How will you incur Companies House late filing penalties
The United Kingdom has a concept when it comes to the businesses, called as the Companies House. The Companies House is considered to be the registrar for the companies and is called as an executive agency and a trading fund. Any type of company, be it the public or the private companies, come under the Companies House and must be incorporated after registering with them. As such, the companies are required to submit the financial records for their business with the Companies House every year. Failure to pay dues or submit the records may lead to the incurring of penalties for the companies.
The Companies House late filing penalties are levied on the companies that miss out on paying the dues for their businesses registered with the Companies House. Except for the companies that are exempt from the due payment, as per certain eligibility criteria, rest of the companies must pay a due to the trading fund. Companies that are public and private are eligible for the due payment and the different types of companies under them include the registered limited companies, small and inactive companies and the subsidiaries.
How will you incur Companies House late filing penalties?
The penalties were first introduced in the year 1992, to ensure that the directors of the companies filed their financial records on time. This is necessary for the financials would be kept in the public record. If the company misses out on the deadline, they are immediately charged with an automatic penalty for the late filing. Even under the filing of accounts, there are few things that you need to consider.
The filing time for your financial records vary according to the number of times your company has filed the accounts with the Companies House. If you miss out on the deadlines, then Companies House late filing penalties are levied for the companies from the date the accounts are due. The penalties will be charged only for the accounts held by the company and no other document apart from that. As for the types of accounts to be filed:
· First account
If the accounts of the company covers more than 12 months, then the private companies must produce the accounts within 21 months of incorporation and for the public companies, it must be delivered within 18 months of the incorporation of the company.
· Subsequent accounts
After the submission of the first account, the public companies must deliver their accounts within 6 months, while the private companies have 9 months to deliver the accounts. The filing time might reduce if there is a change in the accounts reference period.
The HMRC keeps track of the penalties and the dues paid to the Companies House. The companies can directly deliver their accounts to the Companies House through the online system or produce them in person to the authorized offices in the region. Needless to say, the Companies House emphasizes on the need for adhering to the deadline but some exemptions or extension in the deadline can be made due to unforeseen circumstances on the part of the registered company.
Avoiding the Companies House late filing penalties
As such, there are few ways by which you can make sure that you are filing the accounts on time to avoid the Companies House late filing penalties. You need to understand that submitting the accounts within the deadlines does not only pertain to submitting the records on or before the deadline, but they must reach the Companies House within the specified time. It is not guaranteed that the documents would reach the office the next day of submitting the records. Thus, give ample time for the documents to reach their office, for which it is advisable to send the documents well in advance.
Some of the methods that you can choose to avoid the Companies House late filing penalties include:
· Keep track of the accounts filed with the Companies House and mark the calendar to remind you of the deadline
· Companies House sends out reminders to the directors, so check them for the deadlines
· Instruct your accountants to prepare and submit the accounts on time to avoid any penalties
This is the legal accountability of limited companies director to executive and verify that records are arranged and submitted to the Companies House before the due date.
This content is originally shared at: http://www.accountingweb.co.uk/community/blogs/vidit-agarwal/late-filing-penalties-for-limited-companies