Filing information with Companies House

It's a mandatory requirement for all limited companies to submit their annual accounts and a confirmation statement to Companies House yearly.

This data is subsequently made publicly accessible via the company register.

In this guide, written in collaboration with Companies House, we’ll outline what information you need to file with Companies House, explain how credit reference agencies utilise the information you’ve provided and what the implications are if you fail to provide company information to Companies House on time.

What is Companies House?

Companies House serves as the official registry for all limited companies operating within the UK.

It provides public access to the information on its register, which includes company accounts, making it available to a broad spectrum of users.

This provision allows various stakeholders, including investors, creditors, customers, and others, to verify a company's legal status, ownership, and financial health.

Such a practice fosters transparency and accountability in the business sector.

In addition to offering insights into a company's operations and performance, the financial information held by Companies House supplies invaluable data that can facilitate investment decisions, inform decision-making processes, enable business transactions, and assist in holding company directors accountable.

What information do I need to file with Companies House?

Every company registered with Companies House is required to file annual accounts, which are documents prepared at the end of a financial year.

These accounts reflect the company's performance throughout the accounting period.

All limited companies, regardless of whether they have been profitable, are breaking even, inactive, or dormant, must submit their accounts to Companies House.

Typically, a set of accounts includes:

A profit and loss account

The profit and loss account outlines the company’s sales, operational costs, and the profit or loss generated over the past year.

A balance sheet

The balance sheet provides a snapshot of the value of everything the company owns, owes, and is owed.

Notes

The notes offer supplementary information and assist users of accounting information in understanding the company's current financial state.

A director’s report

The directors’ report provides insights on:

• The financial health of the company
• The company's performance
• The company's potential for expansion and growth
• The company's compliance with financial regulations

Micro-entities, small and dormant companies

You might be able to send simpler (‘abridged’) accounts to Companies House and not need them to be audited.

This depends on whether your company is dormant or qualifies as a small company or ‘micro-entity’.

A company is called ‘dormant’ by Companies House if it’s had no ‘significant’ transactions in the financial year that you’d normally report.

A company is categorised as 'small' if it meets at least two of the following criteria:

• a turnover of less than £10.2 million
• a balance sheet total of less than £5.1 million
• fewer than 50 employees.

Companies with even smaller turnovers are classified as micro-entities.

Your company can file micro-entity accounts if it meets at least two of the following conditions:

• a turnover not exceeding £632,000
• a balance sheet total not exceeding £316,000
• no more than ten employees.

In certain situations, an auditor’s report may be required.

However, small or micro-entities that meet specific criteria can benefit from an audit exemption.

How do I file information with Companies House?

Filing your accounts via software or online can be the most efficient and straightforward method.

There are a variety of software providers which offer a range of accounting packages to prepare and file accounts.

Most types of accounts can be filed using software, depending on the functionality of the software package you’re using.

If using Companies House web services, once you've determined the type of accounts you need to file, you can follow the step-by-step instructions available online or refer to the 'How to' videos on YouTube for visual guidance.

To make use of the online filing service, you'll need to:

• Register for online filing
• Provide a valid email address
• Set a password
• Have the company’s authentication code readily available

The online service incorporates built-in checks to ensure all required information is inputted before you proceed to submission.

Upon receipt of your accounts, you'll receive an automatic email notification, followed by another email confirming whether your accounts have been accepted.

You should only send paper accounts if your company cannot file online or by software.

When should I file my information with Companies House?

Each company has an accounting reference date.

The deadline for filing your accounts is calculated from this date.

For newly formed companies, this date corresponds to the anniversary of the last day in the month the company was incorporated.

For existing companies, the accounting reference date falls on the anniversary of the day after the previous financial year ended.

Unless you are filing your company’s first accounts, the time normally allowed for delivering accounts to Companies House is nine months from the accounting reference date.

If you are filing your first set of accounts, you have 21 months after the date you registered with Companies House.

If you're unsure about when your accounts need to be filed, you can use the 'Find and update company information' service to locate your company.

The due date for your accounts will be displayed on the overview screen.

Registering for the email reminder service can provide timely notifications about when your accounts are due.

It's crucial to plan ahead.

It’s a good idea to familiarise yourself with your company’s deadlines and prepare your accounts well in advance.

What does Companies House do with this information?

Companies House provides public access to the commercial credit information on its register, making it available to a wide range of users.

Commercial credit information is available for purchase by anyone who needs it, often via commercial credit reference agencies (CRAs).

The customers of CRAs often include:

• both large and small businesses
• major banking institutions
• public sector entities
• credit insurers.

These are typically parties interested in gathering information on other businesses to aid their decision-making processes.

Whether it's for extending a credit facility between businesses for goods procurement, granting a loan, or offering credit insurance, it's standard practice for the lending party to seek an independent assessment of the business they're considering.

This usually involves obtaining a commercial credit report from a CRA.

Such a credit report does more than just corroborate the details provided in a credit or loan application form.

It can also be utilised within the credit decision process itself.

It's then up to the lender, in accordance with its own policies and perhaps its own data, to decide whether to extend a credit facility or not - and if so, at what levels and under what terms.

What are Credit reference agencies?

Before extending credit facilities, various lenders - including businesses offering goods on trade credit terms, commercial banks, and loan organisations - need to be assured that the businesses they are lending to will repay the borrowed funds.

To aid their decision-making process, these organisations often consult commercial credit reference agencies.

These agencies maintain records on businesses operating within the UK, typically referred to as 'commercial credit information', which is usually incorporated in a business or credit report.

CRAs compile data from multiple sources to establish a commercial credit information database.

Customers can access this information, most commonly online, through a business or credit report.

The databases curated by CRAs primarily draw from public sources, including:

• Companies House: Provides details for limited and public company accounts, confirmation statements including shareholders and directors’ information, mortgage and charges information.
• Registry Trust: Contains records of High Court Actions and County Court Judgments.
• London, Edinburgh, and Belfast Gazettes: Offers insolvency proceedings and bankruptcy information.

The Business Information Providers Association (BIPA) actively works to safeguard the availability of these public sources.

The data is vital for identifying businesses, enabling CRAs to provide more precise commercial credit information.

In addition to publicly available data, CRAs may also collect information from proprietary sources to enhance their records.

This could include trade payment data and business directory information.

CRAs usually process and analyse this data, providing customers with a simplified summary credit rating or credit score.

These scores denote an individual business's creditworthiness, risk of failure, or risk of payment default, created using proprietary statistical risk assessment models.

Why it’s important to make sure your company’s credit information is accurate

It's crucial for all businesses to not only pay their bills within the agreed-upon timeframe but also to promptly share information regarding their performance with relevant parties.

This includes filing statutory data with Companies House.

Even if it isn't mandatory, we advise submitting comprehensive accounts information.

Every company, including dormant ones, need to prepare accounts.

Timely filing of your accounts is beneficial as it positively impacts your company's credit information and helps you steer clear of penalties associated with late filing.

The best way to ensure that your credit information is accurate, is to file your company data with Companies House on time.

This is important as it forms an integral part of your credit report.

The information you need to file includes:

• Annual accounts
• Confirmation statements
• Any alterations to your company information, directors, or individuals with significant control

Late filing or even requesting an extension can impact the way lenders or potential business partners perceive your company.

The process of preparing and finalising annual accounts can be time-consuming, particularly for larger or more complex companies.

Therefore, it's essential to know what type of accounts you need to file and when they're due.

Proper planning is key.

The extension of credit between businesses plays a vital role in maintaining the economy's health.

According to Companies House, it's estimated that inter-business credit is nearly three times the total amount of bank lending, possibly reaching up to £500 billion annually in the UK.

CRA information is utilised by various businesses to assist and streamline their credit decisions.

The content of this article is informed by the Companies House blog.