Accounting & Compliance

If you’ve recently started a UK limited company, your first year-end is a major compliance milestone. It marks the end of your company’s first financial period and triggers several legal obligations—including filing accounts and tax returns.

This article explains how to prepare for your first year-end, what you must submit, and how Dragonfly Associates helps clients meet their obligations, subject to agreement.

What Is a Year-End for a UK Company?

A year-end (or accounting reference date) is the end of your company’s financial reporting period.

For most companies, Companies House sets the first year-end as:

• 12 months from the end of the month of incorporation

For example:
Incorporated on 5 June 2025 → Year-end will be 30 June 2026

You can change your year-end if needed, but it’s best to plan early. We can assist with year-end alignment where relevant.

What Must Be Filed at Year-End?

As your company reaches its year-end, you’ll need to file:

• Annual accounts (to Companies House)
• Corporation Tax return (CT600) and accounts (to HMRC)
• Confirmation Statement (if due around the same time)

Deadlines:

• Annual accounts: 21 months after incorporation (first year only)
• Corporation Tax return: 12 months after year-end
• Corporation Tax payment: 9 months + 1 day after year-end

Dragonfly Associates monitors these deadlines and manages filings for clients under our accounting or compliance packages.

Preparing Financial Records

You’ll need to prepare:

• A full record of company income and expenses
• Invoices, receipts, and bank statements
• Payroll summaries (if applicable)
• Director expense claims and dividends (if taken)

These form the basis of your accounts and tax return. We provide clients with digital bookkeeping tools and templates to make this easier.

Accounting Systems and Support

To prepare for year-end, make sure you have:

• A separate business bank account
• Organised accounting software (e.g. Xero, FreeAgent, QuickBooks)
• Up-to-date records for all transactions

Dragonfly Associates provides accounting software setup, training, or managed bookkeeping depending on your selected service plan.

Common Mistakes to Avoid

• Mixing personal and company finances
• Not reconciling accounts regularly
• Failing to register for Corporation Tax
• Missing VAT or PAYE registration (if required)
• Ignoring the deadlines or relying on memory

We help clients avoid these issues by offering ongoing monitoring, alerts, and documentation checks.

Tax Planning at Year-End

Year-end is also an opportunity to:

• Review allowable expenses
• Optimise director pay structure
• Plan for dividends or bonuses
• Identify tax relief opportunities (e.g. R&D, capital allowances)

Dragonfly Associates provides advisory sessions for clients under accounting or director support agreements.

Frequently Asked Questions

Can I change my year-end?

Yes, but you must apply through Companies House. It must comply with UK rules on length and timing.

What happens if I miss the deadline?

Late filings result in automatic penalties from Companies House and HMRC. Repeated lateness may trigger further enforcement.

Can I do it all myself?

You can, but most directors prefer expert help to avoid errors, delays, or tax inefficiencies. We offer full year-end support.

Navigate Your First Year-End with Confidence

Your first year-end sets the tone for your company’s future compliance. With the right systems and support, it becomes a smooth and valuable process—not a stressful deadline.

Dragonfly Associates helps new companies prepare, file, and optimise their year-end accounts and tax submissions—delivered under clearly defined service agreements.

To prepare for your first year-end or receive a personalised checklist, contact us today.

All UK companies—whether trading, dormant, or new—must file annual accounts with Companies House. These accounts provide a formal snapshot of the company’s financial position and must be filed accurately and on time to avoid penalties or legal complications.

This guide explains what annual accounts are, who must file them, and how Dragonfly Associates helps clients stay compliant—subject to agreement.

What Are Annual Accounts?

Also known as “statutory accounts,” annual accounts summarise the financial activity of your company during its accounting period. They typically include:

• A balance sheet
• A profit and loss account
• Notes about the financial activity
• A director’s report (for some companies)
• An auditor’s report (if applicable)

The exact content depends on your company size and trading activity. Small companies may be eligible for simpler reporting formats.

Who Needs to File Annual Accounts?

All limited companies registered in the UK are required to file accounts, including:

• Active trading companies
• Dormant companies (with simplified accounts)
• Companies in the process of dissolution (unless already struck off)

Sole traders and partnerships do not file accounts with Companies House, but may still file financial records with HMRC.

When Are Annual Accounts Due?

Your first accounts are due:

• 21 months after incorporation, or
• 9 months after your accounting reference date (ARD), for subsequent years

Late filings are subject to automatic penalties:

• Up to 1 month late: £150
• 1–3 months late: £375
• 3–6 months late: £750
• Over 6 months late: £1,500

Fines double if you’re late two years in a row. Dragonfly Associates helps clients track and meet their filing deadlines.

How to File Annual Accounts

Step 1: Prepare the Accounts

Depending on your company’s size and complexity, accounts can be prepared by:

• Your internal finance team
• An external accountant
• A bookkeeping or compliance provider like Dragonfly Associates

We ensure your accounts are prepared in line with UK accounting standards and Companies House format requirements.

Step 2: File with Companies House

Accounts can be filed:

• Online via Companies House WebFiling
• By post using the appropriate forms
• Through accounting software that supports iXBRL format

We handle electronic filings for clients enrolled in our accounting or compliance packages.

Step 3: File with HMRC

Limited companies must also file accounts with HMRC, usually alongside their Corporation Tax return. The deadlines are different, so both timelines must be managed carefully. We coordinate filings for both agencies where agreed.

Exemptions for Small and Dormant Companies

Small companies may be eligible for:

• Filing abridged accounts (with less detail)
• Audit exemption
• Reduced disclosure requirements

Dormant companies can file simplified dormant accounts. Dragonfly Associates helps determine your eligibility and prepares the correct documentation accordingly.

Frequently Asked Questions

What happens if I miss the deadline?

You’ll receive a fine from Companies House. Continued failure may lead to strike-off proceedings or director liability.

Can I change my accounting reference date?

Yes. You can do this through Companies House to align your financial year with tax deadlines or business cycles. We assist with ARD changes on request.

Do I need an accountant to file?

Not by law, but it’s highly recommended to ensure compliance, accuracy, and efficient tax reporting. We offer full-service support under contract.

File Confidently and Stay Compliant

Filing annual accounts is not just a legal requirement—it’s also a key indicator of business health and reliability. Mistakes or delays can lead to penalties and damaged credibility.

Dragonfly Associates provides timely, accurate, and legally compliant account filing support, tailored to your business and available under agreed service plans.

To meet your next filing deadline without stress, contact us today.