Accounting & Audit for UK Company

Many years of experience in servicing various organizations and the experience of our employees allows us to solve any professional tasks with maximum benefit for our customers.

Since self-accounting takes a lot of time, and it is expensive to maintain a full-time accountant, we can offer you both one-time services and full professional accounting support for your company.

Qualified personnel who are ready to take care of the bookkeeping and tax accounting of your foreign company, as well as cooperation with independent auditors and with the tax authorities of other states at your disposal.

General accounting information for the UK companies

Every company registered in the UK must keep adequate accounting records that are sufficient to show and explain the company’s transactions, to disclose with reasonable accuracy, at any time, the financial position of the company at that time.

All limited companies must also deliver accounts to Companies House – whether they trade, or not.

Generally, accounts must include:

• a profit and loss account (or income and expenditure account if the company is not trading for profit)
• a balance sheet signed by a director on behalf of the board and the printed name of that director
• notes to the accounts
• group accounts (if appropriate)

Companies registered in the UK are required to submit audited financial statements to Companies House annually. However, according to the Companies Act 2006, two categories of companies are eligible for exemption from audit:

1. Dormant companies
2. Small companies

In accordance with Article 480 of Companies Act 2006, companies classified as ‘dormant’ have the right to submit unaudited financial statements to Companies House.

A company is considered ‘dormant’ if it has had no ‘significant accounting transactions’ during the accounting period. When classifying a company as dormant, the following transactions are not taken into account:

• payment for shares taken by subscribers to the memorandum of association
• fees paid to Companies House for a change of company name, the re-registration of a company and filing confirmation statements (or annual returns)
• payment of a civil penalty for late filing of accounts

Company may be ‘dormant’ if it’s not doing business (‘trading’) and doesn’t have any other income, for example investments.

In accordance with Article 477 of Companies Act 2006, companies classified as ‘small’ have the right to submit unaudited financial statements to Companies House.

A company is considered ‘small’ if at least two of the following three conditions are met for it:

• Turnover – not more than GBP 10 200 000
• Balance sheet total – not more than GBP 5 100 000
• Number of employees – not more than 50

Public companies and companies in some regulated industries cannot be classified as ‘small’.

We provide the following accounting services:

• Inspection of the provided documents for completeness and compliance with the company’s business activities;
• formation of a set of supporting documents to be provided to auditor;, for the company’s archive;
• preliminary assessment of the financial result and forecast of the amount of liabilities for corporate tax, VAT, etc.;
• preparation of accounts, formation of profit and loss statement and balance sheet in accordance with UK GAAP and IAS/IFRS and corporate legislation (Companies Act 2006);
• preparation and submission of accounting statements based on the provided supporting documents;
• by additional client’s request:
  • keeping accounting records of the company with the provision of interim financial results on a monthly, quarterly or semi-annual basis.

Consolidated financial statements

Each English company which has subsidiaries shall prepare group accounts with the financial statements of its subsidiaries.

However, for parent companies that qualify as ‘small’ this is optional.

A group of companies is classified as ‘small’ if the following conditions are met:

• Turnover – not more than GBP 10 200 000
• Balance sheet total – not more than GBP 5 100 000
• Number of employees – not more than 50

We also provide services for the preparation of consolidated financial statements for a group of companies, if this is required in accordance with the Companies Act 2006 or in accordance with your request.

When preparing consolidated financial statements, if necessary, you can also use our services to audit the operations of subsidiaries registered in other jurisdictions.

Reporting deadlines

Unless first accounts, the time normally allowed for delivering accounts to Companies House is:

• 9 months from the accounting reference date, for a private company
• 6 months from the accounting reference date, for a public company

The overdue filing of a company’s accounts is subject to a late filing fee.

The amount of the penalty depends on how late the accounts arrive and whether the company is private or public.

You are advised to refer to your consultant in order for him to orient you on individual deadlines of your company for filing due date of the company’s accounts.

Tax reporting

In addition to annual accounts a company that is a tax resident of the UK is taxed on income received or derived from all taxable sources in the UK and abroad.

For all Limited companies, the income tax rate is 19%.

LLP companies must pay taxes at the place of residence of partners and do not pay taxes in the UK, provided there is no activity in the UK.

In accordance with the current tax legislation, the tax is paid within 9 months after the end of the tax period.

The tax return must be submitted to the HMRC within 12 months after the end of the reporting period.

 

We are ready to assist you in the preparation of calculations of the estimated profit for the current year as well as the assessment of tax liabilities for corporation tax and other taxes.

VAT returns

It is also necessary to take into account vat-related issues. In the UK, VAT registration obligations do not arise as long as the sales turnover in the country is below the registration threshold, which is GBP 85 000. At the same time, initiative registration is possible.

The VAT rate in the UK is 20%.

If your English Company no longer needs to be registered for VAT due to a change in the direction of activity, or due to the termination of activity, or for any other reason, we also provide services for de-registering the company with VAT in accordance with the current English corporate and tax legislation.

Our services

We provide a full range of services related to the preparation of accounting and tax reports, audit and submission of accounts to the public authorities of the UK, as well as accounting, tax and administrative support of the existing offices of our clients’ companies in the UK.

Having our own presence in the UK since 2004, we have acquired a unique practice of direct cooperation on the issues of our clients’ companies with government institutions, such as Companies House, HMRC, VAT Service, The Department of Customs and Excise, National Insurance and others.

Get advice before getting started 

Since the UK does not belong to offshore jurisdictions, and an English company is obliged to submit reports and pay taxes on a regular basis in accordance with the procedure established by law, before starting the registration of an English company, we recommend that you get advice from lawyers and auditors regarding the subsequent administration of the company.

Basic fees for our services

SERVICES	Fee [1]
Quarterly accounting services
Preparation and submission of VAT declaration	100-400 USD per hour
Yearly accounting services
Preparation and submission of Dormant Accounts (for companies that did not operate in the reporting period)	770 USD
Preparation and submission of reports for a company that has started operating	100-400 USD per hour
Additional services
VAT registration	1 320 USD
VAT de-registration	1 200 USD
Consultations, communication with auditors and government agencies	100-400 USD per hour

 

[1] The price is shown without VAT. UAE VAT rate –  5%.