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Limited companies are obliged by law to prepare a set of financial accounts each year and publish them by filing a copy at Companies House.
For accounting periods starting before 6 April 2008:
Private companies must file accounts within 22 months of the company's formation, and within 9 months of end of each financial year thereafter.
For accounting periods starting on or after 6 April 2008:
Private companies must file accounts within 21 months of the company's formation, and within 9 months of the end of each financial year thereafter.
There are statutory penalties for late or incorrect filing, for which the directors are liable. Late filing penalties were introduced in 1992. If you submit company accounts late, the law imposes an automatic penalty.
|
Length of period (measured from the date the accounts are due) |
Penalty for a private company |
|
Not more than 1 month
|
£150 |
|
More than 1 month but not more than 3 months
|
£375 |
|
More than 3 months but not more than 6 months
|
£750 |
|
More than 6 months
|
£1,500 |
These penalties will be doubled if a company files its accounts late for 2 successive financial years beginning on or after 6 April 2008.
What are the consequences of failing to file company accounts?
Failure to pay a late filing penalty can result in enforcement proceedings. A director could also incur a separate fine for the same set of accounts if they are not filed on time. Ultimately a failure to file accounts is a criminal offence which can result in directors being personally fined in the criminal courts. The Company Registrar also has the power strike the company from the public record.
Avoiding a penalty
If a filing deadline ends on a Sunday or Bank Holiday, the accounts must still be filed before the due date. If you are unsure when your company's filing deadline is you can check when the accounts are due using the Companies House WebCHeck service - wck2.companieshouse.gov.uk
My company accounts have been rejected - is there a 14 day concession for rejected accounts?
In 1993 a concession was introduced allowing 14 days grace to companies that deliver their accounts on time, but were subsequently rejected. This concession ceased to exist on 1 October 2009 so any accounts received on or after 1 October 2009 which have to be returned for amendment, will no longer receive an extra 14 days in which to re-file the accounts.
The accounts were filed late - what will happen now?
A penalty notice will be sent by Companies House to the company's registered office. The penalty notice will set out the details of the penalty. Details on how to pay the penalty will be included with the penalty notice. If you do not pay the penalty, Companies House will ask their debt collectors to take action.
Can I appeal against the penalty?
You can appeal but the circumstances in which your appeal will succeed are very limited. The example given by Companies House is that of a fire destroying company records a few days before the filing deadline. Reasons such as the company's accountant was ill, that the accounts were lost/delayed in the post or that the company or its directors have financial difficulties will not be sufficient.
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