What Year-End Accounts for a UK Limited Company Contain
Every UK limited company must prepare and file statutory accounts each year. The required content depends on the company's size, but for most SMEs working with an Indian CA firm, the statutory accounts pack contains:
- Profit and Loss account — showing revenue, cost of sales, gross profit, administrative expenses, and net profit or loss for the year, with prior-year comparatives
- Balance Sheet — signed by a director, showing fixed assets, current assets (debtors, stock, cash), creditors, long-term liabilities, and net assets / shareholders' equity at year-end
- Notes to the accounts — explaining accounting policies, fixed asset movements, creditor analysis, director loans, related party transactions, and any other required disclosures
- Directors' report — a brief narrative covering the company's principal activities, a fair review of the year, and any required disclosures (e.g. dividends paid)
- iXBRL tagging — all accounts filed with HMRC electronically must be iXBRL-tagged. The Indian CA team prepares these in the correct format for online submission
- Corporation Tax return (CT600) — the tax computation and statutory return, filed at HMRC alongside (or shortly after) the accounts
Note: Micro-entity accounts filed at Companies House under FRS 105 contain only a simplified Balance Sheet and minimal notes — the Profit and Loss is not filed at Companies House (though it must still be prepared for the CT600). The director still signs the Balance Sheet.
FRS 102 vs FRS 105 — Which Accounting Standard Applies to Your Company
The accounting standard applied determines how detailed the accounts need to be. For most UK SMEs, the choice is between FRS 102 (small companies regime) and FRS 105 (micro-entity regime). A third option, full FRS 102, applies to medium and large companies but is rarely relevant to businesses outsourcing bookkeeping.
| Standard | Who It Applies To | What Qualifies | Key Difference |
|---|---|---|---|
| FRS 105 (micro-entity) | Micro-entities | Must meet at least 2 of: turnover ≤ £632,000 · Balance Sheet ≤ £316,000 · employees ≤ 10 | Simplified Balance Sheet only filed at Companies House. No P&L filed publicly. Minimal disclosure requirements. |
| FRS 102 Section 1A (small) | Small companies | Must meet at least 2 of: turnover ≤ £10.2m · Balance Sheet ≤ £5.1m · employees ≤ 50 | Full P&L and Balance Sheet prepared. Many disclosure exemptions vs full FRS 102. P&L does not have to be filed at Companies House (abbreviated accounts option). |
| Full FRS 102 | Medium and large companies | Exceeds small company thresholds | Full disclosure requirements. Independent examination or audit may be required. Less commonly outsourced to India. |
The Indian CA team determines which standard applies based on the company's figures and prepares the accounts accordingly. For most businesses approaching Sharma Jyoti and Co, FRS 105 or FRS 102 Section 1A is the appropriate standard — both of which the team handles as standard.
UK Filing Deadlines — Companies House and HMRC
UK limited companies have two separate filing obligations with two separate deadlines. Missing either triggers penalties:
| Filing | Where | Deadline | Late Penalty (first offence) |
|---|---|---|---|
| Statutory accounts (first set) | Companies House | 21 months from incorporation date | £150 (up to 1 month late) → £375 (1–3 months) → £750 (3–6 months) → £1,500 (6+ months) |
| Statutory accounts (subsequent years) | Companies House | 9 months after accounting period end | Same scale as above. Penalties double for a second consecutive late filing. |
| Corporation Tax payment | HMRC | 9 months and 1 day after accounting period end | Interest on unpaid tax from the due date |
| Corporation Tax return (CT600) | HMRC | 12 months after accounting period end | £100 automatic penalty (up to 3 months late) → £200 (3+ months) → tax-geared penalties after 6 months |
What the Indian CA Team Needs to Start the Year-End Process
The year-end process starts efficiently when the right information is provided promptly. For a business where the Indian CA team has handled the bookkeeping throughout the year, most of this information is already available. For a new client bringing year-end work only, the team will request:
- Bank statements for the full accounting year (or Xero/QuickBooks access confirming year-end reconciled balance)
- A list of outstanding sales invoices at year-end (debtors) and unpaid purchase invoices (creditors)
- Details of any fixed asset purchases or disposals during the year — cost, purchase date, and whether VAT was reclaimed
- Outstanding loan or finance agreement balances at year-end (hire purchase, director loans, bank loans)
- Payroll year totals — gross wages paid, PAYE and NI deducted, and employer NI — from your payroll provider or HMRC PAYE records
- VAT return summaries for the year (or confirmation of VAT scheme used)
- Details of any dividends paid to directors or shareholders, with dates and amounts
- The prior year's signed statutory accounts, for comparatives and to confirm brought-forward balances
- Any other unusual items — legal settlements, grants received, government support payments, significant prepayments
The Indian CA team raises a structured query list once the initial information is reviewed. For a well-maintained set of books, the query list is short. For businesses catching up on bookkeeping, more queries are expected — which is normal and not a problem, it just extends the timeline.
How Your Bookkeeping Quality Affects the Year-End Cost and Timeline
The single biggest factor in year-end cost is the state of the bookkeeping records at year-end. Indian CA firms price year-end work partly based on how much cleanup is needed before the accounts can be prepared:
| Bookkeeping State at Year-End | Additional Work Required | Impact on Cost and Timeline |
|---|---|---|
| Monthly bookkeeping done by same Indian CA team throughout the year | Minimal — only year-end adjustments (accruals, depreciation, CT provision) | Fastest timeline (4–6 weeks). Lowest cost — year-end fee is a small additional charge on top of the monthly retainer. |
| Bookkeeping done monthly by client or another provider, records clean | Review and reconciliation of trial balance, year-end adjustments | 6–8 weeks. Standard year-end fee applies (£300–£800 depending on complexity). |
| Bookkeeping partially done — some months missing or unreconciled | Catch-up bookkeeping required before year-end accounts can start | 8–12 weeks. Catch-up bookkeeping charged separately (typically £50–£150/month unreconciled). Year-end fee on top. |
| No bookkeeping done — starting from scratch at year-end | Full year's bookkeeping from source documents (bank statements, invoices) | 12–16+ weeks. Full-year bookkeeping charged at £500–£1,500+ before year-end fee. Not recommended — very expensive and avoidable. |
The most cost-effective approach is to maintain monthly bookkeeping with the same Indian CA firm throughout the year. Year-end then becomes a straightforward process — the accounts are largely prepared from the already-reconciled monthly records, with only year-end adjustments needed. Our outsourced bookkeeping service is structured to make year-end as simple and low-cost as possible.
Cost Comparison — Indian CA Firm vs UK Accountancy Practice
Year-end accounts preparation is where the cost difference between an Indian CA firm and a UK accountancy practice is most visible. UK practices charge on the basis of partner and staff time at UK rates; Indian CA firms charge for the same qualified work at Indian rates:
| Provider | Typical Annual Fee (simple limited company) | Typical Annual Fee (£1–2m turnover) | What Is Included |
|---|---|---|---|
| UK high street accountancy practice | £1,200–£2,000 | £2,500–£4,000+ | Statutory accounts, CT600, Companies House filing, HMRC filing |
| UK online accountant (e.g. Crunch, Tide Accounting) | £600–£1,500/year subscription | Not typically served | Accounts and CT600 included in subscription. Limited advisory. |
| Indian CA firm (accounts and CT600 only) | £300–£500 | £600–£1,000 | Statutory accounts, CT600, iXBRL tagging, Companies House filing, HMRC filing |
| Indian CA firm (monthly bookkeeping + year-end) | £150–£250/month retainer covers both | £250–£500/month | Monthly bookkeeping, management accounts summary, statutory accounts, CT600, all filings |
For a typical UK limited company with clean bookkeeping records, the saving by switching year-end accounts preparation to an Indian CA firm is £700–£2,000 per year. For a business that also moves its monthly bookkeeping across, the total annual saving is usually £3,000–£8,000 compared to a UK practice handling both. Our UK services page covers the full scope of what we provide for UK businesses, and our tax preparation service covers the Corporation Tax computation and CT600 filing.
Written by Sharma Jyoti, CA (ICAI) — Founder, Sharma Jyoti and Co. We are an ICAI-registered Chartered Accountant firm providing outsourced bookkeeping and accounting services to Australian, US, UK and Canadian businesses. Our team includes Xero Advisor Certified professionals (Certificate #17207818). Learn more about our firm →
Bookkeeping for UK Limited Companies — Outsourcing to India
Read → Management AccountsOutsourcing Monthly Management Accounts to India
Read → HMRC ComplianceUK HMRC Compliance When Using an Indian Bookkeeper
Read → PricingHow Much Does It Cost to Hire an Indian Bookkeeper from the UK?
Read →Frequently Asked Questions
Yes. An Indian CA firm can prepare statutory year-end accounts for UK limited companies and LLPs under FRS 102 or FRS 105 (micro-entity regime). This includes the full set of statutory accounts — Profit and Loss, Balance Sheet, notes to the accounts, directors' report — plus the Corporation Tax return (CT600) and iXBRL-tagged filing. The accounts are filed at Companies House and the CT600 at HMRC in the same way as a UK accountant would do it.
UK limited companies have two separate deadlines: Companies House requires the statutory accounts to be filed within 9 months of the accounting period end (or 21 months from incorporation for the first accounts). HMRC requires the Corporation Tax return (CT600) to be filed within 12 months of the accounting period end. Corporation Tax itself is due 9 months and 1 day after the accounting period end — before the CT600 filing deadline. Missing the Companies House deadline triggers automatic late filing penalties starting at £150.
FRS 105 is the micro-entity regime, available to companies meeting at least two of: turnover under £632,000, balance sheet under £316,000, or no more than 10 employees. Micro-entity accounts contain only a Balance Sheet with limited notes — no Profit and Loss needs to be filed at Companies House (though one must be prepared for HMRC). FRS 102 applies to all other small companies. FRS 102 small companies benefit from many disclosure exemptions compared to full FRS 102.
For a business where the bookkeeping has been maintained throughout the year by the same Indian CA team, year-end accounts are typically ready within 4–6 weeks of the accounting period end, once all year-end information is provided. Where bookkeeping has not been kept current, a catch-up period is needed first — typically 4–8 weeks depending on the volume of transactions. Starting the year-end process early avoids penalty risk from filing late at Companies House.
To prepare year-end accounts the Indian CA team needs: bank statements for the full year (or confirmed year-end bank balance), a list of any year-end creditors and debtors not yet recorded, details of any fixed asset purchases, disposals, or loans entered during the year, payroll totals for the year (from your payroll provider or RTI submissions), VAT return summaries, any dividends paid to directors or shareholders during the year, and the previous year's signed accounts for comparatives. The Indian CA will raise queries for anything unclear.