Failing to file Annual Returns and Accounts at Companies House on time could result in grave consequences, including personal liability for directors and potential negligence claims against any professionals who do not advise their clients correctly. Filing accounts is a statutory requirement for all private limited companies in the UK.
It was reported in 2014 by Companies House that more than 165,000 UK companies had filed their accounts late during that year, which resulted in £84m worth of fines being released.
No matter whether you are a private or public company, big or small, you have to send your accounts to Companies House ahead of your filing deadline.
Late submission of company accounts can result in one or more of the following outcomes.
1. Failure to file accounts on time is a criminal offences under the Companies Act 2006.
If you fail to file, criminal charges and/or fines of up to £5000 may be brought against the director, with the possibility of making them personally liable.
Ultimately, directors are responsible for the filing of a company’s accounts.
2. Your company could be struck off the register.
Any assets would become property of the Crown and the director may become personally liable for any unpaid debts.
Struggling with HMRC issues?
Whether you’re struggling to pay a VAT bill, missed your returns deadline, or simply not sure what you need to do, our team of expert advisors can help you. We work alongside HMRC every single day, and know exactly what they need, and how they can potentially help you.
Call our team for free, no-obligation advice today on 0800 975 0380 or book a free consultation
3. You could be held in breach of your duty as a director
As a director your duty is to promote the success of your company or to exercise reasonable care, skill and diligence.
If you are late filing this could lead to a claim against you by the company or possibly a liquidator.
4. You could be fined
If you are late with your accounts, your company will be incurring large fines. There is also the possibility that your credit score has been affected, which could limit your trade terms with certain suppliers.
In certain cases you can appeal any fines, however the following reasons DO NOT count as valid reasons for late filing and will not prevent action from Companies House:
• Your company is dormant
• You can’t afford to pay
• It was your accountant’s (or anybody else’s) fault
• You didn’t know when or how to file your accounts
• Your accounts were delayed or lost in the post
• The directors live or were travelling overseas
Worried you won’t be able to pay your HMRC bill?
Tax bills can catch many businesses off guard. Having to pay such a large amount in one transaction just isn’t feasible for some companies. That’s when a Time to Pay arrangement can help. These payment plans provide directors with the ability to pay off the debt in manageable instalments over several months.
If you think that a Time to Pay arrangement might help your business, find out if your company is eligible with our Time to Pay arrangement eligibility test.
Need to talk to someone?
To avoid any liability, company officers (directors/secretaries) and accountants need to make sure that appropriate steps are taken to comply with company filing obligations.
You may be also able to dissolve the company which may release it from any debts levied by companies house.
If you need any help or further information please email us on [email protected] or call us on 0800 975 0380
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