laptop-computer-houseplants-books-and-various-office.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=FoMiwmwNHbaN74M6t8gjEvyt7vHMOaNXYP8MhqAWIQA=" alt="Bright modern office interior with laptop computer, houseplants, books and various office supplies on white table." title="Bright modern office interior with laptop computer, houseplants, books and various office supplies on white table." class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1433055146/photo/bright-modern-office-interior-with-laptop-computer-houseplants-books-and-various-office.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=FoMiwmwNHbaN74M6t8gjEvyt7vHMOaNXYP8MhqAWIQA=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Annual Accounts</h3><p>Your company’s annual accounts are like the story of how your business has performed over the year. They show the financial position of the company and help work out how much Corporation Tax you’ll need to pay. These accounts have to follow strict accounting rules and once they’re finalised, they’re attached to your company’s tax return and sent to HMRC.</p><p>There’s a common pitfall for directors when it comes to deadlines. Your annual accounts must be filed with Companies House within 9 months of your company’s year end. In the first year, this deadline is a bit different, you get 21 months from the date your company was incorporated, which often feels shorter than expected. To make things easier, you can check your company’s filing deadlines anytime on the Companies House website.</p><p>There isn’t much free software out there that can handle the technical side of preparing company accounts. They need to be produced to exact standards and sent to HMRC in a special electronic format. This is where accountants step in, we have the software, knowledge and expertise to prepare and file them properly, saving you the headache of figuring it all out.</p><h3>Filleted and Micro-Entity Accounts</h3><p>The accounts you file at Companies House are visible to the public, but you don’t have to share all your numbers. Most businesses file a ‘filleted’ set of accounts (previously called abbreviated accounts) which leaves out details like turnover and profit, showing only the overall financial position.</p><figure id="figure-ojedderabnmdbudln0"><img id="ojedderabnmdbudln0" src="https://media.gettyimages.com/id/878863400/photo/businessman-analyzing-financial-report-data-company-operations-balance-sheet-fintech.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=3pvKQcmg0BwBuEbzV_jt0O31MJSI0wS13TIUHWclYSk=" alt="Businessman analyzing financial report data company operations, balance sheet, fintech" title="Businessman analyzing financial report data company operations, balance sheet, fintech" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/878863400/photo/businessman-analyzing-financial-report-data-company-operations-balance-sheet-fintech.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=3pvKQcmg0BwBuEbzV_jt0O31MJSI0wS13TIUHWclYSk=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><p>If your company is small, it might be classed as a micro-entity. This usually includes small owner managed businesses, contractors and startups with minimal trading history. Micro-entities can file a much simpler version of accounts with even less detail. To qualify, your company must meet at least two of these conditions:</p><ul><li>Turnover of £632,000 or less (or £1 million or less for accounting periods starting on or after 6 April 2025)</li><li>Balance sheet total of £316,000 or less (or £500,000 or less for accounting periods starting on or after 6 April 2025)</li><li>10 employees or fewer&nbsp; </li></ul><p>Companies House takes filing deadlines seriously. If your accounts are late, fines start at £100 and can go up to £1,500. If you miss deadlines more than once, the penalties double. In the worst-case scenario, failing to file accounts can lead to legal action and even court proceedings. The best approach is to stay on top of your deadlines so you never have to worry.</p><figure id="figure-z1m0p77xjbmdbuds57"><img id="z1m0p77xjbmdbuds57" src="https://media.gettyimages.com/id/471597236/photo/dont-miss-deadline.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=VC09psCXezpsyih82c5qhI3YhwWpirjolmKX3GZZocs=" alt="don’t miss deadline" title="don’t miss deadline" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/471597236/photo/dont-miss-deadline.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=VC09psCXezpsyih82c5qhI3YhwWpirjolmKX3GZZocs=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Corporation Tax Return (HMRC)</h3><p>Once your full accounts are ready, the next step is to prepare your Corporation Tax Return (also known as the CT600). This return tells both you and HMRC how much tax is due on your company’s profits for the year.</p><p>Your return is submitted together with the full accounts, but it has to be filed using special software that “tags” the information in the correct electronic format. This is another area where accountants step in to handle the technical side for you.</p><p>These deadlines can feel a little confusing:</p><p>Your Corporation Tax Return is due 12 months after your company’s year end.<br>However any Corporation Tax you owe must be paid 9 months and 1 day after the year end, which is before the return itself is due.<br>It’s worth being extra careful in the first year, as your first tax return often doesn’t line up neatly with your first set of accounts. In most cases, two separate returns may need to be filed for that period.</p><p>As with most filings, there are penalties for missing the deadline. These start at £100 but can quickly increase if your return remains overdue.</p><h3>Final Thoughts</h3><p>Staying on top of your company accounts and tax returns doesn’t have to be overwhelming. With a bit of organisation and by keeping an eye on both your numbers and deadlines, you can avoid penalties, keep your business compliant and have a clearer view of how your company is performing.</p><p>If you’re ever unsure about what needs to be filed or when, it’s always worth seeking advice early rather than risking fines or extra stress later on. Having an accountant by your side means you can focus on running your business while we take care of the compliance details in the background.</p><figure id="figure-vocleoptyvmdbue0e5"><img id="vocleoptyvmdbue0e5" src="https://media.gettyimages.com/id/1369495266/photo/cropped-shot-of-an-adorable-little-girl-wearing-a-labcoat-and-holding-out-a-lightbulb-toward.jpg?b=1&s=2048x2048&w=0&k=20&c=SHqBovQBaovutfDyUCF6bx08bYw6VbpYfbXFX6iTfqA=" alt="Cropped shot of an adorable little girl wearing a labcoat and holding out a lightbulb toward the camera" title="Cropped shot of an adorable little girl wearing a labcoat and holding out a lightbulb toward the camera" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="null" data-positionY="null" data-fullWidth="false"/></figure><p>This blog is here to give you an overview, but it’s not personalised financial advice. If you’re unsure about your own accounts or deadlines, we’d love to chat and help you figure out the best approach for your business.</p>

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