All limited need to file a Confirmation Statement and Annual Accounts on a yearly basis. Even if they’ve never traded. But what happens if you miss the deadline? In this blog post we look at the implications of filing your Confirmation Statement or Annual Account late (or don’t file them at all).
The Confirmation Statement
What is it?
The Confirmation Statement (formerly known as Annual Return) is a report that outlines the current, non-financial state of the company. It details the registered office address, standard industry classification code, director information, shareholder information, person with significant control information and the share capital. Put simply, it’s a snapshot of basic company information.
When is it due?
A company needs to file its first Confirmation Statement no later than 1 year and 13 days after the incorporation date. Following Confirmation Statements are then due on a yearly basis.
For example, a company formed on 01/01/2018 would need to file on or before 14/01/19. Subsequent Confirmation Statements would then be due within a year from the last one being filed.
What happens if I miss the deadline?
Here’s what Companies House – the United Kingdom’s registrar of companies say:
“Your company must deliver a confirmation statement to us at least once a year, even if the company is dormant. If you don’t do this, there could be serious consequences. The registrar might assume your company isn’t carrying on business or in operation and take steps to strike it from the register. If the registrar strikes a company off the register, it ceases to exist and its assets become Crown property.
If your company’s in operation, the company, its directors and any other officers could be prosecuted because they’re responsible for ensuring they submit the confirmation statement on time. Failing to do this is a criminal offence.”
In short, there is no penalty for filing your Confirmation Statement after the deadline, however – if you don’t file at all Companies House could start legal action against the company directors and will eventually remove the company from the register (close it).
Need help filing your company’s Confirmation Statement?
We offer a number of Confirmation Statement services that take the hassle out of the process. Find out more now.
What are they?
Annual Accounts detail the yearly financial dealings of a company. If a company has never traded it must file a specific set of accounts named Dormant Company Accounts.
When are they due?
The first set of Annual Accounts should be filed no later than 21 months after the company was incorporated. Following Annual Accounts should then be delivered no later than 9 months after the Accounting Reference Date (more on this in a bit).
For example, a company formed on 01/01/2018 would need to file its first Annual Accounts by 01/10/2019. The next Annual Accounts should then be sent in by 31/10/2020 (as the company would have an Accounting Reference Date of 31/01).
The Annual Accounts Due Date should not be confused with the Accounting Reference Date:
Annual Accounts Due Date: When the Annual Accounts need to be delivered by
Accounting Reference Date: The period that the Annual Accounts should cover up to
What happens if I miss the deadline?
According to Companies House:
“You can be fined and your company struck off the register if you don’t send Companies House your accounts”.
A similar scenario to the Confirmation Statement. However, the difference is, if you do file Annual Accounts but after the deadline, you will need to pay a penalty fee, the exact total depending on how late the Annual Accounts were delivered:
0 – 1 month late: £150
1 – 3 months late: £375
3 – 6 months late: £750
6 months + late: £1500
What’s more, if you file Annual Accounts after the deadline 2 years in a row, the penalty is doubled.
To avoid the Annual Accounts late filing penalty
If you miss the deadline and don’t want to pay the penalty, you can file a dissolution to close the company instead of filing the Annual Accounts.
Alternatively, you can appeal against the penalty if you believe you have a good reason. See here for more information.
Need help filing your company’s Annual Accounts?
If your company has never traded we can help you file Dormant Company Accounts. Find out more now.
If your company is trading (or has traded in the past) we recommend contacting an accountant for assistance with your Annual Accounts. Remember – if you’re a Companies Made Simple customer, you qualify for a free consultation with your local TaxAssist Accountant. Arrange your face-to-face consultation now.
We hope that you’ve found this blog post helpful. If you do still have any questions, take a look at our Support Home.