As of 1^st February 2009 there will be an increase in the penalties charged to companies for the late filing of their accounts.

What are Late Filing Penalties?

Late Filing Penalties were introduced in 1992 to encourage directors of limited companies to file their accounts on time because they must provide this statutory information for the public record.

Companies Act 2006 requires all companies to deliver annual accounts to the Registrar of Companies by the due date. The Act also specifies that a civil administration penalty shall be payable if the accounts are delivered late.

What are the changes?

- All penalties increased to take account of inflation between 

 1992 and 2007

- A faster rate of increase in penalties for companies who file     

 more than one month late

- A doubling of the penalty for any company which files late

 having also filed late in the previous year

What are the New Late Filing Penalties?

Additionally, where there was a failure to comply with filing requirements in the previous financial year – and that the previous financial year had begun on or after 6^th April 2008 – the penalty will be double that shown in the table.

Important Information

- The new penalties apply from 1^st February 2009

- The new penalties apply to all accounts delivered late, even if
  your accounts became overdue before 1^st February 2009

- The penalties also apply to flat management and dormant

  companies

- If accounts are delivered late, an invoice is issued

  automatically to your registered office address

What will happen if the penalty is not paid?

The penalty will be passed on to collection agents. Failure to pay may result in legal action with the possibility of a County Court Judgement or a Sheriff Court decree against your company.

Further changes

At present the Companies Act requires companies to deliver documents in a legible form and allows 14 days from the date of any rejection letter to re-file them. From 1^st October 2009 this will cease to exist thus a company will no longer have the 14-day concession.

Late filing penalties for other documents

If a company amends its articles of association, a copy of the amended articles must be sent to Companies House within 15 days. Failure to comply is a criminal offence.

From 1^st October 2009, a new civil penalty of £200 for failure to comply will be introduced by the Companies Act 2006 if a company receives notice form the Registrar requiring it to deliver a copy of its amended articles and it does not comply within 28 days. The company would remain liable to criminal proceedings as well as the £200 civil penalty.

For more information please do not hesitate to contact A P Robinson & Co Accountants & Business Advisors on 01472 345888.