How to File a Financial Report in the UK

Registering a company in the UK is quick and straightforward, often completed online within 24 hours. The UK’s stable economy, robust legal framework, and supportive environment for foreign investors make it an attractive jurisdiction for entrepreneurs. However, once your company is established, you are required to submit annual financial reports to HM Revenue and Customs (HMRC) and Companies House. Timely and accurate reporting is critical in the UK, where strict compliance is enforced. Failure to meet deadlines can result in fines or, in severe cases, criminal liability for company directors.

Foundry Accounting Limited provides expert assistance to ensure your financial reports are prepared and submitted correctly, helping you avoid penalties and maintain compliance.

What You Need to Know About Accounting and Auditing in the UK

At the end of each financial year (typically 12 months), all UK companies—private or public—must file financial reports with Companies House. Additionally, a Company Tax Return must be submitted to HMRC. Companies classified as “small” or “micro” are exempt from mandatory audits, but all companies must meet reporting obligations.

Small and Micro Company Criteria

A company qualifies as small if it meets at least two of the following:

• Annual turnover of £10.2 million or less;

• Total assets of £5.1 million or less (updated from £5.5 million to reflect 2025 thresholds);

• 50 or fewer employees.

  
  

A company qualifies as micro if it meets at least two of the following:

• Annual turnover of £632,000 or less;

• Total assets of £316,000 or less;

• 10 or fewer employees.

  
  

Types of Reports

UK companies must file the following annually:

1. Confirmation Statement: Submitted to Companies House, this outlines changes in the company over the past year, such as updates to shareholders, directors, business activities, or registered office. It must be filed within 28 days of the anniversary of incorporation or the last confirmation statement.

2. Annual Accounts: Filed with Companies House, these include a balance sheet reflecting the company’s financial position at the end of the reporting period. This information is publicly available but excludes profit and loss details for small companies.

3. Company Tax Return: Submitted to HMRC, this includes profit and loss details, a balance sheet, and explanatory notes. It forms the basis for calculating corporation tax.

4. Tax Computations: Accompany the tax return, detailing profits, losses, and taxable amounts.

   
   

Important: Engaging a qualified accountant, like those at Foundry Accounting Limited, ensures your reports are accurate, compliant, and unlikely to trigger HMRC scrutiny.

Consequences of Late Filing

Companies House and HMRC closely monitor compliance. Directors are responsible for the accuracy and timeliness of submissions. Deadlines vary based on your company’s reporting period, but late filings incur penalties:

• Up to 1 month late: £150 fine;

• 1–3 months late: £375 fine;

• 3–6 months late: £750 fine;

• Over 6 months late: £1,500 fine.

  
  

Persistent non-compliance may lead to criminal prosecution, including potential imprisonment for directors. Even if using nominee directors or shareholders, beneficial owners remain accountable. If reports are not filed, Companies House may replace nominee details with those of the beneficial owner, exposing them to liability. Foundry Accounting Limited helps you meet deadlines and avoid these risks.

How VAT Is Reported in the UK

If your company’s annual taxable turnover exceeds £90,000 (updated threshold for 2025), you must register for VAT. VAT-registered businesses charge VAT on goods and services and must submit VAT Returns to HMRC, typically quarterly, though monthly returns may be required in some cases. The return calculates the difference between VAT collected on sales and VAT reclaimable on purchases, determining the amount payable to HMRC.

Foundry Accounting Limited assists with VAT registration, compliance, and filing accurate VAT Returns to ensure you meet HMRC requirements.

Auditing Financial Statements for Large UK Companies

Large companies (those exceeding small company thresholds) must undergo an annual audit by a qualified auditor. The auditor’s role includes:

• Reviewing the company’s financial statements;

• Verifying the accuracy and reliability of the information;

• Ensuring compliance with the Companies Act 2006 and UK accounting standards;

• Assessing whether the financial statements accurately reflect the company’s performance.

  
  

The audit report includes:

1. General information about the audited financial statements;

2. Key audit principles applied;

3. A conclusion on compliance with reporting requirements;

4. The auditor’s opinion on the accuracy of the financial data;

5. Identification of any discrepancies or misstatements;

6. Comments on late submissions or incomplete information, if applicable.

Small and micro companies are exempt from audits unless required by shareholders or other regulations.

Financial Reporting for UK Limited Liability Partnerships (LLPs)

UK LLPs, governed by the Limited Liability Partnerships Act 2000, are not separate taxable entities, meaning they do not require a tax number. However, LLPs must file annual accounts with Companies House. Each partner pays tax on their share of profits in their country of residence.

For an LLP to have a zero tax rate in the UK, it must:

• Have at least two partners resident outside the UK;

• Not conduct commercial activities in the UK;

• Provide professional services or engage in trading activities.

  
  

LLP reporting requirements include:

1. A profit and loss statement;

2. A directors’ report (designated members’ report for LLPs);

3. Notes to the accounts;

4. Group financial statements and an auditor’s report (if required, e.g., for larger LLPs).

Small or micro LLPs are exempt from audits, similar to small companies.

How Foundry Accounting Limited Can Help

Foundry Accounting Limited specialises in preparing and filing financial reports for UK companies and LLPs, ensuring compliance with HMRC and Companies House requirements. Our services include:

• Preparing accurate annual accounts, tax returns, and VAT Returns;

• Conducting market analysis and tax optimisation for new businesses;

• Supporting audit preparation for large companies;

• Assisting with Confirmation Statements and other filings;

• Providing tailored advice for non-UK residents.

  
  

Our team works quickly, professionally, and confidentially, always within the legal framework. Contact us via email, post, or telephone to discuss your financial reporting needs or prepare for an audit. Let us help you build a compliant and successful UK business.