Last year alone, Companies House issued penalties of £84m for late filing of accounts. Yep, you read that right – £84,000,000.

In the UK, Companies are given 9 months to file their accounts. This is actually very generous compared to some other countries and is surely enough time to get them done. Especially as their is a requirement to maintain ‘proper records’ throughout the year. So why are so many late then?

For private companies, fines of £150 are imposed automatically, if you fail to file a month after the deadline then the fine rises to £375. It is £750 if you file within 3-6 months late and the maximum fine of £1,500 will be imposed if you file more than 6 months after the deadline. It is also important to note that if you were late last year then all of the penalties are doubled!

165,000 sets of accounts were not sent to Companies House in time last year and the main reasons for this seem to be complacency, laziness, forgetfulness or confusion about what needs to be done. Sadly, none of these excuses will be useful when appealing against a penalty.

As accountants, we don’t like filing penalties, they are needless and most of us try and avoid them like the plague. I write to my clients before their year end, on their year end, a month after their year and and then I start telephoning. Yep, I’m a nag! However, I know the actual cost of not filing accounts on time and it isn’t £150.

Filing accounts late has a negative impact on your credit rating, it can also makes you look a bit incompetent if suppliers, competitors or clients look at Companies House and perhaps most importantly, it scares banks.

I met someone last week who had filed his accounts late and his bank had actually called him to find out why. It turned out that it was his accountants who were at fault and the bank advised him to change accountants, which was why he got in contact with me.

Sometimes it really can’t be helped due to extenuating circumstances and on these occasions it is possible to successfully appeal a late filing penalty. However, in most cases, there isn’t a reasonable excuse so there are no grounds for appeal.

My advice is simple: don’t ignore the reminders you receive from Companies House or your accountants, if you’re struggling to get the information to your accountants then just give them a call. They will be able to advise you on what to do and what they need.

Here’s to no more late filing penalties 🙂

Vikki