Bookkeeping Requirements for Companies and LLPs in the UK

The easiest way to start a new company formation

#1. Summary
#2. Bookkeeping Requirements for Companies and LLPs in the UK
#3. Are the UK's Bookkeeping Requirements the Same for Overseas Customers?
#4. Annual Accounts Preparation Service for Limited Companies & LLPs
#5. Bookkeeping Services for Private Companies and LLPs
#6. VAT Return Preparation for Companies and LLPs
#7. Self-Assessment Preparation for Company Directors and LLP Members
#8. Keeping Your Financial and VAT Records at the Registered Office Address

The cheapest way to start a new company registration

#9. Tax and VAT Expert Service for Limited Companies and LLPs
#10. We Will Do Your Bookkeeping & Prepare Annual Tax Return
#11. Company Set-Up with Confirmation Statement & Dormant Annual Accounts
#12. Private Company Registration With Preparation of Annual Accounts
#13. Company Formation With Basic Bookkeeping & Year-End Accounts
#14. Complete Company Incorporation with VAT, Bookkeeping & Tax Return

Bookkeeping requirements for companies and LLPs incorporated in the UK

HM Revenue and Customs (HMRC) requires all companies and limited liability partnerships (LLPs) to keep records about the business and its financial transactions for taxation purposes. These records must be kept for a minimum of six years from the end of the last financial year and detail directors, company secretaries and shareholders as well as loan repayment promises, mortgages, assets and financial transactions (income, outgoings etc.). For LLPs, they must also set out the way in which members' capital is accounted for.

A failure to keep proper accounting records can result in the company being fined up to £3,000 and/or company directors being disqualified. If the records are lost, stolen or accidentally destroyed, the company is obligated to inform the tax office and restore the documentation to the best of its ability.

Companies House must be informed if the business changes its registered office address, directors' details or company secretary. A copy of the firm's annual return must also be submitted to Companies House within 28 days of the business's incorporation anniversary. This can be done online or using a paper ARO1 form, with both methods carrying fees. Failure to comply with this requirement is viewed as severe by HMRC and can result in director disqualification, personal prosecution and even company closure.

As you can probably see, bookkeeping can be a complex business and the penalties for getting it wrong can potentially put the entire company at risk. For those reasons, it pays to employ an accountancy firm that is experienced in the necessary procedures and can ensure that your records are clear, concise and correctly filed.

At Coddan, we can take the hassle out of accounting by looking after your company's paperwork so you can concentrate fully on expanding your business. Our team can prepare your annual accounts for both Companies House and tax purposes as well as provide you with regular management accounts so you gain a full overview of performance.

Running a business requires a lot of time being spent on paperwork, but we can help you minimise that burden by sending you completed documents and accounts which only need checking over and signing.

Even if you are confident in your own accounting abilities, we can provide you with guidance on how to correctly set up your books. We also provide a reasonably priced payroll service.