Book a free 15-minute discovery call to understand your tax needs. Book Now
Find us on

A Complete Guide on LLP Accounts


Published on:

Table of Content

Table of Content

Every limited liability partnership (LLP) in the UK must prepare and file the company’s accounts referred to as the “Statutory Accounts” annually. The LLP accounts should be filed with the Companies House and HMRC (together with the LLP’s tax return) annually.

What do the LLP Accounts include?

The LLP’s statutory accounts must include the following statements:

  • Statement of Financial Position (or Balance Sheet), which shows the value of assets, liabilities and equity of the company
  • Statement of Comprehensive Income (or Profit and loss account), which shows the company’s income and expenses for the financial period
  • Notes to the Accounts, which provide further details on the accounts
  • Member’s report

In the case of a small LLP, you may choose to file only the Balance Sheet and Notes to the Accounts to the Companies House.

What is the deadline for filing the LLP’s Accounts?

For an LLP, the deadline for filing the annual accounts is nine months from the financial year-end. In the case of the first year, it will be 21 months from the date of incorporation or three months from the date of incorporation, whichever is longer.

Is there a penalty for not filing LLP Accounts?

Failure to deliver the accounts on time is a criminal offence. In addition, the law imposes a civil penalty for late filing of accounts of the company.

The amount of penalty depends on how late the accounts are filed. The penalty amount ranges from £150 to £1,500 for late filing. Please refer to the guidance by the Companies House on the late filing penalties for further details.

Are the LLP Accounts required to be audited?

Small and micro company accounts generally are not required to be audited. However, if the LLP is medium or large, the LLP accounts are typically required to be audited.

Small LLP

 A LLP will qualify as “small” if it has any two of the following:

  • A turnover of £10.2 million or less
  • Total Assets of £5.1 million or less
  • The average number of employees of 50 or less

Dormant LLP

If your LLP is inactive, it generally qualifies as a dormant LLP. In technical terms, a LLP will qualify as dormant if there are no significant transactions.

How will we help you with your LLP Accounts?

As a firm of chartered certified accountants, we provide expert service in preparing and filing the statutory accounts for your LLP. Unlike ordinary accountants, we understand the specific accounting issues faced by the property sector, so the whole process would be hassle-free.

We believe that the accountants’ role is beyond regular compliance while preparing the accounts. We understand how each accounting option will affect your overall credit rating, tax liability and strategic decision. Therefore, we ensure that your accounts reflect a true & fair view while selecting the appropriate options available under an accounting standard.

We deal with all sizes of companies, from small companies to large companies in the property sector. We have a team of chartered certified accountants who have an in-depth knowledge of various accounting standards & laws applicable to the UK companies. Some relevant accounting standards are as follows:

  • Micro entity accounting framework (FRS 105)
  • Small companies accounting framework (FRS 102- Section 1A)
  • Financial Reporting Standard (FRS 102) applicable to medium & large UK companies
  • International Financial Reporting Standards (IFRS)

Suppose the LLP is a property business that is looking to incorporate into a limited company without paying the CGT and SDLT with tax reliefs. In that case, we understand and implement the whole process. Therefore, it is imperative to get your partnership accounts prepare by specialists like us instead of other ordinary accountants.

Share This Article

Raju Gajurel
Latest posts by Raju Gajurel (see all)

More from Raju Gajurel

Are you ready to

Receive exclusive weekly updates directly from us!