File year end accounts

[Nat4]

File accounts with companies house
We no longer have an accountant or a professional advisor and we need to file the accounts with companies house. I’m the bookkeeper so have never filed accounts and wanted to know which option I select in companies house in the picture.

Is it possible for me to file myself I have all our data in xero as I’m
The book keeper and one of the two directors .

 

[Deleted member 335660]

When I had a company the rules were you needed to have an external accountant to sign off the accounts and the Directors also had to have a meeting that agreed the accounts were accurate.

Perhaps the law has changed.

 

[Ozzy]

When I had a company the rules were you needed to have an external accountant to sign off the accounts

This is not the case now, a director can file the accounts with Companies House themselves. In fact, the narrative from Government these days are they want Companies House to be self-service and the public to be able to do everything themselves.

Directors also had to have a meeting that agreed the accounts were accurate

If there are more than one director, yes this meant to happen.

Assuming your company is categorised as a small business then you will find you can fill in your accounts data and submit your accounts online through the Gov.Uk website if you have the company authentication code.
Alternatively, if you are using software such as Xero, QuickBooks, etc, then you will see this software has the option to submit your accounts to Companies House automatically.

 

[UK Contractor Accountant]

The problem these days is that Companies House accept any old rubbish sent to them to put on Public Record.

There is no check whether the statutory accounts comply with Accounting Standards and/or Companies House disclosure requirements or even whether Micro Company status applies.

 

[UK Contractor Accountant]

The registrar does not currently have the power to query the information we receive before placing it on the register. Incorrect information is a common cause of complaint.

Another government consultation is seeking to address this issue by strengthening the powers of the registrar. This includes giving a discretionary power to query and check information before it’s placed on the register.

While the vast majority of companies file correctly, we see cases of false information being filed - often by accident but sometimes deliberately. For example, we know some companies file micro-entity accounts when they are not eligible, and law enforcement bodies have highlighted that this practice is commonly used in money laundering cases as a way to hide information.

We want the register to inspire trust and confidence. By improving the quality and integrity of the financial information on the register, we can really make a difference and help drive confidence in the UK economy.

The corporate transparency and register reform consultation, published in 2019, sowed the seeds for significant reform to the role of Companies House to improve business transactions and tackle economic crime.

In this consultation we asked how the financial information on the register could be improved. Respondents challenged us to be more bold and ambitious in our proposals and suggested a wide range of improvements that could be made to improve the quality, timeliness and value of the financial information.

The package of proposals in this consultation largely reflect those suggestions and take account of evidence that we've gathered through our work and engagement with other government departments and agencies.

Balancing the need to tackle fraud and improve quality against the need to not add burdens on companies, is challenging - especially in these difficult times. We've been talking to stakeholders throughout the development of the proposals and this consultation gives wider audiences the opportunity to give their views.

The consultation is split into 3 parts:

Part A – How accounts are delivered to Companies House
The first part of the consultation focuses on how accounts are delivered to Companies House and includes proposals to:

• progress towards filing once with government
• require accounts to be delivered digitally and to be fully tagged using iXBRL
• reduce timescales for accounts to be filed

Part B – What information should be filed at Companies House
This part of the consultation outlines the information that is currently required by Companies House and asks whether further information might improve the value of the register. It includes proposals to:

• require company directors to confirm the company’s eligibility to file the specific type of accounts being used
• review small company accounts filing options

Part C – What Companies House does with this information
The final part of the consultation explores what Companies House should do with information it receives in accounts. It sets out proposals to:

• increase the checking of accounts
• improve the way financial information is displayed on the register

The proposals will give Companies House a more effective role in assisting the government’s wider efforts to tackle economic crime - by improving the quality of the financial information available about companies and other business entities and ensuring that it’s up to date.

Respond to the improving the quality and value of financial information on the UK companies register consultation.

The consultation closes on 3 February and we look forward to hearing your view.

 

[Ozzy]

Just to add, UKBF has an webinar with the Policy Director of Companies House where we will be talking about these consultations after the Government announces their response to them. Bit awkward setting the webinar date until that’s announced…even though “we” know what it says.

 

[Spur Support Services]

As you will also need to file the accounts and associated tax return with HMRC, this response covers both.

The accounts are the responsibility of the Directors and therefore you must take care that the Directors are reviewing and authorising the documents that are going to be submitted. The Directors need to "sign" the accounts.

Although micro accounts have more limited filing requirements, you should familiarise yourself with the UKGAAP rules as reduced disclosures still means that the full accounts are prepared in the background.

When preparing the tax computations, you also need to take care that you have made the correct deductions and adjustments to create taxable profits. This may be affected by (or affect) previous submissions and therefore as the accounts and tax submissions are being brought "inhouse", then it is advisable to ask for historic information from the previous accountants, as if it was a qualified accountant taking over the work, just to ensure that the company fully understands the brought forward position, balances and historical tax submissions and data.

If you are a self employed bookkeeper, then you have to consider whether your professional body allows you to perform such work and ensure that you have appropriate professional indemnity insurance in case you make any significant errors in the tax compliance work you are performing.

In the "how to do it"
Simplest way for Directors to Self submit their accounts and tax return is by using the HMRC online facility to perform both Companies House and HMRC filings. https://www.gov.uk/file-your-company-accounts-and-tax-return . Once you have completed the accounts data you could do this with them.
NB Directors should not release their Director's Government Gateway sign in details to you.
If you are self employed you should apply to be an Agent. I am not sure whether HMRC may have some reservations if you aren't a Regulated Accountant. Once you have an Agency reference then request client authorisation.
If you are an Employee, the Directors can "Add a Team Member" within the "Manage Account" section of their Business Government Gateway account, which allows you to have your own sign in details. I am unsure as to whether non-Directors can use the Online Accounts filing service.

Also check whether the documents can be prepared direct from the Company's accounting system as all major systems are readying themselves for MTD and may already have some direct filing capabilities.

 

[Deleted member 335660]

This is not the case now, a director can file the accounts with Companies House themselves. In fact, the narrative from Government these days are they want Companies House to be self-service and the public to be able to do everything themselves.

If there are more than one director, yes this meant to happen.

Assuming your company is categorised as a small business then you will find you can fill in your accounts data and submit your accounts online through the Gov.Uk website if you have the company authentication code.
Alternatively, if you are using software such as Xero, QuickBooks, etc, then you will see this software has the option to submit your accounts to Companies House automatically.

Seems a good loop hole then for false accounts and fraud, devaluing the value of being a limited company. Shame.

 

[Paul Norman]

Seems a good loop hole then for false accounts and fraud, devaluing the value of being a limited company. Shame.

It is.

The software is clunky, though, and fairly painful to use. Which is, by itself, a good motivation to get my accountant to do it, as they know how to use it, and for them it is less clunky, I suspect.

Sadly, you can file pretty much anything. I know of a number of small businesses who just 'make up the numbers' and don't actually keep any recognisable accounts.

Of course, there is still some value to me in having accurate accounts, and hence I still do that, and use an accountant to keep us on the straight and narrow. Leaving aside the legalities of it all, knowing where you are is kind of useful.

 

[Deleted member 335660]

It is.

The software is clunky, though, and fairly painful to use. Which is, by itself, a good motivation to get my accountant to do it, as they know how to use it, and for them it is less clunky, I suspect.

Sadly, you can file pretty much anything. I know of a number of small businesses who just 'make up the numbers' and don't actually keep any recognisable accounts.

Of course, there is still some value to me in having accurate accounts, and hence I still do that, and use an accountant to keep us on the straight and narrow. Leaving aside the legalities of it all, knowing where you are is kind of useful.

Good for you Paul. Sadly the country seems to be going down hill in more ways than one.