Change in Late Filing Penalties
Are your accounts in order? If not they need to be or you could be facing some hefty fines. From 1st February 2009 Companies who file their accounts late at Companies House will receive higher penalties.
The penalty rates were first introduced in 1992 to encourage directors to file accounts on time, and have remained unchanged since then. The new rates came into force on 6th April 2008, and are effective from the start of next month. All penalties are set to increase by 50% which means for a private company who files its accounts up to 3 months late they will suffer a penalty of £150 as opposed to the current £100. If filing over 12 months late the penalty increases to £1,500 for a private company and £7,500 for a public company.
For repeat offenders a double penalty system has been introduced therefore if a company repeatedly files their accounts late and do so for two subsequent years they will receive a double penalty. This will only apply for accounting periods beginning on or after 6 April 2008 so if you have filed late in the past you are not already facing double penalties.
Companies should also be aware that at the same time the penalties were increased so too were the filing deadlines shortened by one month. A private company now only has 21 months from its date of incorporation or in subsequent years nine months from its year end to submit its accounts to Companies House. This also is effective for accounting period beginning on or after 6th April 2008.
The reduction in deadlines to file accounts could mean that unsuspecting companies may face the new penalties sooner than they realise. The Registrar has very limited discretion to not issue penalties. It is recommended that accounts are filed well in advance of their deadlines and to also check that they have been received by Companies House. The excuse that accounts have been delayed in the post is not considered satisfactory!
If you are unsure when your company’s accounts should be filed it is well worth seeking advice to avoid that penalty.
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