How to complete a limited company year-end: The full process

Year-end is another one of those responsibilities business owners have when running a Limited Company. This is the point where your company’s financial year officially closes, and you must file accounting reports with HMRC and Companies House.

If you’re feeling overwhelmed by the process, you’re not alone. Completing a company year-end involves multiple steps, strict deadlines, and potential complexities that could land you in hot water with tax authorities. In this blog, we’ll break down everything you need to know—step by step—so you can see exactly what’s involved (and why most just end up calling an accountant). 

1. Understanding the Company Year-End Process

Before getting into the nitty-gritty, let’s define what company year-end actually means. Your company’s financial year typically spans 12 months from its incorporation date or its last accounting period. At the end of this period, you must prepare and submit several documents, including:

• Annual accounts (also called statutory accounts) to Companies House
• Company Tax Return (CT600) to HMRC
• Corporation tax payment (if applicable)

Companies House gives you 9 months from your company year-end date to submit your accounts, file any later than this and you best prepare for some hefty fines. Each step of the year-end process requires accuracy and compliance with accounting standards. Let’s break it down further.

2. Preparing the Year-End Accounts

Your statutory accounts provide a financial insight into your business over the past 12 months. They must be prepared in accordance with UK accounting standards, such as FRS 102 or FRS 105 (for micro-entities). These accounts include:

• Profit and Loss Statement – Showing company income, expenses, and profit/loss
• Balance Sheet – Outlining assets, liabilities, and shareholder equity
• Notes to the Accounts – Explaining key financial information
• Director’s Report (for larger companies) – Summarising financial performance

The Steps to Prepare Your Year-End Accounts

1. Reconcile all transactions – Ensure your bookkeeping is up to date and that every transaction is recorded correctly.
2. Check for outstanding invoices – Chase unpaid invoices and pay outstanding supplier bills.
3. Review expenses – Categorise all allowable expenses to maximise deductions.
4. Depreciate assets – If you have assets like machinery, vehicles or equipment, account for depreciation.
5. Adjust accruals and prepayments – Ensure revenue and expenses are recognised in the correct accounting period.
6. Finalise payroll records – Reconcile salaries, bonuses, and PAYE tax contributions.

Once completed, these accounts must be filed with Companies House within 9 months of the company’s year-end and with HMRC within 12 months of the company’s year-end.

3. Submitting Your Company Tax Return (CT600)

The Company Tax Return (CT600) tells HMRC how much Corporation Tax you owe. Even if your business made a loss, you must still file this return.

Steps to Complete the CT600:

1. Calculate your taxable profit – This is your total profit after allowable expenses and tax adjustments.
2. Apply any tax reliefs – R&D tax credits, capital allowances, and any applicable reliefs should be included.
3. Work out Corporation Tax owed – The standard rate is 25% for profits exceeding £50,000 or 19% for profits below £50,000 (for most small businesses, marginal relief applies).
4. Complete the CT600 form – This includes financial details, tax calculations, and supporting documents.

Submit to HMRC – You must file online via the Government Gateway or together with your Companies House accounts via compatible accounting software within 9 months of the year-end.