0207 608 5500
Search ideas, news and case studies
Blog Categories
Annual Accounts vs Annual Returns: What you need to know
The information in the blog below may no longer be relevant. Please view the updated information here:
- Confirmation Statement or Annual Return?
- When do I need to file my Annual Accounts?
- Can you help us with our annual filings?
There is mass confusion surrounding the annual accounts and the annual returns (now officially called a 'Confirmation Statement' in the UK). Some people mistake one for the other; some people recognise one but fail to recognise the other and some people completely ignore them both.
However, it is easy to see why there’s uncertainty…
- They’re both compulsory filing obligations for a private company limited by shares
- They’re both required regardless of a company’s trading status (unless a company is dissolved or in the process of being dissolved)
- They’re both delivered to Companies House
- They’re both delivered annually (and they both have annual in their name!)
Annual Accounts
Detail a company’s financial dealings. If a company is dormant the directors can file ‘dormant company accounts’ rather than the normal accounts.
If annual accounts are delivered after the deadline a penalty is imposed by Companies House:
| How late are the accounts delivered? | Penalty |
| Not more than one month | £150 |
| More than one month but not more than three months | £375 |
| More than three months but not more than six months | £750 |
| More than six months | £1500 |
If you have missed the deadline and decide that you would rather close the company than pay the penalty you can request a dissolution instead of filing annual accounts. If you have missed the deadline due to special circumstances you can appeal against the penalty. If annual accounts are not delivered at all, Companies House will close the company.
There is no Companies House fee for filing annual accounts.
Annual Returns (now officially called a 'Confirmation Statement' in the UK)
A ‘snaphot’ of a company’s current, non financial, situation. The report is made up of officer, share and address information, as well as a small section dedicated to the company’s industry (via a ‘sic code’ that matches the company’s industry – dormant company’s have a specific code: 99999).
Companies House do not impose an automatic penalty for late filing of the confirmation statement, but your company could be struck off the register if overdue for too long, and late filing can also damage your company's reputation. Failing to file is a criminal offence; if you fail to file at all, directors or LLP designated members could be prosecuted or personally fined, Companies House may take steps to strike your company off, and you can be fined up to £5,000.
The Companies House fee for filing your confirmation statement is £50 (online filing fee).
We hope that clears things up! If you have any questions regarding this post simply get in touch
