Limited Company Accounts and Corporation Tax

Running a limited company in the construction industry brings with it a range of legal and financial responsibilities. From preparing accurate annual accounts to calculating corporation tax, compliance with HMRC and Companies House is non-negotiable.

At Crown Accountants, we specialise in supporting contractors, subcontractors, and builders with their company accounts and corporation tax returns, ensuring everything is handled correctly and on time.

What are limited company accounts?

Every limited company in the UK must prepare annual accounts. These are a formal record of your company’s financial activity and performance over the year. They typically include:

  • A balance sheet – showing what your company owns and owes at year-end.

  • A profit and loss account – showing income, costs, and expenses.

  • Notes to the accounts, giving further detail.

  • A director’s report (for some companies).

Annual accounts are filed with Companies House and used by HMRC to assess your corporation tax. They also provide transparency for shareholders, lenders, and suppliers.

Corporation tax explained

Corporation tax is charged on the profits made by UK limited companies. As of April 2023, the main rate is 25%, though companies with profits under £50,000 may benefit from the small profits rate of 19%.

Corporation tax is payable on:

  • Trading profits.

  • Rental income.

  • Capital gains (profits on selling assets).

Your company must file a corporation tax return (CT600) each year, alongside paying any tax due.

Why construction businesses need specialist support

Construction companies face unique challenges when it comes to accounts and corporation tax. These include:

  • CIS deductions – ensuring subcontractor payments and deductions are reported correctly in your accounts.

  • VAT reverse charge – which affects cashflow and reported turnover.

  • Expenses and allowances – correctly claiming for tools, vehicles, protective equipment, and travel.

  • Timing of income and costs – especially for longer contracts or projects.

Specialist knowledge is essential to ensure your accounts reflect the reality of your business and that you only pay the tax you owe – nothing more.

Faqs

Who needs to file limited company accounts?

All UK limited companies must prepare and file annual accounts with Companies House, regardless of whether they traded or not.

Corporation tax is due nine months and one day after the end of your company’s accounting period.

Late filing of accounts at Companies House results in automatic penalties, which increase the longer the delay. HMRC also charges interest and penalties for late tax returns or payments.

Yes – if your company suffers CIS deductions as a subcontractor, these can usually be offset against your corporation tax bill or reclaimed from HMRC.

Yes – even if you are a small company, filing accounts and corporation tax returns incorrectly can result in fines. An accountant ensures compliance and often saves you money by identifying allowable expenses and reliefs.

Why choose Crown Accountants?

At Crown Accountants, we combine technical expertise with deep knowledge of the construction industry. Our limited company services include:

  • Preparation and filing of annual accounts with Companies House and HMRC.

  • Corporation tax returns (CT600) completed accurately and on time.

  • Advice on expenses and allowances to minimise your tax liability.

  • Integration with CIS and VAT to ensure your accounts reflect all obligations.

  • Full HMRC correspondence on your behalf.

We support contractors, subcontractors, and construction firms of all sizes – from one-person limited companies to growing businesses managing multiple projects.

With Crown Accountants, you’ll have peace of mind that your limited company accounts and corporation tax are fully compliant, while also benefiting from the tax efficiencies available to your business.