Late Filing Penalties for Limited Companies – A Beginner’s Guide!

late filing penalties

It is required by the companies’ house as well as HMRC that the limited companies have to perform a range of reporting and filing on an annual basis. This is performed on a need basis as well. Secretaries and the directors are liable for the submission of the annual submission statement in order to avoid late file penalties. Company tax returns and annual accounts also come under the responsibilities of the company officers till the deadlines. The same is performed for clearing corporation tax and considering the certain timeframe accordingly.

This is because the failure of meeting the deadlines can make you suffer from late filing penalties. If the deadlines are not met and the case gets worse, the consequences can bring it to the disqualification of the director or the dissolution of the company. In this blog, we have covered the details of the confirmation statement, annual accounts and corporation tax.


The Statement of Confirmation

The requirement is that you should prepare the confirmation statement once a year at least. Its deadline comes under the timeframe of 14 days after the anniversary of the following:

  • The first statement of the company formation
  • In the case of subsequent statements, the confirmation statement and the old confirmation statements are to be considered seriously.

Furthermore, it is required for all the companies whether it is a dormant company or a limited company that a confirmation statement is prepared for the companies house. It will be taken as a criminal act in case of failure to prepare the confirmation statement at least once in 12 months. You need to realise that there is no system of automatic late filing penalty in case the statement of confirmation is prepared late.


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Annual Accounts Prepared By Companies and Late Filing Penalties

Just like the confirmation statement, the annual accounts are required to be submitted once a year by all the companies. In case a company is not in the trading mode, even then it has to prepare the annual accounts. This is the responsibility of the directors to make sure that the annual accounts are prepared on time and are delivered to companies house as well. This process should be completed after the time frame of months after the financial year of a company ends. The detail of the financial year-end is explained by the accounting reference date.

In the case of new companies that take longer to cover the first account details which is a normal practice. The companies house should be informed after the incorporation date of the company.


Corporation Tax Accounting Period

The filing of company tax returns should be done within the time period of a year after the corporation tax accounting period of a company. This file should be submitted and prepared for the HMRC even if there are no tax amounts, the case of dormant companies is different as they do not have a requirement to file tax returns as per HMRC. The following points are to be considered seriously in the process of corporation tax:

  • In case you fail to file a tax return according to the required time frame, you will be suffered from the flat-rate late filing penalty.
  • An additional amount of money will be charged as a fine and penalty in case the process is done after the time of three months.
  • A further penalty will be charged if the process is late by a time period of a year.
  • In case a company is late in filing the tax returns consecutively for three times or more in the accounting period, there will be an automatic increase in the penalty.
  • In the case of consecutive late filing and after the three months, the application of additional charges will be set on the filer immediately.


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The Bottom Line

Now that you have gathered a fair amount of information about late filing penalties, we can bring the discussion towards wrapping up. Finally, we can sum up by saying that corporation tax is valid on a normal due date with HMRC. In case you fail to complete the process of tax returns within the required timeframe at the end of the accounting period of a company. The more you will delay the submission of the tax returns, the more penalties will be charged and increased automatically after every delay.

We hope these few minutes of reading will help you to submit your tax returns according to the required standards. As this will help you to avoid the penalties of late filing.


Disclaimer: The information about late filing penalties provided in this blog is general in nature. It does not intend to disregard any of the professional advice.