Managing a business comes with a lot of responsibilities, and filing your annual accounts on time is a critical one. Missing the deadline can lead to serious penalties that can hurt both your finances and your reputation. Here’s a rundown of what can happen if you file late and some tips on how to avoid these issues.
Financial Penalties
One of the most immediate consequences of late filing is financial penalties. The penalties are structured to increase based on the length of the delay, so timely compliance is important. The penalties are as follows:
Up to 1 month late - £150
1 - 3 months late - £375
3 - 6 months late - £750
More than 6 months late - £1,500
The penalty will be doubled if accounts are filed late in 2 successive financial years.
Legal Consequences
Repeatedly failing to file your accounts on time can lead to more severe legal repercussions.
Personal Liability for Directors: Persistent lateness can lead to directors becoming personally liable. This could result in disqualification from acting as a director
Strike Off: If accounts remain unfiled, Companies House may strike your company off the register. This means your company ceases to exist. Reinstating a struck-off company is possible but it can be a lengthy process.
Proactive steps to avoid filing late
Set Reminders: Mark your filing date on your calendar or diary and set multiple reminders well in advance of your filing deadline. This simple step can help keep you on track.
Check your Email: We send proactive email reminders directly to you. You can also Register for email reminders from Companies House
Keep an eye on your Ember Account: Check your 'My Tasks' or 'Dashboard' in Ember to view your upcoming deadlines
Early Preparation: Make sure you keep on top of your transactions in Ember throughout the year and reach out to us in plenty of time prior to the due date. Our standard SLA for accounts is 6-8 weeks, so we suggest coming in to get these started at least 8 weeks before the deadline. We do also offer 1 & 2 week express services should you need to make use of them.
Conclusion
By understanding the consequences of late filing and taking proactive steps to stay on top of your deadlines, you can avoid unnecessary penalties and stress. Remember, a little preparation and organization go a long way.
If your due date is approaching and you haven't already done so please reach out to our expert team of qualified accountants via Intercom in the bottom right hand corner of your Ember account.