Limited Company Year End Checklist for UK Directors

A limited company year end is not just a date on the calendar. It is the point at which your books are closed, your profit is fixed for the period, and the clock starts on your filing deadlines. Doing a little preparation before and just after the year end makes the accounts quicker, cheaper and less stressful. Here is a practical checklist.

Key takeaways

• Know your accounting reference date, shown on your Companies House record.
• Do your planning before the year end. Afterwards, you mainly record what happened.
• Reconcile bank accounts, review debtors and creditors, and check the director's loan account.
• Gather records and then pass them to your accountant early.
• Deadlines are strict. Check the current ones on GOV.UK.

What is a company year end?

The year end is the last day of your company's accounting period. Each period produces statutory accounts for Companies House and a Company Tax Return for HMRC. Your date was set when the company was formed and can be seen on the Companies House register. For deadlines, see our guide to company accounts deadlines and the official GOV.UK annual accounts guidance.

Before the year end: planning

• Review profit so far. It tells you roughly what Corporation Tax to expect. See our guide to marginal relief.
• Think about purchases. Equipment bought for the business may qualify for capital allowances, but buy for a real business need, not just a tax reason.
• Plan salary and dividends. Our guide to salary vs dividends explains the trade-offs.
• Check the director's loan account. A balance owed to the company at year end can have tax consequences. See directors' loan accounts.

After the year end: records to gather

The checklist

1. Confirm the year end date and filing deadlines.
2. Reconcile every bank, card and loan account to the year end.
3. Make sure all income and expenses are recorded in the right period.
4. Chase old unpaid invoices and review any bad debts.
5. Review the director's loan account and fix problems early.
6. Gather asset, stock and payroll records.
7. Check VAT returns agree to the ledger if you are VAT registered.
8. Send everything to your accountant with a short note of unusual items.
9. Review the draft accounts and ask questions before approving.
10. Diarise filing and payment dates for Companies House and HMRC.

Worked example (illustrative)

"Nadia", an illustrative example, runs a small consultancy company. Two months before the year end she reviews her profit, notices a director's loan balance she owes the company, and repays it before the date. Straight after the year end she exports her bank statements and invoice lists and sends them to her accountant. The accounts are drafted early, and she has time to plan the tax payment. Compare "Leo", another illustrative example, who sends a shoebox of receipts nine months later. His records take far longer to sort, and he is up against the deadline with little room for planning.

Common mistakes

• Leaving everything until the deadline. Rushed accounts are more error prone.
• Mixing personal spending with company money. It complicates the director's loan account.
• Forgetting the tax payment date. Corporation Tax is normally due earlier than the return deadline. Check GOV.UK.
• Ignoring bad debts and old invoices. They can distort profit.
• Not asking questions about the draft accounts. You sign them off as a director, so make sure you understand them.

We prepare statutory accounts and Company Tax Returns and give you a clear plan well before the deadline. See our Company Accounts service or contact us.