File Balance Sheet only to Companies House - Micro Entity

[astratek]

Hi,

I'm filing an annual corporation tax return for a micro entity company. Using web filing via the govt gateway.

You get the option to only file the Balance Sheet to Companies House, and forgo 1) the Directors Report and 2) the Profit & Loss. All 3 get sent to HMRC regardless.

If I take the above option, will CH still expect 1) and/or 2) at a later date?

My understanding from the link below is that micro entity companies are exempt, but guidance from companies house website states all must be filed, or face penalties.

https://www.icaew.com/technical/corporate-reporting/uk-gaap/uk-gaap-faqs/micro-entities-filing-options#

The above guidance also states the balance sheet must contain a statement explaining Profit & Loss will not be delivered to CH, but using web filing there does not appear to be any way to add such a statement to the pdf report that's automatically sent out to them.

Many Thanks,

[kbmtraining]

If you are filing an annual Corporation Tax return for a micro-entity using web filing via the Government Gateway, Companies House does not require the Directors' Report or the Profit & Loss (P&L) account to be submitted.

Exemption under FRS 105

Micro-entities follow FRS 105, which simplifies the filing process to just a Balance Sheet with Companies House. The Directors' Report and Profit & Loss account must still be sent to HMRC but do not need to be included in the Companies House submission.

Companies House Expectations and Penalties

Companies House will not request the missing Directors' Report or Profit & Loss account at a later date, as micro-entities are legally exempt from providing them. This legal exemption provides a sense of security. However, if the accounts submitted are incomplete or do not comply with micro-entity rules, Companies House may reject the filing or issue penalties.

Profit & Loss Account Declaration

The Balance Sheet must include a statement confirming that the Profit & Loss account is not being delivered to Companies House, in accordance with Companies Act 2006, section 444. This declaration is crucial for compliance and should not be overlooked.

If you are filing electronically, the system will automatically create this declaration. If the declaration is not showing in the preview of the submission, there might not be an option to include it manually. You may need to use third-party accounting software or paper filing to submit the accounts manually to comply.

A bookkeeping course can be beneficial to business owners and finance professionals, as it can guide them through financial reporting requirements. Individuals seeking flexible learning opportunities might find bookkeeping training online useful, which includes compliance, tax filing, and preparing financial statements.

Next Steps

Before submitting, it's crucial to verify the Balance Sheet to ensure the required declaration has been included. If the declaration is missing, you could be required to explore other ways of making your submission. For further clarity, it is recommended that you ring Companies House or refer to their latest guidance.

If you need information you can visit following website:
https://www.acdap.org/full-course-digital-bookkeeper-payroll-administrator

[astratek]

Thanks for the reply.

>>The Balance Sheet must include a statement confirming that the Profit & Loss account is not being delivered to Companies House, in accordance with Companies Act 2006, section 444. This declaration is crucial for compliance and should not be overlooked.

I've already checked and it doesn't when using web filing. There's no way to edit the auto generated document either. You used to just be able to write them a letter and post it. Then tax went 'digital' to simply it, and it became 10x as complicated, as now I need to find some software that will allow me to edit the document...

I emailed CH but as is typical of them, they've not replied with any meaningful answer, opting instead to inform me of my obligations and the penalties due for non-compliance.

Not to worry. I'll file early and just see if they accept the submission.