MICRO-ENTITY ACCOUNTS FOR LIMITED COMPANIES

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Our micro-entity accounts service takes care of the preparation and submission of your private limited company's statutory accounts and tax returns. A copy of your micro-entity accounts should be sent to all shareholders, Companies House and HMRC. The accounts must include your company’s:

- Balance sheet;

- Profit and loss account; and

- Notes about the accounts.

MICRO-ENTITY ACCOUNTS PREPARATION & SUBMISSION SERVICE

When preparing statutory accounts, there are 3 size classifications of companies to consider; small, medium or large. Within the small company classification, there is a sub-set called a micro-entity. Your company will be classified as a micro-entity if it has any 2 of the following:

- A turnover of £632,000 or less;

- £316,000 or less on its balance sheet; and

- 10 employees or less.

If your company is a micro-entity, it will benefit from the same exemptions available to small companies. This means we can prepare simpler accounts that meet statutory minimum requirements and send only your balance sheet (with less information) to Companies House.

Any companies that do not meet the criteria for micro-entities; small or medium are large and they will have to prepare and submit full accounts.

CORPORATION TAX

Limited companies are subject to Corporation Tax on their profits. If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad. If your company is not based in the UK but has an office or a branch here, it only pays Corporation Tax on profits from its UK activities.

If your company receives a ‘notice to deliver a company tax return’ (CT603) from HMRC, it must send a company tax return (CT600). This notice is sent to every company, HMRC believes to be active and it defines requirements which include:

- A copy of the micro-entity accounts for the period covered by the company tax return; and

- Details of how the specified information has been calculated from relevant figures in the accounts.

THE DEADLINE

The deadline to file your company tax return is 12 months after the end of the accounting period. The small profits rate is 19% (companies with profits under £50,000).

ADVICE & GUIDANCE FOR YOUR SMALL BUSINESS

Xcountant® is a 'reasonably priced' London-based accounting firm. We help business owners save time and money while complying with rules and regulations. Our accountants prepare your micro-entity's statutory accounts and help you to understand its financial position; both on its own and within its industry. The profit and loss account and balance sheet are some of your most powerful tools for understanding your business's health and making informed decisions. Join Xcountant® now!