United Kingdom | UK Accounting Services - UK Bookkeeping Services

Overview - UK Corporate Tax Rate

The United Kingdom is ranked 1st in 2017 on the Forbes Best Countries for Business thanks to its low corporation tax and the ease to grow businesses outside the UK/ EU.

The current tax rate for all company profits except for ring fence profits is 19% in the year of 2018/19. The government has intended to cut UK Corporation Tax to 17% from the tax year starting in April 2020. The UK has been recognised as a lighter compliance burden than most other jurisdictions. The UK performs well on post-filing interactions with tax authorities, specifically securing a VAT refund and correcting an error in a corporation tax return. In many other countries, this would be more time consuming and costly.

Offshore Company Corp and our industry specialists are here to help you get your goal easily for your UK company and save huge cost instead of hiring full-time accounting staff in the UK. All you need to do is concentrate on your business success and let us be your supervisors at:

• Preparing a set of Financial statement by our specialist that have ACCA (Association of Chartered Certified Accountants) Certificate.
• Completion of abbreviated accounts/ unfilled accounts/ full set accounts and filing the accounts to the Companies House
• Making sure you have the accurate, minimise the tax liability and up-to-date company accounts complying with HMRC requirements.
• Commit to delivering the best quality of audit reports with the deep knowledge of your core business.
• Supporting registration VAT number.

Process

After the end of one financial year, companies must prepare in general

• full (‘statutory’) annual accounts
• a Company Tax Return

Based on your business records, we help you in the proceeding.

1. UK Bookkeeping services:

Bookkeeping is the ongoing recording of the financial transactions conducted by a business or other organisation. This includes purchases and sales and all forms of expenditure and income.

Various tasks such as dealing with invoices, recording expenses, monitoring outgoings and paying employees, which can be very time-consuming.

It takes time to get this right but if done correctly your business will be in a great position.

In England and Wales, bookkeeping is a legal requirement for all forms of businesses, including Limited companies, Partnerships & Sole traders. Different rules apply depending on the size of the business such as Standards FRS 102 sets the rules of larger businesses while FRS 105 applies to “ Micro Entities”.

Our accounting software allows controlling your day-to-day sales, purchasing and stock issues, as well as handling your own banking affairs. Therefore, it is more accurate and easier for the year-end account.

2. UK Annual Accounts:

Statutory accounts – also known as annual accounts – are a set of financial reports prepared at the end of each financial year. In the UK, all private limited companies are required to prepare statutory accounts. When preparing statutory accounts, you must make sure that your accounts meet either the IFRS Standards or the New UK GAAP.

For all limited companies, annual accounts must include:

• A balance sheet – a financial statement which shows how much the company owns, owes or is owed at the end of the financial year. This must be signed by a director and include a director’s name.
• A profit and loss statement – also known as a profit and loss account or a P&L account, this shows the business’s net profit or loss.

Notes about the accounts.

Depending on the size of your company, you can also need to include:

• A directors' report
• An auditor’s report

A simple process for a company

1. Collect your business records
2. Do bookkeeping monthly, quarterly or yearly for your requests (it is up to transactions and the volume of your business)
3. Prepare End Year account
4. Prepare a statutory account which is met UK legislation (completion of abbreviated accounts/ unfillet accounts/ full set accounts )
5. File the account to Companies House
6. Prepare Tax computation and Notes
7. Submit Company Tax Return/ Partnership Tax return to HMRC

Fee

Accounting fee

Company Law in the UK requires that directors of companies incorporated in the UK “prepare accounts for the company for each of its financial years”, which give a “true and fair view”.

Amount (Transactions)	Fee
Below 30	US$ 865
30 to 59	US$ 936
60 to 99	US$ 982
100 to 119	US$ 1,027
120 to 199	US$ 1,092
200 to 249	US$ 1,261
250 to 349	US$ 1,456
350 to 449	US$ 1,963
450 and above	To be confirmed

Filing of accounts and UK Company Tax Return fee

As a limited company director, you will have certain responsibilities, you are required to file various forms and returns to both Companies House and HMRC.

Turnover (GBP)	Fee
Dormant	US$ 499
Below 30,000	US$ 1,386
30,000 to 74,999	US$ 3,110
75,000 to 99,999	US$ 3,432
100,000 to 149,999	US$ 4,979
150,000 to 249,999	US$ 6,695
250,000 to 300,000	US$ 8,925
Above 300,000	To be confirmed

Penalties

If you miss a filing or payment deadline set by Her Majesty’s Revenue & Customs (HMRC) or Companies House, you’ll face immediate penalties and fines which escalate over time.

1. Penalties for late Account filing

Time after the deadline	Penalty (for private limited companies)
Up to 1 month	£150
1 to 3 months	£375
3 to 6 months	£750
More than 6 months	£1,500

You’ll have to pay penalties if you don’t file your accounts with Companies House by the deadline.

Note: The penalty is doubled if your accounts are late 2 years in a row.

2. Penalties for late UK Company Tax Return filing

You’ll have to pay penalties if you do not file your Company Tax Return by the deadline.

Time after your deadline	Penalty
1 day	£100
3 months	Another £100
6 months	HM Revenue and Customs (HMRC) will estimate your Corporation Tax bill and add a penalty of 10% the unpaid tax
12 months	Another 10% of any unpaid tax

Note: If your tax return is late 3 times in a row, the £100 penalties are increased to £500 each.

3. Others

Late payment Company Tax Return: Interest is charged on outstanding tax due.

Record keeping: a company which fails to keep adequate records in relation to an accounting period is liable to a penalty of up to £3,000.

Auditing Services

A company may qualify for an audit exemption if it has at least 2 of the following:

• An annual turnover of no more than £10.2 million
• Assets worth no more than £5.1 million
• 50 or fewer employees on average