As a Sole Trader, Partnership or a Director of Limited Company you must keep appropriate books of prime entry to record the Revenue, Expenses the Assets of the company and its Liabilities.
Preparing and filing annual accounts is required by law, both by HMRC & Companies House in the UK. In Dubai these are required the assist the computation of your VAT and Corporation Tax Liabilities.
The format of these accounts is dependent on many factors, such as turnover, assets employed and other regulatory matters.
All private limited and public companies must file their accounts at Companies House. You must send Companies House a copy of the accounts you have already prepared for your members or shareholders.
A small company can prepare and submit accounts according to special provisions in the Companies Act 2006 and the relevant regulations. This means they can choose to disclose less information than medium and large companies.
Qualifying as a small company
For accounting periods that begin on or after 6 April 2025
A small company must meet at least 2 of the following conditions:
For accounting periods beginning between 1 January 2016 and 5 April 2025
A small company must have met at least 2 of the following conditions:
You cannot prepare and submit small company accounts if the company is, or was at any time during the financial year:
For queries about financial services companies which are excluded from the small companies’ regime, we take guidance from Financial Conduct Authority.
Generally, a company qualifies as small in its first financial year if it meets the conditions in that year. In any following years, a company must meet the conditions in that year and the year before. If a company qualified as small in one year but no longer meets the criteria in the next year – it may continue to claim the exemptions available in the next year. If that company, then reverts to being small (by meeting the conditions in the following year) the exemption will continue uninterrupted.
Generally, a group qualifies as small in its first financial year if it meets the conditions in that year. In any following years, a group must meet the conditions in that year and the year before.
If a group qualified as small in one year but no longer meets the criteria in the next year – it may continue to claim the exemptions available in the next year. If that group, then reverts to being small (by meeting the conditions in the following year) the exemption will continue uninterrupted. For accounting periods that begin on or after 6 April 2025.
A group of companies must have met at least 2 of the following conditions to qualify as small:
Small company accounts prepared for members usually include:
Generally, a group qualifies as small in its first financial year if it meets the conditions in that year. In any following years, a group must meet the conditions in that year and the year before.
If a group qualified as small in one year but no longer meets the criteria in the next year – it may continue to claim the exemptions available in the next year. If that group, then reverts to being small (by meeting the conditions in the following year) the exemption will continue uninterrupted.
A group of companies must meet at least 2 of the following conditions to qualify as small:
A group of companies must have met at least 2 of the following conditions to qualify as small:
Small company accounts prepared for members usually include:
Some companies do not need to have an audit. To qualify for audit exemption, a company must qualify as small during the financial year.
If a company qualifies as a micro-entity, it also qualifies as a small company. This means it can also qualify for audit exemption.
For accounting periods that begin on or after 6 April 2025, a company must meet at least 2 of the following:
Some companies do not need to have an audit. To qualify for audit exemption, a company must qualify as small during the financial year.
If a company qualifies as a micro-entity, it also qualifies as a small company. This means it can also qualify for audit exemption.
For accounting periods that begin on or after 6 April 2025, a company must meet at least 2 of the following:
The previous criteria apply, if your accounting period starts before 6 April 2025. See qualifying as a small company above. Some companies must have an audit and cannot take advantage of audit exemption. Even if a small company meets the criteria, it must still have its accounts audited if demanded by:
The demand for the audit of the accounts should be in the form of a notice to the company, deposited at the registered office at least one month before the end of the financial year in question. The notice may not be given before the financial year to which it relates.
If a small company qualifies for audit exemption, it can submit unaudited accounts to Companies House.
In either case, the balance sheet must contain wording to the effect of the following statements above the director’s printed name and signature:
For the year ending (dd/mm/yyyy) the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
However small companies and micro-entities can prepare an abridged version of those accounts which has less detail, by omitting certain balance sheet items.
If your company qualifies as dormant, you can deliver even simpler annual accounts to Companies House.
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