Paying Companies House and HMRC Penalties

companies house penalty

Paying Companies House Penalty for filing your returns and other company details later than the due date is a bit confusing. As a company director, you are supposed to submit various details with the Companies House when you set up your company and then every year regularly.

If you fail to provide these details, Companies House will automatically charge you a penalty and they can strike off your business in extreme cases. So, it is advised to make your filings and company details on time to avoid penalties.

In this blog, we will walk you through the details you are supposed to share with the Companies House and the HMRC. Moreover, we will discuss the penalties and the methods you can pay and avoid them. So, let’s start!


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Companies House Filing Details and HMRC

When you set up a company, you are required to register your company with the Companies House. After this, you will get a Company Name and Company Number. These two details will be registered with the Companies House.

Moreover, your company, public or private, are required to submit account details at the financial year end to the Companies House every year. These account details are available publicly on the official website and anyone can access them free of cost.

Other details include:

  1. Accounts Reference Date and Accounting Period for Filing Information
  2. Confirmation Statement
  3. Corporation Tax Payments
  4. Self-Assessment Tax Returns
  5. VAT Returns

HMRC allows the filing of tax returns by the 31st of January if you are submitting them online. If you are submitting returns on papers, the deadline is 31st October every year.


What Happens If You Fail To Make Annual Filings to Companies House?

Companies House allows the companies to make their annual filings of their accounts at the end of the financial year. However, if they fail to make their filings before or on the due dates, Companies House is liable to get a penalty from those companies.

For example, if your company is filing the accounts for the first time, the filing date begins after 21 days of the registration of your company with the Companies House. On the other hand, if your company is submitting annual account details, you are liable to make them after the nine months of the financial year-end.

  1. For a delay of up to 1 month, you will get a penalty of £150
  2. For a delay of 1 to 3 months, you will get a penalty of £375
  3. For a delay of 3 to 6 months, you will get a penalty of £750
  4. For a delay of more than 6 months, you will get a penalty of £1500

However, these rates get doubled if you consecutively make late filing every financial year. Also, these penalties are different for public companies.


How To Pay Penalty?

There are two ways to pay the penalty charged by the Companies House for late filing returns. The first method consists of the BACS system. It will require the Company name, company number the penalty amount. You will use the Companies House as the account name and the account number 10031154 and the sort code of 60 70 80.

The second method is using the cheque. Within three days, your penalty will reach the Companies House. So, it is essential to take into account the holidays and weekends while submitting the penalties.


How To Avoid Companies House & HMRC Penalties?

You can avoid these penalties if you administer your accounts by marking your calendar with the deadlines of your company’s financial years and the HMRC returns deadlines. Moreover, you can hire a dedicated accountant for making these filings and returns on time. On the other hand, you can subscribe to HMRC alerts for getting regular reminders from them to avoid any penalties.

Also, allow yourself enough time to calculate and manage your account details before the due date arrives. Moreover, you need to take into account the holidays and weekends. So that you submit details on time.


The Bottom Line

The bottom line is you can avoid the Companies House and HMRC’s late filing penalties simply by getting your financial calendar right and scheduled for each of the deadlines. Moreover, you can get the services of a professional accountant for managing your filing and returns accurately and without any delay.

You can pay your penalties online or by sending the penalty by post. If you fail to make these penalties, they will be doubled each day every year, ultimately ending with the chances of striking off your company. So, it is essential you make your annual accounts filing and tax returns timely and accurately.


No need to take stress if you’re late for the late filing as we can sort out your tax filing issues accurately and professionally. Let’s get instant help from the top-notch accountants at the AccountingFirms.


Disclaimer: All the information provided in this article on Companies House Penalty, including all the texts and graphics is general in nature. It does not intend to disregard any of the professional advice.