Company filing penalties you should avoid

Most company directors are aware that they must file annual accounts and a confirmation statement with Companies House. However, missing these deadlines can lead to unnecessary costs and, in some cases, much more serious consequences.

The most common financial penalties apply to the late filing of annual accounts. For a private company, the current penalties are:

• Up to one month late, £150
• More than one month but not more than three months late, £375
• More than three months but not more than six months late, £750
• More than six months late, £1,500

If your company files its accounts late in two successive years, these penalties are automatically doubled. This can become an expensive and entirely avoidable mistake.

The rules for confirmation statements are different. While there is no standard scale of automatic late filing penalties in the same way as for accounts, failing to submit a confirmation statement remains a breach of the Companies Act. Companies House may issue financial penalties, take enforcement action, prosecute company officers and, in serious cases, begin the process of striking the company off the register. Directors can also face fines of up to £5,000 for failing to meet their legal obligations.

The good news is that these problems are easy to avoid. Keep a diary of your filing deadlines, ensure your accounting records are up to date throughout the year and prepare accounts well before the filing deadline.

A few simple administrative procedures can prevent unnecessary penalties, protect your company's reputation and ensure that your business remains fully compliant with its Companies House obligations.

And if instructed to do so, clients can rest easy as we will keep an eye on filing deadlines for you.