When starting out as a limited company director, it is important to understand the various obligations that this entails.
Annual Accounts
In a normal year, accounts are due to be filed with Companies House within nine months following year-end.
In the first year of trading, the clock starts from the date of incorporation (21 months from the date of incorporation).
For example; for a business incorporated on 4th July 2024:
The first accounts will cover the period 5th July 2024 (date of incorporation) through 31st July 2025 (accounting period end date is always set to the end of the month one year after incorporation).
We can start preparing accounts from 1st August 2025 and they have to be filed with Companies House by 5th April 2026.
In future years, the accounting period will cover 1st August 2025 through 31st July 2026 and will be due for filing by the following 30th April 2027; this cycle will continue annually then on the same dates.
The rules for corporation tax are different.
A corporation tax return can only cover a maximum of 12 months.
Continuing the above example:
- For the first year of trade, there will be one set of accounts covering 5th July 2024 through 31st July 2025.
As this is more than 12 months (completely normal for the first year of trade), there will be two corporation tax returns:
one covering 5th July 2024 through 4th July 2025; and
a second one covering the balancing period 5th July 2025 through 31st July 2025.
Corporation tax payment is due nine months and one day after the end of the accounting period.
But the return itself is due 12 months following the end of the accounting period to which they relate, so for the first year:
- Return covering 05/07/24 – 04/07/25 Payment due 6th April 2026, Return due 4th July 2026
- Return covering 05/07/25 – 31/07/25 Payment due 1st May 2026, Return due 31st July 2026
In future years, there will be one corporation tax return, covering a period which matches the accounting dates.
Continuing the above example:
for the next year both accounts and tax return will cover 01/08/25 through 31/7/26).
Accounts will be due to be filed with CH by 30/04/27 and CT due paid by 01/05/27, the CT return itself is due 31/07/27.
If you need assistance preparing your accounts and tax returns please get in touch with us today to arrange a free consultation.