Statutory accounts

What Are Statutory Accounts?

Also known as “Annual Accounts” or “Year-End Accounts,” statutory accounts are a legal requirement for all UK limited companies. These must be submitted to Companies House within nine months of the end of your company’s financial year.

For small businesses, the preparation of these accounts tends to be more straightforward compared to larger firms.

What’s included in statutory accounts?

• Balance Sheet – A snapshot of your company’s financial position at year-end

• Profit and Loss Statement – A summary of your income, expenses, and profit

• Notes to the Accounts – Additional details that explain items in the accounts

• Director’s Report – A statement from the company’s director(s)

• Accountant’s or Auditor’s Report – A professional assessment

Criteria for small companies

If your company meets two of the following conditions, it is considered as a small business:

• You have a turnover less than £10.2 million

• You have up to £5.1 million on your balance sheet

• You have less than 50 employees

  
  

As a small business, you can send Companies House abridged financial statements. In addition, a director’s report, a profit and loss account, and the option to audit or not are also available to small businesses.

Criteria for Micro-Entities

If your company meets two or more of the following conditions, you are defined as a micro-entity:

• You have a turnover lower than £632,000

• Your balance sheet shows a maximum of £316,000 or less

• You have 10 employees or less

Being a micro-entity means you do not need to prepare complex accounts, and you can send more straightforward balance sheets to Companies House instead. The same exemptions offered to small companies are also given to micro-entities.