As the deadline for filing company accounts approaches, Companies House is sending a clear message: businesses must submit their accounts by the 30th of September to avoid potential penalties that can reach as high as £7,500.
Understanding Filing Obligations and Penalties
All limited companies, whether actively trading or dormant, are required to file annual accounts with Companies House each year. Failure to meet this obligation incurs an automatic penalty, with the amount varying based on the timing of the submission. The penalty range spans from £150 for prompt filings to a maximum of £7,500 for substantial delays.
For private companies and LLPs, there are specific time windows for submitting these accounts. Initial accounts must be filed within 21 months of incorporation or three months from the accounting reference date, depending on which period is longer. Subsequent annual accounts for private companies and LLPs can be submitted within nine months from the end of the accounting reference period. Public companies have a six-month window for this submission.
This is not just a regulatory requirement but a proactive approach to avoid hefty financial penalties and ensure compliance with legal obligations. To avoid getting hefty penalties, filing the company accounts as soon as possible is imperative, and if you don’t know how to do it, always contact an expert to help you with the filing.
The Penalties: Emphasis on Timeline
The penalty structure is determined by the length of the delay measured from the accounts’ due date. It is as follows:
|
Length of period (from due date) |
Penalty for Private Company/LLP |
Penalty for Public Company |
|---|---|---|
|
1-3 months |
£375 |
£1500 |
|
3-6 months |
£750 |
£3000 |
|
More than 6 months |
£1500 |
£7500 |
|
Not more than 1 month |
£150 |
£750 |
Navigating Paper Accounts and Timely Submission
For companies opting to file in paper format, early submission becomes critical. Manual checking and approval processes require additional time. Companies House advises, “If your company cannot file online or by software, you should only send paper accounts. Paper accounts require manual checking, which can take over a week to process during office hours. To avoid complications, send them well before the deadline. This will give you ample time to rectify any discrepancies and resubmit if necessary.”
Taking the Right Steps
The key takeaway is clear: adhering to the deadline for filing accounts is not just a legal obligation, but a proactive measure to avoid significant financial penalties. As changes in legislation push for digital filings, it’s important for all companies to adopt efficient practices that align with regulatory requirements.
