As all you limited company directors are hopefully aware, annual filings are due at Companies House within nine months of your financial year end. Companies House is notoriously strict about these filing deadlines, and there are only two acceptable reasons for extending this deadline: applying in advance for additional time, and an event that is truly outside of your control that stops you from filing.
It's that second one that causes the most problems for people, as it appears to be open to interpretation. Companies House has received a number of ridiculous excuses that pretended to be unforeseeable events ranging from hungry livestock to accountant infidelity to erupting volcanoes, but they are never accepted and a late filing penalty is applied in the case of any spurious claims.
Companies House even put together a quick little video about the most ridiculous excuses they've received, which you can watch here (1:06 mins).
Of course, it's not just obviously ridiculous claims that are unacceptable. Your filing must still be received even if you can't afford to pay the outstanding taxes or your company is dormant. Not knowing your deadlines or how to file are also unacceptable reasons, and you can't try to pin the blame on your accountant or any other third party for not filing.
Late filing penalties for private limited companies:
- Up to 1 month late: £150
- 1 to 3 months late: £375
- 3 to 6 months late: £750
- Over 6 months late: £1,500
These penalties double if you are late two years in a row, so be sure that you pay attention to your deadlines! If you're too busy to pay attention to these filing deadlines, it may be time to hire additional staff to handle the bookkeeping and accounting aspects of your business.
“In exceptional circumstances, companies can request an extension to the filing deadline, however these requests must be received before the filing deadline,” explains Nick Parker, a senior enforcement manager at Companies House.
If you're handling everything digitally, you can also file your accounts electronically to save time and effort. Blaming delays in the post won't get you off the hook for late filing penalties, but you can avoid the whole hassle of filing paper accounts using the Companies House WebFiling service.
If your limited company qualifies as a micro-entity, you may be able to file a much simpler version of your accounts with Companies House. If you have 10 or fewer employees, a turnover of £632,000 or less, and under £316,000 on your balance sheet, you are considered a micro-entity. If you're self-employed and just using a limited company as a means of legal and financial protection, you probably qualify for this simpler filing process. Be sure to check with a qualified accountant!
