Guide for filing LLP accounts for the first time

Choosing a limited liability partnership (LLP) as the legal structure for your business is a great way to get the liability protection of a limited company, with the tax benefits of company profits being taxed at the partner level. 

But having founded the partnership, started trading and built up a customer base, what’s the correct way to file your LLP accounts?

In this guide, we'll explain why these statutory accounts are required, and the steps you should take to file them effectively with Companies House. 

Understand what LLP accounts are and why they matter

As a trading LLP, you’re required under UK law to keep accurate financial records and submit these statutory accounts to Companies House on an annual basis. The filing date will usually be nine months after your company year-end. 

Keeping and filing accurate accounts is a crucial part of your compliance duties. 

It means the partnership has:

• Detailed financial records of all trading and transactions: This is important for compliance purposes, but also to provide financial reporting and forecasting, and to demonstrate financial health to investors and lenders.
• Records required for filing your business taxes: Partnerships don’t pay corporation tax like a limited company. But your individual partners will be required to pay income tax on any profits made. If a partner is registered as a limited company, they will pay corporation tax on these profits. VAT may also be due if your taxable turnover exceeds the VAT threshold for registration. 
• Compliance with the rules around filing of LLP accounts: UK-based LLPs must file annual accounts with Companies House within nine months of the end of the LLP's accounting period – this is typically 12 months from the date of incorporation. Designated members are responsible for ensuring these filings are completed, with failure to file on time resulting in penalties. 
• Not incurred penalties for late filing: If your LLP’s accounts are not filed on time with Companies House, or tax returns are not delivered in a timely way with His Majesty’s Revenue & Customs (HMRC), you could face penalties – which could impact your cash-flow position.  
• A professional outlook and financial transparency: Having publicly available accounts gives all stakeholders a transparent view of your LLP’s revenue generation, profitability and financial management. This is vital when applying for funding and serves to boost your brand profile as a business.

Who is responsible for preparing and filing LLP accounts?

Filing LLP accounts is a mandatory responsibility for the whole partnership group. But to make the process more effective and transparent, an LLP must have at least two  ‘designated members’ who are responsible for the financial management of the LLP.

Let’s look in more detail at the responsibilities of your LLP’s designated members

1. Designated LLP members' responsibilities

Designated members are members of the LLP who’ve taken on additional administrative and legal responsibilities, similar to the role of a director in a limited company. They’re legally accountable for making sure the LLP complies with its statutory obligations, which include:

• Maintaining proper accounting records.
• Preparing the annual statutory accounts.
• Ensuring the accounts are signed on behalf of the members.
• Delivering the accounts to Companies House by the due date.
• Notifying Companies House of any changes to the LLP's details.
• Ensuring the LLP submits its partnership tax return to HMRC.
• Appointing an auditor if the LLP is not exempt from audit.

2. Role of accountants or auditors (for larger LLPs)

When engaged by an LLP, an accountant's role is typically to prepare the financial records and accounts, and to provide tax advice. Additionally, your accountant should work with the partners to keep the LLP in good financial health and in line with all relevant compliance requirements.

An auditor's role is to provide an independent opinion on whether the accounts give a true and fair view of the LLP's financial position and performance. They must also check that the accounts have been prepared in accordance with relevant accounting standards and legal requirements. This role is typically required for larger LLPs.

An LLP is generally required to have its accounts audited if it exceeds certain size thresholds (meeting at least two of the following criteria for two consecutive years):

• Turnover over £10.2 million
• Balance sheet total over £5.1 million
• More than 50 employees

3. Importance of internal checks and approvals before submission

Your accountant will have prepared your accounts, and your auditor will have given their professional opinion on these financial statements. But, ultimately, it’s still down to the partnership and your designated members to check the accounts before submitting them to Companies House.

Let’s look at some of the major checks you should carry out:

• Review your records and reconcile all transactions: Before filing, you must meticulously check all financial records for completeness and accuracy. Reconcile all bank accounts, debtors and creditors to make sure your figures match, providing a solid foundation for the accounts.
• Comply with accounting standards: Your draft accounts must adhere to UK accounting standards (usually FRS 102) and present a ‘true and fair view’. All required notes and disclosures must be accurate and comprehensive, ensuring regulatory compliance.
• Auditor review (if applicable): For larger LLPs, the independent auditor's report must be reviewed and accepted. This crucial step ensures there has been an objective, third-party review and that the accounts are free from material misstatement before submission.
• Member approval and signature: Designated members must formally approve and sign the final accounts. Getting input on the accounts from all LLP members is good practice, but a designated member's signature on the balance sheet is mandatory.
• Final filing checks: Your designated members must verify the correct accounts version is prepared and meets Companies House formatting rules. Crucially, confirm the submission date aligns with the statutory deadline to avoid being hit with any unexpected penalties for late filing.

What must be included in your LLP accounts?

Your LLP accounts must include the accounting basics of a balance sheet and a profit and loss (P&L) statement to meet Companies House requirements. You’ll also need to include any additional notes to explain the figures contained in the accounts.

Let’s look at what must be included in your balance sheet and P&L. 

The balance sheet:

A balance sheet for a UK-based LLP provides a snapshot of its financial health at a specific point in time (the end of the LLP’s financial year). 

The exact format can vary slightly depending on the accounting standard used (e.g., FRS 102 for most LLPs, FRS 105 for micro-entities).

Balance sheet example (illustrative figures only):

Profit and loss statement:

A profit and loss statement (P&L) shows your LLP's financial performance over a specific period, typically the financial year. It details the revenues earned and expenses incurred, culminating in the profit or loss for the period.

Similar to the balance sheet, the exact level of detail in a P&L statement filed with Companies House can vary depending on the LLP's size and the accounting standard applied (FRS 102 or FRS 105 for micro-entities). 

Smaller LLPs may choose to file an abridged P&L, providing less public detail.

Profit and loss statement (P&L) example (illustrative figures only):

Are LLP accounts publicly available?

Yes, by filing your LLP accounts with Companies House they become a matter of public record. This means that anyone can view your business accounts with an online search through the Companies House register. 

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Filing your LLP accounts online with Companies House

Once your LLP accounts have been prepared, audited, checked and signed off, the next step is to file these statutory accounts with Companies House.

Filing is carried out through the Companies House website or via accounting software, allowing you to complete the whole process online, without any physical paperwork. 

Online filing is much faster than submitting hard-copy accounts and helps to reduce errors and delays to your filing. You’ll get immediate confirmation of the accounts being filed, giving you proof that you met the required filing date. 

How to file your LLP accounts online: a step-by-step guide

You have the options of using Companies House WebFiling or using your accounting software to submit the statutory accounts directly to Companies House. 

Both methods require a number of steps to prepare the accounts, gather the data, submit the accounts and get confirmation that the accounts are now filed. 

Let's break down the general process:

1. Prepare your accounts: 

Make sure your statutory accounts are fully prepared and comply with the relevant UK accounting standards (FRS 102, FRS 105, etc.) and LLP regulations.

All internal checks and approvals (as discussed previously) must be completed, and the accounts must be signed by a designated member.

2. Choose your filing method:

Once the accounts are ready, you have a number of choices around how to actually submit the digital data for your accounts to Companies House.

• Companies House WebFiling (direct): Check the guidance on filing LLP accounts with Companies House. Not all LLP account types can be filed directly via the standard WebFiling service for companies. If your specific LLP account type is supported, you can use this portal.
• Software filing (most common for LLPs): Many commercial accounting software packages (e.g. Xero, QuickBooks, Sage or specialist company secretarial software) have built-in functionality to generate and submit accounts directly to Companies House in the required iXBRL (Inline eXtensible Business Reporting Language) format. This is often the most straightforward and least error-prone method.
• Accountant/Agent: Your accountant will have prepared the accounts and can also be responsible for filing the accounts electronically on your behalf, using their own professional cloud accounting software.

3. Get Your Authentication Code (if using direct WebFiling):

If you're using the direct Companies House WebFiling service for LLPs, you will need the LLP's authentication code. This is a 6-character alphanumeric code that acts as an electronic signature.

If you don't have it, you'll need to request it from Companies House. They will send it by post to the LLP's registered office address, which can take up to five working days.

4. Log in (or access software filing):

The next step is to log into WebFiling, or the accounting software you’ll be using, to submit and file your online accounts. 

• WebFiling: Go to the Companies House WebFiling service. You'll need to register an account if you haven't already and then log in using your email and password. Once logged in, link your LLP using its company number and authentication code.
• Software filing: Open your accounting or company secretarial software and navigate to the accounts filing section for LLPs.

5. Input/upload your accounting data:

Having signed in, you now need to input or upload the actual accounting data and information that makes up your LLP accounts. 

• WebFiling: you’ll be guided through a series of forms to input the financial data directly into online templates. This will mean filling in figures for the balance sheet, profit and loss, and providing any additional notes.
• Software filing: The software will usually have already generated the accounts in iXBRL format. You can review the prepared accounts within the software before submitting them in a digital format to Companies House.

6. Review and validate:

Before submitting the final accounts, the WebFiling service or your software will perform validation checks. This is done to catch common errors or missing information and gives you a chance to address any errors and update them.

You can then review a draft of the accounts as they will appear to Companies House.

7. Submit the accounts:

The final step is to submit the accounts, either via WebFiling or through software.

• WebFiling: Once validated, you'll confirm the submission, usually by entering your Companies House password and/or the LLP's authentication code again.
• Software filing: The software will have a ‘submit’ or ‘e-file’ option that sends the iXBRL file directly to Companies House. You'll usually need to confirm this with a password or credentials relating to the LLP.

8. Confirmation:

You should receive immediate on-screen confirmation and typically an email from Companies House confirming receipt of your filing.

A second email will follow later, confirming whether the accounts have been accepted or rejected. If rejected, the email will usually state the reason, and you'll need to correct and resubmit the accounts.

Common pitfalls when filing your accounts online

Filing your LLP accounts can be a complex business. So, it’s important to take care when completing the process. Make sure you enter all figures accurately, check the final draft accounts and, most importantly, meet the deadline!

Can I file LLP accounts online with Companies House?

Yes, it’s advisable to file your accounts online to make the process faster, more accurate and less prone to human error. 

The most efficient way to file your LLP accounts is straight from your accounting software, in the iXBRL format that’s required by Companies House. 

How to meet deadlines and avoid penalties for late filings

It’s vital to meet the required deadline for submitting and filing your LLP accounts.

Typically, accounts for an LLP must be filed within 9 months of your LLP’s financial year-end. The date of filing still applies, even if that day is a Sunday or a public holiday, so make sure you’ve submitted your accounts before that deadline.

Civil penalties can be imposed for late submission of your LLP accounts. The size of the penalty will increase the later you are with the filing. Penalties begin from £150 for accounts that are not more than one month overdue. They then rise on a sliding scale up to a maximum of £1,500 for accounts that are more than six months late.

The easiest way to avoid these late penalties is to schedule internal deadlines and reminders, so your designated members keep you compliant with the rules. 

What small LLPs need to know about simplified account formats

If you’re a smaller LLP, you may not need to file full accounts. If you qualify as a micro-entity, this means you can file simplified accounts and also don’t need to get your accounts audited by a third-party auditor. The same applies if your company is currently dormant and no longer trading

For accounting periods that begin on or after 6 April 2025, a micro-entity must meet at least 2 of the following conditions:

• an annual turnover no more than £1 million
• a balance sheet total no more than £500,000
• no more than 10 employees on average

Micro-entity accounts will be prepared using the FRS 105 rules, and will contain less detail. As such, they’re quicker to produce and result in less publicly available business and financial information about your LLP. 

Do small LLPs need to submit full accounts?

No, if you qualify as a micro-entity you can file less detailed accounts for your LLP. Instead of using the general FRS 102 standard for your accounts, you can use the FRS 105 template. These accounts are quicker to prepare, simpler and release less of your company and financial information into the public domain.

Improve your loan chances with clear and accurate LLP accounts

Accurate and timely LLP accounts can be a major bonus when your LLP is looking for external funding or investment. 

Having public access to your statutory accounts allows banks, lenders and potential investors to check your performance and your overall financial health as a business. This is important when assessing your risk profile as a potential borrower. 

Specialist online lenders, like iwoca, use LLP accounts to assess your risk level, your future business performance and whether you’re eligible for funding. 

Clean financial records and tax returns make for a smooth loan application and more chance of your application being accepted. 

When a business loan can help with accountancy and compliance costs

In the course of running your LLP, there will be times where a quick injection of additional capital becomes a real life-saver.

Short-term, flexible business loans, like iwoca’s Flexi-Loan, are ideal for topping up cash flow when your cash runway is looking compromised.

Situations where a business loan might be needed include:

• Using business finance to manage unexpected compliance or accounting fees
• Balancing out unstable cashflow due to seasonal or one-off accountancy costs
• Maintaining compliance without straining operational cash flow.

iwoca: flexible business loans for your LLP

We believe in helping your LLP grow and prosper, by helping you source extra capital, whether it’s to trade, run your everyday operations or meet your compliance costs.

An iwoca Flexi-Loan offers;

• Lending of £1,000 to £1 million
• Money in your account in hours not days
• No penalties for early repayment

Apply for an iwoca Flexi-Loan

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