Limited Company Financial Requirements

• All money received and spent by the company
• Details of assets owned by the company
• Debts the company owes and debts owed to the company
• Stock the company owns at the end of each financial year
• Invoices, receipts, and other financial documents
• Bank statements and correspondence
• Records of shareholders and share transactions
• Details of directors and company secretaries
• Minutes of board meetings and resolutions

Read more about company record keeping requirements on GOV.UK(opens in new tab).

You must keep company records for at least 6 years from the end of the last financial year they relate to. This applies to both physical and digital records. Many companies choose to keep records for longer as a precaution.

If you don't keep records for long enough, you may face penalties or difficulties if HMRC investigates your company's tax affairs.

You can keep your records in paper form, digitally, or a combination of both. Digital records are increasingly popular as they're easier to store, search, and share with your accountant. However, you must ensure digital records are securely backed up and protected.

If you use accounting software, make sure you can export and store your data in a format that will remain accessible for the full 6-year retention period.

You must file your company's annual accounts with Companies House every year. The deadline is 9 months after your company's financial year end. For example, if your year end is 31 March, your accounts must be filed by 31 December.

These accounts must be prepared according to UK accounting standards and include a balance sheet, profit and loss statement, and various notes. Most companies use an accountant to prepare these.

Learn more about filing annual accounts(opens in new tab).

Every company must file a confirmation statement at least once a year. This confirms that the information Companies House holds about your company is correct, including details of directors, shareholders, and the registered office address.

The deadline is 14 days after the anniversary of either your incorporation date or the date of your last confirmation statement.

You must file a Company Tax Return (CT600) with HMRC for each accounting period. The deadline is 12 months after the end of the accounting period. For example, if your accounting period ends on 31 March 2026, your CT600 must be filed by 31 March 2027.

The CT600 includes detailed information about your company's profits, losses, and tax calculation. Most accountants file this electronically on your behalf.

Find out more about Corporation Tax(opens in new tab) and completing a CT600 return(opens in new tab).

Corporation Tax must be paid 9 months and 1 day after the end of your accounting period. This deadline is earlier than the filing deadline for your tax return. For example, if your accounting period ends on 31 March 2026, your Corporation Tax must be paid by 1 January 2027.

Very large companies (profits over £1.5 million) must pay Corporation Tax in quarterly instalments.

All limited companies must prepare statutory accounts in accordance with UK Generally Accepted Accounting Practice (UK GAAP) or International Financial Reporting Standards (IFRS). These accounts must give a "true and fair view" of the company's financial position.

Micro-entities and small companies may be able to use simplified accounting requirements. Your accountant can advise on which category applies to your company.

Corporation Tax rates for the 2026/27 tax year are:

• 19% for profits up to £50,000 (small profits rate)
• 25% for profits over £250,000 (main rate)
• Marginal rate of 26.5% for profits between £50,000 and £250,000

These thresholds are proportionally reduced if you have associated companies or your accounting period is shorter than 12 months.

As a company director, you have legal responsibilities for your company's financial affairs:

• Ensure the company keeps adequate accounting records
• Approve and sign the annual accounts
• Ensure all returns and payments are made on time
• Act in the best interests of the company
• Declare any conflicts of interest
• Not trade while insolvent

Directors who fail to meet their responsibilities can face personal liability, disqualification, or prosecution in serious cases.

Many directors pay themselves through a combination of salary and dividends. Dividends are paid from company profits after Corporation Tax and have different tax treatment than salary:

• Dividends don't attract National Insurance contributions
• Dividends have a £500 tax-free allowance (2026/27)
• Dividend tax rates are 8.75%, 33.75%, and 39.35% depending on your income tax band
• Salaries are deductible against Corporation Tax; dividends are not

The most tax-efficient remuneration strategy depends on your personal circumstances. An accountant can help you optimize this.

You must register for VAT if your company's VAT taxable turnover is more than £90,000 (2026/27 threshold). You can also register voluntarily if your turnover is below this level.

Once registered, you must charge VAT on eligible sales, submit VAT returns (usually quarterly), and comply with Making Tax Digital (MTD) requirements.

Read about VAT registration(opens in new tab) and Making Tax Digital(opens in new tab).

Companies House imposes automatic penalties for late accounts:

• Up to 1 month late: £150
• 1 to 3 months late: £375
• 3 to 6 months late: £750
• Over 6 months late: £1,500

These penalties double for repeat offences within 12 months. Persistent late filing can also lead to the company being struck off the register.

HMRC charges penalties for late Corporation Tax returns:

• 1 day late: £100
• 3 months late: Another £100
• 6 months late: HMRC estimate your tax and add 10% of the unpaid tax
• 12 months late: Another 10% of the unpaid tax (or £3,000 if greater)

Learn more about penalties for late filing and payment(opens in new tab).

If you pay your Corporation Tax late, HMRC charges interest on the outstanding amount from the due date until you pay. The interest rate varies but is typically around 7-8%. Interest is charged daily, so paying even a few days late can be costly.

In serious cases of non-compliance, directors can be disqualified from acting as a company director for up to 15 years. This can happen if you:

• Repeatedly fail to file accounts or returns
• Trade while your company is insolvent
• Fail to pay Corporation Tax or VAT
• Commit fraud or other criminal offences

Director disqualification is a serious matter and can have long-lasting effects on your ability to run a business.

HMRC provides extensive guidance and support for limited companies:

• Corporation Tax overview(opens in new tab)
• Running a limited company(opens in new tab)
• Annual accounts guidance(opens in new tab)
• HMRC helpline: 0300 200 3410 (Corporation Tax enquiries)