Most businesses need to produce accounts at least once a year. For a sole trader, contractor working without a limited company or a freelancer, this is generally at the same time as your Self Assessment Tax Return (SATR) is due. For a limited company, it will be after the financial year ends, whenever that might be. Company Directors therefore need both to ensure Accounts are produced for the company, and also a SATR for themselves personally.
We can produce, check and submit both SATR and also Annual Report and Accounts for limited companies, all in a highly cost-effective way.
- Full annual accounts produced by our experienced accounts team
- Full Self Assessment Tax Return compiled and submitted to HMRC on your behalf
- Everything we do is HMRC-compliant
- Returns checked and submitted to HMRC and Companies House as required.
Annual Report and Accounts & Corporation Tax Return
Any limited company is required to produce an annual report and set of accounts once per year. This is placed on the public record at Companies House and is often used for credit scoring, deciding the amount of interest on a loan, and even in preliminary valuation of a company. In addition, the accounts will form the basis for the corporation tax return which tells HMRC how much tax is owed. If you have several shareholders, it also keeps them informed on how the company's doing.
Aside from accounts being a requirement, they can tell you how well your business is doing and may highlight areas that need to be addressed. For example, if you sell products or offer a service and your accounts show that your margins are too slim, you may decide to increase your prices or negotiate harder with your suppliers to increase profit and keep your business healthy.
The annual report and accounts has to be prepared by a limited company at the end of its financial year, to explain to the shareholders and other interested parties how the company has performed over the year. The annual report may contain, among other things, a;
- Chairman's statement.
- Directors’ report.
- Profit and loss account.
- Balance sheet.
- Notes to the accounts.
- Auditors’ report (only for large companies - see our article)
- Strategic report. (only if required by the Board of Directors or shareholders)
- Corporate governance statement (only if required by the Board of Directors or shareholders)
- Directors' remuneration report (in some cases)
The report is required by section 415 of the Companies Act 2006.
Some of the benefits of using Whitehill to compile and submit your Annual Report and Accounts are;
- Full annual report and accounts production by experienced staff
- Accounts are compliant with the latest Financial Reporting Standards and legal requirements
- Compliant with HMRC requirements for use in Corporation Tax submissions
- Compiled and submitted to Companies House and HMRC
- Corporation tax return checked, compiled and submitted to HMRC as part of the service
Personal Tax Return (Self Assessment)
Whatever type of business you have, be it a sole trader, contractor or limited company, a tax return must be completed to declare your income to HMRC and to let them know how much tax is due. The Self Assessment Tax Return (SATR) applies to individuals, and you must complete a SATR if you're a sole trader, company director or you're asked to do so because you have high income or complex tax affairs. HMRC gives more details on who needs to complete a SATR here.
Unfortunately, not submitting your tax return on time can result in considerable penalties and interest being accrued by HMRC. This is why it’s so important to put arrangements in place early on to ensure everything is completed on time.
In addition, if you're organised with your tax affairs you'll know how much tax is due in advance with a good amount of time to pay your balance to HMRC.
The SATR is a form which covers most income earned in the fiscal (tax) year which runs from 6th April to 5th April the following year. The SATR must be filed with HMRC, if filed online, by 31st January after the end of the relevant fiscal year. A tax return that's not filed online must be with HMRC by 31st October after the end of the fiscal year.
It's sometimes the case that a sole trader's accounting year does not match the tax year. In this case they will report on their tax return their earnings for the accounting year that finished during that tax year. There are special rules for the early and final years of a business's life.
Some income is earned tax-free and is therefore not reported on the tax return at all.
Some of the benefits of using Whitehill to handle your SATR are:
- Peace of mind. By using professionals you know that your tax calculations will be correct and accurate given the information to hand.
- Save time. In most cases it will take you a lot longer to complete your own tax return than it would for Whitehill. This time could be better spent running your business!
- Claiming everything you’re entitled to claim. Although Whitehill are not tax advisers, we may be able to find areas to reduce the tax owed. This is usually in the form of under-declared expenses.