Running a Limited Liability Partnership (LLP) comes with its perks like flexibility, shared responsibilities and limited liability for partners. But let’s be real. It also means staying on top of your financial filings. If you’ve been putting off filing your LLP accounts, now’s the time to get it sorted. Missing deadlines or making errors can incite penalties, and nobody wants that.
Let’s break down what you need to know to file LLP accounts correctly.
Why Filing LLP Accounts Matters
Why is this even necessary? LLPs, unlike sole traders, must file annual accounts with Companies House. This keeps your business compliant with UK regulations. Skipping this step isn’t an option unless you fancy fines or even being struck off the register.
Key Deadlines to Keep in Mind
Timing is everything. Your LLP must file its first accounts within 21 months of incorporation. After that, the usual deadline is 9 months after your accounting reference date (the end of your financial year).
Set reminders well in advance. Last-minute rushes risk mistakes, and Companies House won’t accept “I forgot” as an excuse.
What You Need to File
Filing LLP accounts isn’t just about submitting a random spreadsheet. Here’s what’s required:
- Annual accounts– These are a balance sheet, profit & loss statement and notes about accounting policies.
- Confirmation statement – Though not part of the accounts, this confirms your LLP’s details are up to date.
- Tax return– You’ll also need to send accounts to HMRC as part of your Self Assessment or Corporation Tax return.
Small LLPs (with turnover under £10.2 million, assets under £5.1 million and fewer than 50 employees) can file abridged accounts, which means less detail is made public. If your LLP is larger, you’ll need to submit full accounts.
How to File LLP Accounts
Now the fun part is actually getting it done. You’ve got three main options:
- Do It Yourself – If you’re confident with numbers, you can file online via Companies House. Their website has templates to help.
- Use Accounting Software – Tools like Xero, QuickBooks or FreeAgent can generate compliant accounts and even submit them automatically.
- Hire an Accountant– If numbers aren’t your thing, an accountant will handle everything (worth the peace of mind for many).
Whichever route you take, double-check everything before hitting submit. Typos in figures or missed signatures can cause delays.
Common Mistakes to Avoid
Even seasoned business owners slip up sometimes. Here’s what trips people up most:
- Missing the deadline– Penalties start at £150 and go up the later you are.
- Incorrect figures– Transposed numbers or outdated records lead to rejected filings.
- Not signing the documents – Yes, unsigned accounts get bounced back.
- Forgetting HMRC – Companies House and HMRC need separate submissions.
What Happens If You Don’t File?
Ignoring your filing duties isn’t a good look. Late filings rack up fines, and if you’re more than 6 months late, your LLP could be forcibly dissolved. And directors may face disqualification.
Conclusion
Filing LLP accounts might not be the most thrilling part of running a business, but it’s non-negotiable. If in doubt, get professional help. A little effort now saves a lot of headaches later.
If you’ve been dragging your feet, today’s the day to sort it out.
