A clean year-end is what makes a corporation tax return a one-day job rather than a six-week project. This checklist for UK limited companies follows the order most accounting teams work in: reconcile, accrue, adjust, provide, and file. Print it, work down it, and your auditor or accountant will spend their time on judgements rather than chasing data.
1. Reconcile every balance sheet account
Every balance on the closing trial balance should tie back to an external document. The standard order:
| Account | Reconcile to |
|---|---|
| Bank accounts | Bank statements (see bank reconciliation) |
| Trade debtors | Aged debtor list, customer statements |
| Trade creditors | Aged creditor list, supplier statements |
| VAT control | Last filed VAT return + post-period adjustments |
| PAYE control | Final FPS, EPS and HMRC PAYE liability statement |
| Corporation tax | Prior year CT600 + payments |
| Director’s loan | Personal expense and drawing records |
| Fixed asset register | NBV calculation for each asset class |
| Stock | Year-end stocktake working papers |
2. Cut-off
Confirm each transaction is in the right period:
- Sales invoices dated up to year end, even if issued days after
- Supplier invoices for services delivered before year end
- Goods received not invoiced (GRNI accrual)
- Subscription periods that span the year end
- Holiday accruals from accrued employee leave
Read cut-off at month-end for the working method.
3. Accruals and prepayments
| Item | Accrual or prepayment? |
|---|---|
| Audit fee for the year | Accrual |
| Quarterly utilities billed in arrears | Accrual |
| Annual insurance paid in advance | Prepayment |
| Software subscription paid annually | Prepayment |
| Bonus accrual for staff | Accrual |
| Interest on bank loans | Accrual (if not yet billed) |
The accruals and prepayments page has the journal templates.
4. Fixed assets and depreciation
- Add new acquisitions to the asset register
- Remove disposals and post the disposal journal
- Run depreciation for the year per your capitalisation policy
- Compare tax pool balances to the accounts NBV
- Plan capital allowances claims, including full expensing and AIA
5. Inventory and provisions
- Stocktake on or close to year end, valued at lower of cost and NRV
- Provide for slow-moving and obsolete stock
- Bad debt provision based on aged debtors and known disputes
- Warranty or returns provisions if applicable
- Dilapidations on leased property if material
6. Tax provision
- Calculate corporation tax based on adjusted accounting profit
- Apply marginal relief if profits between £50k and £250k
- Account for deferred tax on accelerated capital allowances and timing differences
- Post the taxes payable and provisions in the chart of accounts journal
- Confirm payment is scheduled for 9 months and 1 day after year end
7. Dividends and reserves
- Confirm distributable reserves before any year-end dividend
- Document board minutes and dividend vouchers
- Update the equity statement
- Check our dividend tax for limited company directors article for personal tax planning
8. Statutory filings
| Filing | Deadline |
|---|---|
| Companies House annual accounts | 9 months after year end |
| Confirmation statement | Annually, within 14 days of review date |
| HMRC CT600 + iXBRL accounts | 12 months after year end |
| Corporation tax payment | 9 months and 1 day after year end |
| P11D (if benefits in kind) | 6 July following tax year |
9. Final review meeting
A 30-minute review with the owner or board should cover:
- Movement vs prior year on key lines
- Variance vs management accounts
- Significant judgements and estimates
- Going concern position
- Subsequent events to disclose
- Sign-off authority
Wrap-up
Year-end is a calendar discipline, not a heroic effort. Combine this checklist with the year-end deadlines page, the Companies House annual accounts guide, and the HMRC corporation tax filing pages. See pricing for bookkeeping with year-end preparation in every plan.