Company accounts sit at the heart of good governance, investor confidence and HMRC compliance. They also drive strategic decisions: reliable numbers tell you whether to reinvest, cut costs or raise finance. Yet every year thousands of directors still miss the filing dates or misstate figures, exposing their companies to fines or worse. In the 2023/24 year alone Companies House imposed £34.4m in late-filing penalties, with the maximum £3,000 charge levied on more than 11,000 companies.
Against that backdrop, the 2025/26 tax year brings tougher enforcement powers for both Companies House and HMRC, plus continuing pressure on cash-generating businesses as the 25% main rate of corporation tax beds in. Thomas Barrie & Co has guided Scottish and UK companies through these shifts for over 50 years. In this article, we outline the current obligations, highlight the pitfalls we see most often and set out practical steps to keep your company accounts on point. Whether you already work with us or are looking for a new adviser, you’ll leave with a clear roadmap – and the reassurance that staying compliant does not need to be complex or time-consuming.
Key deadlines and filing windows
Missing a statutory date is still the fastest route to a penalty. Keep the following core deadlines front of mind.
- Accounts to Companies House – nine months after the end of your accounting period (six months for public limited companies).
- Corporation tax payment – nine months and one day after period end.
- Corporation tax return (CT600) – 12 months after period end.
- Confirmation statement – every 12 months, on the anniversary of incorporation or previous statement.
Compliance rates are high – 98.5% of UK companies were up to date with their accounts at March 2023 – but with the Economic Crime and Corporate Transparency Act 2023 now in force, the margin for error is shrinking. The Act gives the registrar the power to query filings in real time and levy financial penalties of up to £10,000 for inaccurate or misleading information.
Recent changes for 2025/26
Corporation tax rates and reliefs
The main rate remains 25%, with the small-profits rate continuing at 19% for companies with taxable profits up to £50,000 and marginal relief tapering to £250,000. If your group structure includes several companies, remember the limits are split between associated entities.
Full expensing on qualifying plant and machinery is confirmed until 31 March 2031, offering a 100% deduction in the year of purchase. Capital allowances therefore play a bigger role in cashflow planning – make sure assets are categorised correctly from day one.
Companies House reforms
Identity verification for all directors and people with significant control is due to become mandatory later in 2025. Digital tagging (iXBRL) of audited financial statements will also expand to more company sizes, reducing the scope for manual adjustments. Early adoption not only avoids a last-minute scramble but also demonstrates strong governance to lenders and investors.
Company accounts: Avoiding common pitfalls
Directors rarely set out to file late or underpay tax; most problems arise from process gaps. The issues we fix most often are the following.
- Cut-off errors: Sales recognised after the year end or invoices dated incorrectly.
- Unreconciled control accounts: Bank, VAT and intercompany balances left uncleared.
- Deferred tax blind spots: Particularly where research-and-development (R&D) expenditure or capital allowances distort the effective rate.
- Dormant subsidiaries: Forgotten entities that still need nil accounts.
- Related-party disclosures: Loans to directors or guarantees omitted from the notes.
Digital records and software – getting it right first time
Making Tax Digital for corporation tax has been pushed back to 2027, yet smart businesses already keep real-time ledgers. Cloud software links directly to HMRC and Companies House gateways, produces iXBRL files automatically and gives directors a live cashflow dashboard. We recommend choosing a platform that:
- integrates with your bank feed and payroll
- allows multi-factor authentication for user access
- supports group consolidations or at least seamless export to Excel or CSV.
Our team can advise on the best fit and manage the migration with minimal disruption.
Dealing with HMRC – records, reliefs and inquiries
HMRC collected £97.7bn in corporation tax during 2024/25, up 3.8% on the previous year. With that revenue under pressure, the department has ramped up desk-based inquiries, particularly into:
- hybrid or international groups claiming double tax relief
- R&D tax credit claims where subcontractor costs exceed staff costs
- capital allowance pools following major refurbishments.
Keeping clear audit trails – supplier contracts, time-sheet evidence, asset invoices – is the cheapest insurance against a prolonged inquiry. If you do receive a s.36 notice, act quickly: draft an initial response within 30 days and consider professional representation.
How we can help
Thomas Barrie & Co has supported owner-managed businesses for over half a century. Our services include:
- year-end accounts preparation and iXBRL tagging
- corporation tax optimisation and HMRC inquiry defence
- outsourced finance functions and cloud-software training
- group restructuring and shareholder exit planning.
Next steps – keep your company accounts compliant and future-ready
Filing on time is only the starting point. Robust company accounts give stakeholders confidence, unlock finance and help you spot opportunities well before the competition. They also protect directors personally: late filings can trigger an automatic strike-off, while inaccurate numbers risk disqualification or criminal sanctions under the Companies Act. With new identity-verification rules coming in, scrutiny will grow even sharper.
Our message is simple: invest a little time now to set up solid processes, adopt the right software and seek expert advice early. Doing so turns compliance from a chore into a strategic asset – freeing you to focus on growth while we keep the regulators satisfied. If you’d like personalised guidance, get in touch with us today – we’ll make sure your company accounts stay simple, accurate and fully compliant.