Companies House Late filing penalties can be quite a nuisance, especially if you are a small business owner. If you have not been able to file your annual accounts by the specified deadline, you can face a heavy penalty for being late. Thankfully, there are ways to appeal a Companies House late filing penalty.
What is Companies house late filing penalty
Late filing penalties can be imposed on companies for failing to file their accounts with Companies House on time. The penalties are varied according to the type of company and the date they were due. For public companies, the penalty starts at £750, while for private companies it starts at £150.
To avoid incurring late filing penalties, a company must submit their accounts on time. In order to be accepted by Companies House, all accounts must be in line with Companies Act 2006.
Late filing penalties have been around for several years. The first one was introduced in 1992, with the intention of encouraging directors to file their accounts on time. Since then, the penalties have been increased.
Appeals for late filing penalties
If you think you have a good reason to appeal, you should do so. You will need to provide evidence of the reasons why you were unable to submit your accounts on time and give a reason why you want to have the penalty reviewed.
The good news is that there is a simple and quick way to appeal a Companies House late filing penalty. There are two ways to do it: first is the old-fashioned route where you write a letter to companies House requesting a cancellation for a particular reason. You can also opt for online appeals. This is more convenient if you are short on time, or want to avoid the hassle of a postal service.
While you’re waiting for the appeal to be considered, they are not allowed to collect the late filing penalty.
Companies House has been the target of a lot of attention lately. In fact, a spokesperson for the company recently apologised for the long time it takes to respond to appeals for late filing penalties. As a result, companies that don’t meet the deadline are now experiencing a “penalty appeals log jam.”
While a penalty appeal isn’t a formal process, it can be helpful to know what the best practices are. The most important thing is to be sure that you have a good reason for delaying the submission of your financial statements. And, if you can, you want to show that the circumstances are out of your control.
Dormant company filings
If you have a dormant company, you must file dormant accounts at Companies House every year. Although there is a lot less information required than an active company, you still have to submit your dormant company accounts. This means that you must keep your company’s registration status in good standing and comply with all statutory reporting requirements.
Although dormant companies are not legally obliged to pay any taxes, you must still ensure that you are compliant with the requirements of Companies House and Corporation Tax. If you fail to do so, you may face penalties. Moreover, your company could end up being struck off the register. This can be done by Companies House.
If you have a dormant status, you need to keep your company’s registered office, details of directors and shareholders, and shareholdings up to date every year. You can do this by submitting an annual confirmation statement.
If you do not file the annual accounts on time, you will be liable to receive a penalty irrespective of the fact that your company is dormant. This penalty is doubled if you have incurred a penalty for a period of two consecutive years.
You can use the WebFiling service to submit your dormant company’s account online.
How much is Companies house late filing penalty
Late filing penalties are imposed by Companies House to ensure that businesses and directors file their accounts on time. They are aimed at helping to get company accounts into the public domain.
Late filing penalties can apply to private and public companies. For each consecutive year that a business fails to file its accounts, the penalty doubles. The level of the penalty depends on the type of business and the lateness of the accounts when they are received at Companies House. The table below shows the range of penalties in operation:
| Length of period late | Penalty if private company or LLP | Penalty if public company |
|---|---|---|
| Not more than 1 month | £150 | £750 |
| Between 1 month and 3 months | £375 | £1,500 |
| More than 3 months but less than 6 months | £750 | £3,000 |
| Greater than 6 months | £1,500 | £7,500 |
Companies House offers a range of measures to assist businesses in complying with their filing requirements. It also provides a free service to send e-reminders to small businesses before deadlines.
In addition to this, they have introduced a service that allows you to upload your accounts directly to Companies House. This means you can submit your accounts online and avoid the inconvenience of sending paper versions.
If you’re not sure how to file your accounts correctly, it’s a good idea to seek the assistance of an accountant. An accountant can advise you on how to avoid a penalty and help you get your company accounts in order.
How to pay a penalty from Companies House
You can pay by cheque or online. If you are paying by cheque, you should write your company name on the back of the cheque and enclose a copy of the remittance advice with it.
To pay online you need to have an online account with Companies House. Once the account is set up, you can pay by debit or with credit card.