Annual accounts format — micro-entity, small company, or full accounts
The format of a company's statutory accounts depends on its size, measured by turnover, balance sheet total, and employee count. Most single-property or small portfolio BTL SPVs qualify as micro-entities.
- Micro-entity accounts (FRS 105) — available where two of: turnover ≤ £632,000; balance sheet ≤ £316,000; employees ≤ 10; simplified balance sheet only; P&L not publicly visible (privacy advantage)
- Small company accounts (FRS 102 s.1A) — available where two of: turnover ≤ £10.2m; balance sheet ≤ £5.1m; employees ≤ 50; full accounts but P&L can be abbreviated at Companies House
- All accounts must be signed by a director and include the registration number and date of approval
- Directors' report required for small companies (not micro-entities) — states principal activities and true and fair view confirmation
Companies House filing deadline — 9 months after year-end
A private limited company must file its annual accounts at Companies House within 9 months of its accounting reference date. Separately, every company must file an annual confirmation statement within 14 days of the anniversary of incorporation (£34 online fee).
- First accounts — within 21 months of incorporation OR 3 months from accounting reference date, whichever is later
- Subsequent years — 9 months after accounting reference date (e.g. 31 March year-end → file by 31 December)
- Late filing penalties — £150 (up to 1 month), £375 (1-3 months), £750 (3-6 months), £1,500 (over 6 months); doubled for two consecutive late filings
- Persistent failure to file can lead to Companies House striking off the company (administrative dissolution)
Corporation Tax return (CT600) and payment deadlines
The CT600 is filed with HMRC (not Companies House) and is separate from the statutory accounts. Corporation Tax payment falls due 9 months and 1 day after year-end — before the CT600 must be filed.
- CT600 filing deadline — 12 months after the end of the accounting period
- Corporation Tax payment deadline — 9 months and 1 day after year-end (e.g. 31 March 2025 year-end → CT payment due 1 January 2026)
- Large companies (profits over £1.5m) must pay by quarterly instalment payments during the accounting period
- CT600 discloses: taxable total profits; allowable deductions (mortgage interest, management fees, repairs, insurance, EICR/gas safety costs); losses brought forward; Corporation Tax rate applied
Extracting profits — salary, dividends, and director's loan account
A BTL company's profits belong to the company until extracted. The main routes are salary (deductible for Corporation Tax), dividends (from post-tax retained earnings), and repayment of director's loan account balances.
- Salary — deductible from taxable profits; most directors take salary up to NI threshold (£12,570 for 2025/26) to avoid NI while remaining CT-deductible
- Dividends — paid from post-tax retained profits; taxed at 8.75% (basic), 33.75% (higher), 39.35% (additional) after £500 dividend allowance (2025/26); NOT deductible for CT
- Director's loan account — repayment of amounts lent by the director to the company is tax-free; loans from company to director trigger s.455 CTA 2010 charge (25%) if not repaid within 9 months of year-end
- Retained profits — many BTL companies retain profits for future deposits; on a share sale, gain is subject to CT at company level; shareholders may qualify for Business Asset Disposal Relief (BADR)