Preparing for your first financial year end as a new company

If your company was incorporated in the last twelve months, your first financial year end is approaching. For many founder-directors, this is the first time they have had to think about statutory accounts, corporation tax, and Companies House filing deadlines. The good news is that the requirements for a small company are manageable — provided you start preparing now rather than the week before the deadline.

Key dates to know

Your accounting reference date is set automatically by Companies House — it is the last day of the month in which your company’s anniversary of incorporation falls. Your first accounts must be filed within 21 months of incorporation (for Companies House) and your corporation tax return within 12 months of the end of the accounting period (for HMRC). These are different deadlines with different penalties.

What you need to prepare

At a minimum, you will need a complete record of all income and expenditure, bank statements for every account held by the company, details of any assets purchased, a record of any dividends declared and paid, and confirmation of your share capital structure. If you have been keeping your bookkeeping up to date throughout the year, this should be straightforward. If not, now is the time to catch up.

Micro-entity accounts

If your company qualifies as a micro-entity — broadly, turnover under £632,000, balance sheet total under £316,000, and fewer than 10 employees — you can file abbreviated accounts with Companies House. These are significantly simpler than full accounts and do not require an audit.

Getting help

For your first year, it is usually worth engaging an accountant — even if you plan to manage your own bookkeeping going forward. The cost of professional accounts preparation for a small company is modest, and the peace of mind of knowing your filings are correct is worth the investment. HMRC penalties for late or incorrect returns start at £100 and escalate quickly.