Business accounts: the ones you have to file
Business accounts, in the sense HMRC and Companies House mean, are the annual accounts every limited company must file: due nine months after the financial year end, or 21 months after incorporation for the first set. Miss the date and the penalty is automatic, and the scale doubled on 1 April 2026: £150 for up to a month late, rising to £1,500 past six months, doubling again if it happens two years running. Here is the whole timetable on one page, what changed in the size thresholds, and when you can safely do it yourself.
| Filing | Goes to | Deadline | If you miss it |
|---|---|---|---|
| First annual accounts | Companies House | 21 months after incorporation | Automatic penalty, £150 to £1,500 |
| Annual accounts (after that) | Companies House | 9 months after year end | Same scale, doubles on a repeat year |
| Confirmation statement | Companies House | Yearly, £50 fee | Company can be struck off |
| Corporation Tax payment | HMRC | 9 months + 1 day after period end | Interest from day one |
| CT600 tax return | HMRC | 12 months after period end | £100 rising with delay |
The 2026 penalty scale, plainly
Companies House doubled late filing penalties on 1 April 2026, the first rise since 1998. For a private company: up to one month late costs £150, one to three months £375, three to six months £750, and beyond six months £1,500. There is no warning letter and no discretion in the issuing; the penalty generates itself the day after the deadline. File late two financial years in a row and every figure doubles. Public companies sit on a higher scale again. The cheapest insurance against all of it is a calendar entry the day you incorporate.
Micro or small: the thresholds moved in your favour
For financial years starting on or after 6 April 2025, a company is a micro-entity if it meets two of three tests: turnover up to £1 million, balance sheet total up to £500,000, and no more than 10 employees. The small company tests rose to £15 million turnover, £7.5 million balance sheet and 50 employees. The rise pushed roughly 113,000 companies down into the micro category, and micro matters because the accounts shrink to a minimal balance sheet with no directors' report, which is the difference between an afternoon with good software and a four-figure accountancy bill.
Sole traders: no Companies House, different clock
A sole trader files nothing at Companies House. Your reporting is Self Assessment by 31 January online, and since April 2026, Making Tax Digital quarterly updates if qualifying income passes £50,000, with the £30,000 band joining in April 2027. The record-keeping burden is real either way, which is why the sole trader account guide weights bookkeeping features so heavily.
Do it yourself, use software, or pay someone
- Micro-entity, simple trade: MTD-ready software prepares and files the accounts from your bookkeeping. The software comparison starts at £0, via the free FreeAgent that comes with a Mettle account.
- Small company, VAT, stock or staff: software for the year, an accountant for the year end. You keep the books clean; they extract the tax savings and sign off the filings.
- Anything with investors, R&D claims or group structure: accountant, full stop. The fee buys judgement, not data entry.
Questions people actually ask
What are business accounts?
In the filing sense, the annual accounts a limited company must prepare and send to Companies House every year: a balance sheet, and depending on company size a profit and loss account and notes. Sole traders do not file accounts at Companies House; they report through Self Assessment instead.
When are company accounts due?
Nine months after your financial year end, every year. Your first accounts run on a longer clock: 21 months from the date of incorporation. Corporation Tax follows its own timetable: payment nine months and one day after the period end, the CT600 return twelve months after.
What happens if I file accounts late?
An automatic penalty lands the day after the deadline, no warning letter first. Since 1 April 2026 the private company scale is £150 up to one month late, £375 up to three months, £750 up to six, £1,500 beyond that, and the whole scale doubles if you are late two years running.
Can I file my own company accounts?
A micro-entity usually can: the balance sheet format is minimal and MTD-ready software prepares it from your bookkeeping. Once you carry stock, staff or investors, an accountant typically saves more in tax and error than the £60 to £150 a month they cost.
What counts as a micro-entity in 2026?
Two of three tests, for financial years starting on or after 6 April 2025: turnover no more than £1 million, balance sheet total no more than £500,000, and 10 or fewer employees. Micro-entities file the simplest possible accounts. The small company thresholds are £15 million turnover, £7.5 million balance sheet and 50 employees.
Figures checked 4 July 2026; confirm details with the provider before applying. We may earn a commission through links on this page.