If you’re unsure whether you fall into this category, ask your accountant, or find out more here about Limited Companies on the government website.

Why are there deadlines and penalties?

Introduced in 1992 penalties were put in place to encourage directors to file their accounts/reports on time. A limited company’s accounts are required for the public record, and it is a criminal offence to file them late/not file them at all.

Whether you are a public or private company, a large or a small one, and even if you’re no longer trading, you must still send your accounts and reports to Companies House every year, by the deadlines stated above. If you are late in submitting your accounts, the penalty is automatically applied.

Check out the government website for information on accounting reference dates and filing deadlines.

Whose responsibility is it?

As a director of the company you have a personal responsibility to get the company accounts in on time. This means Companies House have to have received them, and in the right format.

This means you should always allow enough time for them to be received by Companies House before the deadline. i.e. if your deadline falls on a Sunday or a Bank Holiday then make sure it arrives before this. And always remember, if you’re filing by post, first class post with Royal Mail does not always guarantee next day delivery.

It is possible to appeal for exceptional circumstances as to why you filed late, but this will only be granted if you can prove these exceptional circumstances.

I get so busy, how can I make sure I remember?

If you’re worried about forgetting, it is possible to register for email reminders from Companies House. Or you could make a note in your calendar or diary – with an alert too, if need be. Make sure it’s a calendar or diary you look at on a daily basis. Alternatively, you can let your accountant know in good time when it is due, so they can file them.

If you are unsure when your accounts are due, you can use Companies House service to check.

How do I file my accounts?

As a limited company, you can file accounts online rather than by post. This is far quicker and easier, and means things are less likely to get lost.

What if I make a mistake?

Unless your accounts meet all the requirements of the Companies Act, they will be returned to be amended. i.e. if you forget to sign the balance sheet. If you then file the correct accounts, late, even though you filed them in time to start with, the company will still get a late filing penalty.

If you have a UK Limited Company, here are the deadlines and penalties you need to be aware of:

Companies House:

Deadlines

Your first set of statutory accounts
Deadline: 21 months from the date of incorporation

Your subsequent annual statutory accounts
Deadline: Nine months after your financial year-end

Confirmation Statement (previously Annual Return)
Deadline: File online annually according to the date set online

Penalties

Time after the deadline                           Penalty
Up to 1 month                                           £150
1-3 months                                                £375
3-6 months                                               £750
More than 6 months                                £1,500

If your accounts were late the previous year then these fines will automatically be doubled so it’s important you file your accounts by the due date.

HMRC Penalties and Deadlines:

Statutory accounts:

Deadlines

Payment of Corporation Tax                                                           
Nine months and one day after each accounting period (not necessarily the same as the financial year or period of account)

Your statutory accounts in iXBRL format
Your company tax return CT600
Your Corporation Tax computations
12 months after the end of the period for which accounts are prepared (period of account)

If the period of account includes more than one accounting period, a CT600 must be delivered for each.

If the period of account is more than 18 months long, the CT600s are due 30 months after the start of the period of account.

Penalties

Time after the deadline           Penalty
1 day                                   £100
3 months                               another £100
6 months                                   HMRC will estimate your Corporation Tax bill and add a                                                                                                                       penalty  of 10% the unpaid tax
12 months                                  another 10% of any unpaid tax

If your tax return is late three times in a row, the £100 penalties are increased to £500 each.

If your tax return is six months late, HMRC will write telling you how much Corporation Tax they think you must pay. This is called a ‘tax determination’. You can’t appeal against it. You must pay the Corporation Tax due and file your tax return. HMRC will recalculate the interest and penalties you need to pay.

Please see below link for the new VAT  penalties and interest regime:

VAT Penalty and Interest

PAYE and CIS:

If you pay yourself or your staff or you engage workers in the Construction Industry you will need to run a payroll and operate PAYE and/or make deductions under the Construction Industry Scheme (CIS).

Real-Time Information (RTI) reporting of Pay As You Earn and Class 1 National Insurance (PAYE): Full Payment Submissions
Deadline: On or before the date you make a payment to any employee.

RTI reporting of PAYE: Employer Payment Summary (EPS)
Deadline: On or before the date you make a payment to any employee, unless your EPS is to report that no payments have been made. If so then by the 19th following the payroll month.

PAYE and Construction Industry Scheme (CIS) tax deducted
Deadline: By the 19th of every month. For payments by cheque: 14 days after the tax month to which the payment relates.
Deadline: By the 22nd of every month. For payments made electronically: 17 days after the tax month to which the payment relates.

CIS monthly return
CIS: pay tax
Deadline: By the 19th of every month. For payments by cheque: 14 days after the tax month to which the payment relates.
Deadline: By the 22nd of every month for payments made electronically: 17 days after the tax month to which the payment relates.
CIS tax deducted is due at the same time as PAYE.

Penalties

The penalty for late filing of PAYE is £100 for every month or part month that you are late for every 50 employees.

Interest is payable on every late payment throughout the year.
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Penalty charges may be issued for missed payments of PAYE as follows:

• Missing one payment in a tax year there is no penalty, as long as the payment is less than six months late.
• Missing two to four payments, a 1% penalty is issued (of the PAYE due).
• Missing five to seven payments, the penalty is 2%.
• Missing eight to ten payments, the penalty is 3%.
• Missing eleven or more payments, penalties of 4% apply

For CIS, if a contractor fails to submit the monthly return on time the following penalties are applied:

• 1 day late – £100
• 2 months late – £200
• 6 months late – £300 or 5% of the CIS deductions (whichever is higher)
• 12 months late – £300 or 5% of the CIS deductions (whichever is higher)
• Over 12 months late – potentially an additional £3,000 or 100% of the CIS deductions (whichever is higher)

Form P11D and annual reporting of benefits, loans and expenses

Deadline

Form P11D, together with the employer’s National Insurance Contributions (NICs) declaration form P11D(b) must be filed with HMRC by 6th July following the end of the tax year.
Payment of Class 1A NICs on benefits is due to HMRC by the 19th July by cheque or 22nd July electronically.

Penalties

Non-submission or overdue: £100 per every 50 employees (or part of 50) per month or part month.

Late payment of Class 1A NIC the statutory interest charged immediately from 19 July (22nd if paid electronically)

If you feel like you are in over your head then it’s worth finding an accountant you can trust.
If you want to chat contact me.