Some businesses can avoid being audited and send simpler annual accounts to Companies House. Check out how micro-entities, small and dormant companies may qualify to send abridged accounts.
Companies House can treat your company as 'dormant'. Dormancy means you make no 'significant' transactions in the financial year that you would usually report.
The significant transactions of dormant companies would not include:
If a dormant company qualifies as a 'small' company there would be no need for an audit. You may also want to check if your inactive company is also dormant for Corporation Tax purposes.
Note: A small company, or micro-entity, must still prepare statutory accounts and send them to HM Revenue and Customs as part of the Company Tax Return (and to its members).
Companies House would class a business as a 'small company' if any two (2) of these situations apply:
Being classed as a 'small' company means you would be able to send an abridged set of accounts to Companies House. Abridged accounts contain a much simpler balance sheet (with any extra notes attached).
Even so, the balance sheet must display the name of a director printed on it. One of the directors must also sign the document.
Another advantage of sending abridged accounts is having less company information available to the public. You would also be able to:
Having micro entity status means the business is one of the very small types of companies. Companies House would class a business as a micro-entity if any two (2) of these situations apply:
Some advantages of running micro-entities in the United Kingdom include being able to:
Prepare Annual Accounts | How the preparation of statutory accounts must meet accounting standards.
Penalties for Late Filing | You pay a financial penalty for failing to file annual accounts by the deadline.
Note: The government produces a publication titled 'filing your company's accounts'. It explains the rules and requirements on filing annual accounts for micro-entity, small, medium, or dormant companies registered in the United Kingdom.
Annual Accounts for Dormant and Small Companies in United Kingdom