Accounts

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Accounts

All businesses need to prepare Accounts to reflect their results to the “outside world” and taxation authorities,
and this is done by means of their Accounts (sometimes called Financial Statements).

All businesses have to prepare Accounts and file the results with the tax and/or statutory authorities and all such authorities have very clearly defined
(and inflexible) deadlines for submitting the relevant results, backed up by penalties and fines for failing to comply.

Individuals

Individuals put their trading results on a relatively simple schedule or set of schedules, covering a set period (usually a year) to the relevant date (accounting year-end) and then those results flow through onto the self-employment section of the Self-Assessment Tax Return. Individual or sole traders are not obliged to reveal their results or Accounts to anyone else, officially, but when seeking finance or a mortgage, any lender will almost always ask to see Accounts.

Partnership

Individuals put their trading results on a relatively simple schedule or set of schedules, covering a set period (usually a year) to the relevant date (accounting year-end) and then those results flow through onto the self-employment section of the Self-Assessment Tax Return. Individual or sole traders are not obliged to reveal their results or Accounts to anyone else, officially, but when seeking finance or a mortgage, any lender will almost always ask to see Accounts.

Partnerships with Limited Liability status (LLP), do also have to file Accounts at Companies House which means they are available for public inspection.

Companies

Companies need to compile full Accounts, covering a set period (usually a year) to a specific/relevant date (accounting year-end or accounting reference date) and the results are then summarised on Corporation Tax Returns which summarise the performance of the limited company for the relevant accounting period and declare the profits made and tax calculated as due, for the Tax Office to check.

Companies also have to file Accounts at Companies House. These are available for public inspection. Smaller companies (determined by set criteria) can choose to file shortened Accounts (known as Abbreviated Accounts) so that less information is revealed.

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