Your limited company is required to file annual accounts to Companies House even if it’s currently in a dormant state.
This is a key statutory requirement for companies in the UK.
Understanding how and when to file your company annual accounts is essential for any business owner.
Failure to do so can carry financial penalties and ultimately may result in your company being struck off.
When should annual accounts be filed?
Annual, or statutory accounts, provide a financial snapshot of your business that’s quick and easy to understand.
They include the balance sheet and profit-and-loss statements and are due at Companies House once a year.
Preparing limited company accounts should be carried out carefully to ensure accuracy and statutory compliance.
The first set of accounts is due 21 months after a new company is incorporated. In the following years, accounts must be filed annually, nine months after the end of the company’s financial year.
In practice, this means that if your company’s financial year ends on December 31, you will need to fill your accounts by the end of September of the following year.
Similarly, if your financial year ends on the March 31, accounts will need to be submitted by December 31 the same year.
How long do you have to file accounts at Companies House?
The nine-month timeframe from the end of the financial year to the filing cut-off date is a simple rule of thumb that you will need to remember.
This timeframe applies whether your company is still trading or is dormant. If your company is still registered with Companies House but has ceased trading, you’ll need to file dormant accounts.
Dormant companies are still obliged to report their financial position, but the accounts that need to be submitted are simpler than trading company accounts.
How late can company accounts be?
If annual accounts are submitted late, it may result in financial penalties.
Ultimately, it could also result in reputational damage to your company.
The size of the penalty will depend on how late the accounts are, with the fine increasing the longer the delay:
Currently, the penalties for private limited companies are:
- 1 day to 1 month late: £150
- 1 to 3 months late: £375
- 3 to 6 months late: £750
- More than 6 months late: £1,500
For public limited companies, the penalties begin at £750 for being up to a month late, increasing to £7,500 for accounts that are more than six months overdue.
The penalty is doubled if your accounts are late for two consecutive years.
If you’re consistently late filing your accounts, the costs can be significant.
In cases where accounts are filed extremely late or not at all, Companies House retains the right to take legal action.
In the most severe cases, companies may find themselves struck off the register.
Directors may also face sanctions and could face disqualification from serving as a company director again.
Bespoke Annual Account Services from DAAFL
At DAAFL, we prepare file annual accounts for limited company clients.
Our team of financial experts provides a range of services for limited companies, ensuring that they meet their statutory obligations, reduce their liabilities, and optimise their financial record keeping.
Our limited company accounting services cover a broad range of limited company needs, from bookkeeping and payroll to VAT returns and annual financial statements.
Our bespoke services meet your unique needs while giving you more time for other business activities.
Contact us to find out more about how we can help.