How to Fill in Your Company Balance Sheet: A Complete Guide with Examples
Every UK limited company must file a balance sheet with Companies House — even if the company is dormant and hasn't traded. But most directors aren't accountants, and the terminology can be intimidating.
This guide explains every field on the balance sheet, what it means in plain English, and gives realistic examples so you can confidently fill it in.
Who This Guide Is For
This guide covers:
- Micro-entity companies (FRS 105) — turnover under £632,000, balance sheet total under £316,000, fewer than 10 employees
- Dormant companies — companies that haven't traded during the accounting period
The vast majority of UK limited companies qualify as micro-entity. If you're not sure, you almost certainly do.
Good news: Micro-entity and dormant companies only need to file a balance sheet with Companies House — no profit and loss account is required. This is called "filleted accounts" and it means Companies House never sees your turnover or profit figures.
What Is a Balance Sheet?
A balance sheet is a snapshot of your company's financial position on the last day of your accounting period. It answers three questions:
- What does the company own? (assets)
- What does the company owe? (liabilities)
- What's left for the shareholders? (equity)
The fundamental rule: Assets minus Liabilities equals Equity. If your balance sheet doesn't balance, something is wrong.
The Fields You Need to Fill In
Fixed Assets
What it is: Things your company owns that it expects to keep for more than one year — equipment, vehicles, furniture, computers, or property.
What to enter: The total value of all fixed assets after deducting depreciation (the amount they've reduced in value through use and age).
Example: You bought a van for £15,000 two years ago. You've depreciated it by £6,000 over those two years. Your fixed assets are £9,000.
Another example: You have a laptop (£1,200 cost, £800 depreciated = £400) and office furniture (£2,000 cost, £500 depreciated = £1,500). Fixed assets = £1,900.
If you have no fixed assets: Leave this blank or enter 0. Many service companies (consultants, freelancers) have no significant fixed assets — that's perfectly normal.
Current Assets
What it is: Cash and things that will be turned into cash within the next 12 months. For most small companies, this is mainly:
- Your company bank balance
- Money customers owe you (unpaid invoices)
- Stock or materials you haven't sold yet
What to enter: The total of all current assets.
Example: Your company has £8,500 in the bank, customers owe you £3,200 for work you've already done, and you have £500 of materials in stock. Current assets = £12,200.
For most small companies: Current assets is mainly your bank balance plus any outstanding invoices. This is usually the biggest number on your balance sheet.
Tip: Check your bank statement on the last day of your accounting period — that's the figure to use. Not today's balance, not the date you're preparing the accounts.
Creditors: Amounts Falling Due Within One Year
What it is: Money your company owes that must be paid within the next 12 months. Common items:
- Corporation Tax you owe HMRC
- VAT you owe HMRC
- PAYE and National Insurance owed to HMRC
- Unpaid supplier invoices (trade creditors)
- Credit card balances
- Director's loan (if the company owes money to the director)
What to enter: The total of everything your company owes within one year. Enter this as a positive number — the system knows it's a liability.
Example: You owe £2,400 in Corporation Tax, £800 in VAT, and £1,500 to suppliers. Creditors = £4,700.
Don't forget Corporation Tax! This is the most commonly missed item. If your company made a profit, it almost certainly owes Corporation Tax at the balance sheet date.
Creditors: Amounts Falling Due After More Than One Year
What it is: Long-term debts — anything your company owes that isn't due for more than a year. Typically bank loans, commercial mortgages, or hire purchase agreements.
What to enter: The total of all long-term debts. Only the portion due after one year goes here — the portion due within the next 12 months goes in the field above.
Example: Your company has a £50,000 commercial mortgage. £4,000 is due within the next year (goes in creditors within one year), and £46,000 is due after that (goes here).
Most small companies: Many small companies have nothing here. If you don't have any long-term loans, skip this field.
Net Current Assets (Liabilities)
Calculated automatically. Current assets minus creditors due within one year.
This shows whether your company can pay its short-term bills. A positive number means you have more short-term assets than short-term debts — a healthy sign.
Example: Current assets £12,200 minus creditors £4,700 = net current assets of £7,500.
Total Assets Less Current Liabilities
Calculated automatically. Fixed assets plus net current assets.
This is the total value of your company before deducting any long-term debts.
Example: Fixed assets £9,000 + net current assets £7,500 = £16,500.
Equity (Shareholders' Funds)
What it is: What belongs to the shareholders after all debts are paid. For most small companies, equity equals:
- Share capital — whatever was paid in when the company was formed (usually £1 or £100)
- Plus retained profits — all the profits the company has ever made, minus any dividends paid out and any losses
What to enter: The total equity figure.
Example: Your company was formed with £1 share capital. Over the years, it has made £20,000 in total profits and paid £4,000 in dividends. Equity = £1 + £20,000 − £4,000 = £16,001.
The golden rule: Equity must equal total assets less current liabilities minus creditors due after more than one year. If it doesn't balance, something is wrong. This is the fundamental accounting equation:
Assets − Liabilities = Equity
Notes and Statements
In addition to the numbers, you need to provide a few pieces of information.
Director's Name
The name of the director who approved the accounts. This must match the name on the Companies House register.
Date of Approval
The date the director formally approved the accounts. This must be on or after the balance sheet date — you can't approve accounts before the period has ended.
Principal Activities
A brief description of what your company does.
Examples:
- "IT consulting services"
- "Plumbing and heating installation"
- "Property management"
- "The company was dormant throughout the period"
Average Number of Employees
The average number of people employed during the period, including directors who receive a salary through PAYE.
Example: You're the sole director and employee all year. Average employees = 1.
Dormant companies: Enter 0.
Dormant Company Balance Sheet — Complete Example
If your company didn't trade at all during the period, your balance sheet is very simple.
Scenario: You formed a company with £1 share capital. It hasn't traded.
| Field | Amount |
|---|---|
| Current assets | £1 |
| Net current assets | £1 |
| Total assets less current liabilities | £1 |
| Equity | £1 |
That's it. Your company was formed with £1, did nothing, and still has £1. The balance sheet balances.
Notes:
- Average employees: 0
- Principal activities: "The company was dormant throughout the period"
What if the £1 share capital was never actually paid in? Technically the share is "unpaid" — you'd show £0 in current assets and £1 in "Called up share capital not paid". But in practice, most directors just transfer £1 to the company bank account.
Micro-Entity Balance Sheet — Complete Example
Scenario: Sarah runs an IT consulting company. She's the sole director and employee. During the year ended 31 March 2026:
- Invoiced clients: £72,000
- Paid herself a salary of £12,570 (tax-free personal allowance)
- Took £40,000 in dividends during the year
- Business expenses: £4,200 (software, phone, insurance, travel)
- Bought a £1,500 laptop (claimed via Annual Investment Allowance)
- Corporation Tax payable: £2,895
- Bank balance on 31 March: £14,785
- No outstanding invoices or supplier bills
Her Balance Sheet
| Field | Amount |
|---|---|
| Fixed assets | £750 |
| Current assets | £14,785 |
| Creditors due within one year | £2,895 |
| Net current assets | £11,890 |
| Total assets less current liabilities | £12,640 |
| Equity | £12,640 |
How Each Number Was Calculated
Fixed assets: £750 Sarah bought a £1,500 laptop. She claimed the full cost as AIA (Annual Investment Allowance) on her CT600, so for tax purposes the value is nil. But for accounting purposes, she depreciates it over 2 years. After one year, the accounting value is £750.
Why the difference? Tax depreciation (capital allowances) and accounting depreciation are separate calculations. Your CT600 uses tax rules; your balance sheet uses accounting rules.
Current assets: £14,785 This is simply Sarah's company bank balance on 31 March 2026. She has no outstanding invoices and no stock.
Creditors due within one year: £2,895 This is the Corporation Tax Sarah owes for the year. It won't be due until 1 January 2027, but it relates to this accounting period so it appears as a creditor on this balance sheet.
Equity: £12,640 This is share capital (£1) plus accumulated retained profits (£12,639). It equals total assets less current liabilities — the balance sheet balances.
What She Files with Companies House
Sarah files only this balance sheet plus notes (director name, approval date, principal activities, average employees). Companies House never sees her £72,000 turnover or her profit figure. That information only goes to HMRC via her CT600 and tax computation.
Where Do These Numbers Come From?
If you're wondering how to actually get the figures, here's a practical checklist:
Bank Balance (Current Assets)
Log into your business bank account. Look at the closing balance on the last day of your accounting period. That's your starting point.
Outstanding Invoices (Current Assets)
Check if any customers owed you money on the last day of the period. If you sent an invoice on 25 March and it wasn't paid until 5 April, that amount is a current asset — you earned it during the period even though the cash arrived later.
What You Owe (Creditors)
Add up everything the company owed on the balance sheet date:
- Corporation Tax (calculate from your CT600 or estimate at 19%/25% of profit)
- Any unpaid VAT returns
- Unpaid supplier invoices
- PAYE/NI due to HMRC
- Credit card balance
Fixed Assets
List any equipment, vehicles, or furniture the company owns. Deduct depreciation. Common rates:
- Computers and laptops: 33% per year (3-year life)
- Office furniture: 20% per year (5-year life)
- Vehicles: 25% per year (4-year life)
Equity
If this is your first year: equity = share capital + profit after tax − dividends paid.
If you've been trading for several years: equity = last year's equity + this year's profit after tax − this year's dividends.
Common Mistakes
1. Forgetting Corporation Tax in Creditors
If your company made a profit, it owes Corporation Tax. This must be included in "Creditors due within one year" even if you haven't paid it yet. This is the single most common mistake.
2. Using Today's Bank Balance
Your balance sheet date is the last day of your accounting period — not the day you're preparing the accounts. If your year end was 31 March but you're preparing accounts in July, use the 31 March bank balance.
3. Including Personal Money
Your company is a separate legal entity. Only include the company bank account, company assets, and company debts — not your personal finances.
4. Getting Share Capital Wrong
Share capital is whatever was paid in when the company was formed — usually £1 or £100. It doesn't change unless you issue new shares. Check your Companies House record if you're not sure.
5. The Balance Sheet Doesn't Balance
If equity doesn't equal total assets less current liabilities (minus long-term creditors), go back and check your figures. The most common cause is a missing creditor or an arithmetic error.
How the Balance Sheet Connects to Your CT600
Your balance sheet isn't just for Companies House. Some figures need to be consistent with your Corporation Tax return:
| Balance sheet field | CT600 connection |
|---|---|
| Fixed assets | If you have fixed assets, you may be claiming capital allowances (AIA) on your CT600 |
| Corporation Tax creditor | Should match the tax calculated on your CT600 |
| Bank interest (if material) | Interest earned goes in CT600 box 170 |
| Dividends paid | Declared on your personal tax return, not the CT600 — but they reduce retained profits on the balance sheet |
If HMRC sees a large bank balance on your accounts but very little income on your CT600, they may ask questions. Consistency matters.
Filing with TaxPipe
TaxPipe makes this straightforward:
- We show only the fields you need — micro-entity gets around 6 fields, dormant gets 3
- Calculations are automatic — net current assets, totals, and equity are computed for you
- Balance check — we verify your balance sheet balances before you can submit
- iXBRL formatting — your balance sheet is automatically tagged in the format Companies House requires
- File alongside your CT600 — no separate portal, no manual uploads
Summary
For most small companies, your balance sheet has fewer than 10 numbers to fill in:
- Fixed assets (equipment value after depreciation)
- Current assets (bank balance + money owed to you)
- Creditors within one year (tax + suppliers you owe)
- Creditors after one year (long-term loans, if any)
- Equity (share capital + retained profits)
Plus a few notes: director name, approval date, what the company does, and how many people it employs.
Start with your bank balance on the last day of your accounting period. That's your biggest number, and everything else builds from there.