Micro-entity or Small Company Accounts & Filing
Naturally, as accountants, SME Strategies can prepare and file accounts and tax returns for our clients. Where we are different is that we seek to add real value by being a hands-on business advisers as well as accountants. We work with our owner manager clients across all areas of the business to strengthen profitability and help the business to flourish.
All of our incorporated business clients at SME Strategies will either be ‘small companies’ or ‘micro-entities’ under the Companies Act 2006 and subsequent regulations.
For those that want the detail:
A company is ‘small’ if it has any two of the following:
- · a turnover of £10.2 million or less
- £5.1 million or less on its balance sheet
- 50 employees or less
If so, a small company can:
- · use the exemption so the company’s accounts do not need to be audited
- · choose whether or not to send a copy of the director’s report and profit and loss account to Companies House
- · send abridged accounts to Companies House
Micro-entities are very small companies. A company will be a ‘micro-entity’ if it has any two of the following:
- · a turnover of £632,000 or less
- · £316,000 or less on its balance sheet
- · 10 employees or less
If so, a micro-entity can:
- · prepare simpler accounts that meet statutory minimum requirements
- · send only the balance sheet with less information to Companies House
- · benefit from the same exemptions available to small companies
The company’s accounts referred to above are known as ‘statutory accounts’ and are prepared from a company’s underlying accounting records which may well be held on a cloud accounting package such as Xero. The deadlines for filing at Companies House and HMRC are very important and should not under any circumstances be missed.
- Accounts for private companies (which all our clients are) should normally be delivered to Companies House nine months from the accounting reference date (which is usually the year end).
- The deadline to pay Corporation Tax due is usually nine months and one day after the end of the accounting period. There is a different deadline for submitting a company tax return to HMRC which is twelve months after the end of the accounting period it covers. A penalty is imposed by HMRC if the deadline is missed.
We can assist with accounts preparation and filing with Companies House and also prepare and file the Corporation Tax return to HMRC. We also help with VAT returns and queries where required.
We offer a full range of accountancy services.