How can I avoid Companies House late filing penalties?

Companies House late filing penalties are not worth the risk. Here’s why, and how to avoid them.

All limited companies, whether they trade or not, must deliver annual accounts to Companies House (CH) each year. This includes dormant companies.

Running your own company can be fulfilling but also challenging. Directors have multiple responsibilities including keeping company records up-to-date and making sure they’re filed on time. You need to understand your role as a director, the importance of remaining compliant, and how late filing could affect your company.

What are the risks? Companies House Late Filing Penalties – and more

• Missing your filing deadline could affect your credit score or access to finance.
• It can affect your business reputation – how others view your company and whether they want to do business with you, which could potentially impact your entire supply chain.
• There are likely to be financial penalties from Companies House
• and there might be legal consequences – you could get a criminal record, a fine or disqualification.

If you have engaged an accountant, the liklihood is that they will be getting on with compiling your accounts for you in an efficient and timely manner. You might hear from them if they need some information from you, or when the accounts are ready to file and require your sign-off. They will then complete the filing process on your behalf and may call you for a review meeting or discussion about how your accounts are looking and to advise you on the year ahead.

If you are compiling and filing your own accounts, there are a few ways to go about the task, as detailed below.

File online

If you file using CH online services, you’ll be sent an email to confirm they have received your accounts. They will send you another email when they have registered your accounts.

File your company’s accounts online before your deadline. To file online, you may need your company authentication code. If you need to request a new code, you should allow up to 5 days for this to arrive at the company’s registered office.

Software filing

Over 65% of companies use software filing as their preferred method.

There are a variety of software providers which offer a range of accounting packages to prepare and file accounts. Most types of accounts can be filed using software, depending on the functionality of the software package you’re using.

In the future, as part of new legislation brought about by the Economic Crime and Corporate Transparency Bill, you’ll only be able to file your accounts using software. This means you’ll no longer be able to file accounts on paper or using CH online services. Find out more about software-only filing.

The majority of our clients use accounting software and our team is experienced in supporting the transition from paper-based to digial accounting. If you need help to make the switch, please get in touch for a no-obligation discussion.

After the Bill achieves Royal Assent and becomes an Act, CH will let you know the timetable for the phased roll-out of the change to software-only filing. CH state they will make sure that if you don’t already file using software, you have time to make the change before it’s a legal requirement.

Avoid rejections

You should only send paper accounts if your company cannot file online or by software. Accounts filed on paper need to be manually checked and CH only check them during office opening hours, meaning they can take over a week to process.

If you need to file your accounts on paper, you should send them to CH well before the deadline. This will give you plenty of time to correct your accounts and resend them if they are rejected.

It’s also important to make sure you send all documents to the correct Companies House office. This will help avoid any delays, as your documents may be re-directed, and they’ll take longer to reach CH. They will not accept postal delays as a reason to appeal a late filing penalty.

Guidance and support

If your accountant isn’t on-hand to give you a nudge at the right time, you can register for email reminders to know when your accounts are due. You can also check your filing deadline on the find and update company information service.

For advice without obligation, contact our experts for help with filing your accounts with Companies House