Prepare annual accounts for a private limited company

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Micro-entities, small and dormant companies

You might be able to send simpler (鈥榓bridged鈥�) accounts to Companies House and not need to be audited. This depends on whether your company is dormant or qualifies as a small company or 鈥榤icro-entity鈥�.

You must still send statutory accounts to your members and to HM Revenue and Customs (HMRC) as part of your Company Tax Return if you鈥檙e a small company or micro-entity.

Dormant companies

Your company is called 鈥榙ormant鈥� by Companies House if it鈥檚 had no 鈥榮ignificant鈥� transactions in the financial year that you鈥檇 normally report. Significant transactions do not include:

  • filing fees paid to Companies House
  • penalties for late filing of accounts
  • money paid for shares when the company was incorporated

Dormant companies that qualify as 鈥榮mall鈥� do not need to be audited.

Check if your company is also dormant for Corporation Tax.

Small companies

Your company will be 鈥榮mall鈥� if it has any 2 of the following:

  • a turnover of 拢10.2 million or less
  • 拢5.1 million or less on its balance sheet
  • 50 employees or less

If your company is small, you can:

  • use the exemption so your company鈥檚 accounts do not need to be audited
  • choose whether or not to send a copy of the director鈥檚 report and profit and loss account to Companies House
  • send abridged accounts to Companies House

Sending abridged accounts

You can only send abridged accounts if all your company members agree to it.

Abridged accounts must contain a simpler balance sheet, along with any notes. You can also choose to include a simpler profit and loss account and a copy of the director鈥檚 report.

The balance sheet must have the name of a director printed on it and must be signed by a director.

Sending abridged accounts means less information about your company will be publicly available from Companies House.

Micro-entities

Micro-entities are very small companies. Your company will be a micro-entity if it has any 2 of the following:

  • a turnover of 拢632,000 or less
  • 拢316,000 or less on its balance sheet
  • 10 employees or less

If your company is a micro-entity, you can:

  • prepare simpler accounts that meet statutory minimum requirements
  • send only your balance sheet with less information to Companies House
  • benefit from the same exemptions available to small companies

Find out exactly what to include in your accounts depending on your company type, for example micro-entity, small, medium or dormant.