Changes to Late Filing Penalties

February 2009

From the 1st February 2009, companies filing late accounts at Companies House will receive higher penalties. New double penalties will also be introduced and there will be faster escalation through the penalty bands.

It is in a company’s own interest to file accounts on time. An accurate and up-to-date company record is useful for potential business partners researching a company. A failure to file on time leaves an incomplete company record giving a potentially damaging impression. In 2007/2008 there were over 1.6 million account searches*, a fact that illustrates the importance to business to have an up to date company register.

In 1992 late filing penalties were introduced by the government to encourage directors to file accounts on time. Changes to late filing penalties from 1st Feb 2009 will comprise of three key elements, the first being an increase to the level of penalties in line with inflation, since the start of the late filing regime in 1992.

The second element is shorter penalty bands, designed to reduce the amount of time companies in default.

Thirdly, the regulations will introduce a double penalty for companies that repeatedly file late. This means that companies that file late for accounts with financial years beginning on or after 6th April 2008 will incur a double penalty should they file late again in the subsequent year. This is aimed at deterring repeated non-compliance.

We recommend that you file accounts well in advance of filing deadline and check that they have actually been received at Companies House.

Coming into effect on 1st February 2009 any company filing accounts late at companies House will receive penalties as follows:

Lateness of Delivery	Private Company	Public Company
Not more than a month late	£150	£750
More than 1 month but no more than 3 months late	£375	£1,500
More than 3 months but no more than 6 months late	£750	£3,000
More than 6 months late	£1,500	£7,500

Further details of the regulations can be found at Companies House

As part of our Secretarial Services, 7Side can submit accounts on your behalf. For further information on our Secretarial or Company Formations services, please contact our Formations Team on 02920 451444 or email us here.

*Statistics from BERR Department for Business Enterprise & Regulatory Reform

** Although Accounts are not completed by 7Side we can recommend a Financial Advisor within your area.

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