It is a criminal offence for every officer of the company if these requirements are not met. In any event, it is generally good business practice to maintain these records. Sometimes these records are maintained by a central function overseas in which case accounts and returns relating to the UK business must be sent to the UK not less than every six months.
UK trading companies are required to file accounts each year with Companies
House and HM Revenue & Customs, as well as a Corporation Tax return. The
specific requirements for these documents, and whether they need to be audited, depends on the size and revenue of the company.
In particular, the accounting records must contain:
- entries from day to day of all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure takes place; and
- a record of the assets and liabilities of the company.
If the company’s business involves dealing in goods, the accounting records must contain:
- statements of stock held by the company at the end of each financial year of the company;
- all statements of stock takings from which you have taken or prepared any statements of stock; and
- statement of all goods sold and purchased, other than by ordinary retail trade. This should list the goods, the buyers and sellers.
(Section 386 Companies Act 2006)
Elemental CoSec’s accountancy and tax support can assist with these services, either providing them in their entirety or in conjunction with the business’ central accounts function.