If you find yourself in receipt of a tax return, you have a legal obligation to complete and return it even if you don’t think it’s relevant. Failure to submit a return can have financial and, in some cases, legal consequences for individuals and businesses.
Every limited company is required to deliver accounts to Companies House. This is regardless of whether or not the company is trading or currently dormant, the size of the company or how well the company is doing commercially. If you are registered as a limited company you will be required to submit accounts in line with the appropriate deadlines.
What happens if I submit my company accounts late?
You should always aim to ensure that you meet the deadlines for submitting your company accounts. Not only does this avoid the risk of incurring unnecessary fines, failure to do so could result in legal consequences. While late submissions of a few days or weeks may only incur relatively low fines, the longer your accounts are overdue, the more severe the consequences can become.
Companies House has the legal power to pursue company directors for any late submissions. Over recent years, Companies House has been reviewing old cases and have become less tolerant of late submissions. Failure to submit your company accounts could, in some cases, result in directors being served with a court summons.
What are the penalties for missing deadlines for company accounts?
The penalties for private companies for late filing of accounts to Companies House are currently:
- Not more than 1 month: £150
- More than 1 month but less than 3 months: £375
- More than 3 months but not more than 6 months: £750
- More than 6 months: £1,500
You will automatically receive a penalty notice as soon as your accounts are overdue and the penalties will be doubled if they’re late two years in a row.
What if my company accounts are overdue?
Overdue company accounts will begin incurring fines as soon as they become late. These fines will keep increasing until accounts are finally received. If you file your accounts late two years running, fines will be doubled. As a consequence of receiving fines for late returns, you may find that the company’s credit score is negatively affected. This can result in problems with suppliers and other creditors and can make it more difficult to effectively operate as a business.
What happens if I don’t submit accounts to Companies House?
Filing accounts is a statutory requirement for all limited companies in the UK. If you fail to file accounts you are committing an offence under the Companies Act 2006 and a fine and criminal charges may be brought against directors. Ultimately, it is the responsibility of the directors to ensure that accounts are filed on time. The company could be struck off the register and any assets would become the property of the Crown. The directors would then become liable for any unpaid debts. You could also be held in breach of your duty as a director.
Venn Accounts ensure you never miss a filing deadline
Keeping on top of your statutory duties is one of the foundations of running a successful business. At Venn Accounts, we want our clients to thrive within their industry and we help them to do this by helping shape their financial strategy and the overall direction of their business.
Our Statutory Accounts and Micro-Entity services will not only ensure that you never miss a filing deadline, but they can also make sure that your accounts stand up to scrutiny. More broadly, we can help support you in meeting your company goals.
We go beyond the basics to offer a personal and tailored service to UK-based smaller businesses. Contact us today to find out more.
