Our last blog explored the filing requirements for a new company. This will explore the implications of failing to comply with these requirements.
What If I Forget to File?
Breach of Director Duties
As a director, it is your duty to ensure that information is provided to the relevant bodies (Companies House, HMRC etc.) on time. If you fail to do this, you are in breach of your responsibilities. You will be committing a criminal offence and therefore liable to be prosecuted. Directors in breach of their duty could be fined up to £5,000 and receive a criminal record.
Late filing of annual accounts will lead to a financial penalty dependent on how late the accounts were filed. Companies House issues late filing penalties starting at £150 for private companies and LLPs up to £1,500. For public companies, the penalties start at £750 and increase to £7,500. These penalties will double if accounts are filed late in two consecutive years.
The penalties for filing a Company Tax Return late begin at £100 and increase based on HMRC’s calculation of the Corporation Tax you owe. Filing your Company Tax Return late 3 times in succession will lead to the £100 starting penalty increasing to £500.
Dissolution is the process of closing a company down, this can be done voluntarily or compulsorily for a failure to comply with filing requirements. If you fail to file your confirmation statement, or annual accounts, your company faces a compulsory strike off action.
What Can I Do to Prevent This?
You should keep your filing dates written in your diary. You can check your company profile on the Companies House website to ensure you have the correct dates.
Appoint a company secretary to assist you with the filings or enlist the support of a professional firm (formation agent, company secretarial service provider or accountants) to complete your filings.
If you register your company with 1st Choice Incorporations, we will send you email reminders for your filing dates but be sure to check your company profile on Companies House for your exact filing dates, as it is your responsibility to meet the filing deadlines.
If you need any filing assistance, please do not hesitate to contact us today and we will be happy to assist you.