Do You Need An Accountant To Submit Limited Company Accounts?

January 21, 2022 by Accounting Firms

These days, it’s straightforward to launch a limited company. You can ask an accountant to register a limited company on your behalf, use an intermediary that offers incorporation services, or register it yourself directly with Companies House.

Of course, running a limited company and dealing with the accounts is another matter. As you can imagine, keeping the correct records, recording the right information, and submitting the annual accounts to Companies House is quite an involved process.

Limited company accounts are far more complex compared with sole trader accounts, for example, and that’s why it almost always makes sense for an accountant to do that work for you. There’s no legal requirement in the UK for companies to use accountants for annual filings. But, there are numerous advantages of doing so. They are as follows:

New Company Formation

Setting up a new limited company can be an exciting time for any entrepreneur. Whether it’s a new business or you are converting from sole proprietorship to a limited company, you’ll need to register your new business with Companies House correctly.

Payroll

Large companies usually arrange their payroll in-house. But, startup businesses and smaller firms will find it easier and more cost-effective to outsource that element of their accounting procedures to accountants. Payroll can be quite a daunting task for a small business owner to complete each month independently. Accountants can take care of your limited company’s payroll, ensuring all paperwork gets filed with HMRC correctly and meets all necessary regulations.

Quarterly VAT Returns

The current threshold for VAT registration is £85,000, but even if you don’t intend on making such a turnover in the first year, it could be beneficial to become VAT-registered. Companies registered for VAT must submit quarterly VAT returns to HMRC.

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One of the biggest challenges that limited companies face is how VAT rules and regulations are constantly changing. Most limited companies are unlikely to know about the various changes and updates. Outsourcing your VAT returns to accountants means you don’t need to break a sweat or panic whenever your quarterly VAT return deadline looms.

Tax Returns

Limited companies must submit annual tax returns just like people do through self-assessment. They must declare to HMRC their taxable profit, even if it’s below the threshold for paying tax or they’ve made a loss. Tax returns for limited companies require detailed information to get submitted that’s different from what you’d submit to Companies House.

Annual Accounts

There’s no getting around the fact that you must submit complete and accurate company accounts to both HMRC and Companies House each year. Failure to do so could result in financial penalties and getting struck off the companies register with Companies House. In worst-case scenarios, companies could even be on the receiving end of legal action. The good news is your accountant won’t let that happen to you, and they’ll ensure the correct and timely filing of your accounts.

Bookkeeping

As with any business, you must maintain accurate records of the money you spend and receive. You might think that you could simply hire a bookkeeper to handle logging details like receipts and invoices. But, it often makes sense to have your accountant do the bookkeeping for you. They don’t typically charge more than an independent bookkeeper, and you’ve got the advantage that they already handle your company accounts and understand your business.