Companies House Late Filing Penalties

1st February 2009

Late Filing Penalties

Section 441 of the Companies Act 2006 requires all companies to deliver annual accounts to the Registrar of Companies by the due date. Section 453 specifies that a civil administration penalty shall be payable if the accounts are delivered late, and provides for the Secretary of State to specify the level of this penalty through regulations.

To increase the effectiveness of the late filing penalties, when section 453 comes into force Companies House will change the current schedule of late filing penalties as contained in section 242A of the Companies Act 1985. In parallel, the Government will amend section 242A of the 1985 Act so that these changes also apply to accounts prepared under the 1985 Act but delivered late on or after 1st February 2009 when the updated penalties come into force.

What are late filing penalties?

Late filing penalties were introduced in 1992 to encourage directors of limited companies to file their accounts on time because they must provide this statutory information for the public record.

What are the changes being introduced?

• All penalties to be increased to take account of inflation between 1992 and 2007
• A faster rate of increase in penalties for companies who file more than one month late.
• A doubling of the penalty for any company which files late having also filed late in the previous year.

What are the new late filing penalties?

The new table of penalties is a follows: *

How late are the accounts delivered Penalty –Private Company Penalty - PLC
Not more than one month £150 £750
More than one month but not more than three months £375 £1500
More than three months but not more than six months £750 £3000
More than six months £1500 £7500

In addition where there was a failure to comply with filing requirements in relation to the previous financial year (and that the previous financial year had begun on or after 6th April 2008), the penalty will be double that shown in the table.

When do these new penalties apply?

The new penalties will apply from 1st February 2009.

If my accounts are/were already overdue before the 1 February 2009 will the new penalties apply to me?

Regardless of when your accounts became overdue, from the 1st February 2009 the new penalties apply to all accounts delivered late.

How will I know when a penalty is levied?

If accounts are delivered late, an invoice is issued automatically to your registered office address.

Do the penalties apply to flat management and dormant companies?

Yes.

How can I avoid penalties?

Read the filing reminders that Companies House send to your registered office address.
Allow enough time to ensure that your accounts reach the Registrar within the period allowed in the Companies Act. First-class post is not guaranteed so if the filing deadline is looming, then please consider guaranteed methods of delivery that will ensure that your accounts arrive on time. Remember: the Registrar will not waive a penalty if your accounts are delayed in the post.

You can now file certain categories of accounts using our Software Filing or WebFiling services using the Companies House website. If you file your accounts electronically you will benefit from an email acknowledging receipt of your accounts.

What will happen if the penalty is not paid?

The penalty will be referred to collection agents. If it remains unpaid, legal action may be taken which could result in a County Court judgement or a Sheriff Court decree against your company.

Did the Late Filing Penalty changes go for public consultation?

Yes the original proposals went for public consultation on 20th July 2007, and all responses were required by 12th October 2007

Where can I find a copy of the consultation document and the response?

The consultation document and the response are both available on the publications pages of the Companies House website at: http://www.companieshouse.gov.uk/companiesAct/publications.shtml

Copies of the regulations are available on the OPSI website at:http://www.opsi.gov.uk/si/si2008/uksi_20080497_en_1

14 day concession

Section 706 of the Companies Act 1985 required companies to deliver documents in a legible form and allowed 14 days from the date of any rejection letter to re-file them. There is no replacement in the Companies Act 2006 for this section and so it will cease to exist from 1st October 2009. A company will therefore no longer have 14 days from the date of the rejection letter in which to amend and return accounts in an acceptable format.

Do late filing penalties apply to other documents?

Where a company amends its articles of association, a copy of the amended articles must be sent to Companies House within 15 days. Failure to comply is a criminal offence.

From the 1st October 2009, the Companies Act 2006 introduces a new civil penalty of £200 for failure to comply. The penalty will only trigger if a company receives notice from the Registrar requiring it to deliver a copy of its amended articles and it does not comply within 28 days.

The company would remain liable to criminal proceedings in addition to the £200 civil penalty.

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Rates and Allowances - Travel

Using your own vehicle for work - A fact sheet for employees

Many employees who use their own car, van, motor cycle or cycle for work journeys are paid an allowance by their employer to cover some or all of the costs. It can be in the form of a lump sum or periodic payments, but is usually based on a rate per mile.

Provided certain rules are met these payments can be made free of tax and National Insurance contributions.

What payments are included in the scheme?
The only payments which are free of tax are those made to you personally (not those made to someone else on your behalf) for expenses related to your use of your own vehicle for work journeys within a limit fixed by law which is based on your business mileage.

All other payments related to your own vehicle (including those made to someone else on your behalf) are taxed as earnings in the normal way.

The rules for National Insurance are slightly different, but your employer is responsible for working out any amounts which you are entitled to receive without paying NI contributions.

If you are paid an allowance for non-work journeys, the payments are subject to tax and NICs in the usual way and nothing in this factsheet applies to those payments.

Which journeys are ‘work journeys’?
Work journeys are those which you have to make in the course of doing your job. They include, for example, delivering goods or making calls to customers.

Any private journeys unrelated to work are not included. Nor are journeys to and from your usual place of work (commuting journeys), even if you call at a client’s on the way (unless the journey is significantly different from your usual commuting journey).

How are the tax-free amounts calculated?
The maximum you can receive tax-free for a tax year is your mileage on work journeys multiplied by a set rate per mile. There are three kinds of vehicle, and the rate depends on the kind you use - car or van, motor cycle and cycle. You can find the rates at www.hmrc.gov.uk/rates/travel.htm.

What if my actual expenses are more than the tax-free amount?
The tax-free amount is the maximum relief you are entitled to in any tax year, so you are not entitled to any additional relief in that case, whether for interest payments, business insurance, depreciation or any other payments you may have to make on your car.
All such expenses have been taken into account in determining the rates above.

What if I am paid more or less than the tax-free amount?
If you are paid more than the tax-free amount, the excess is taxable as income. Your employer is responsible for advising HMRC of the amount and tax is normally collected via your PAYE tax code. If you receive a tax return, you are responsible for including the same amount on the return.
If you are paid less than the tax-free amount, you are entitled to Mileage Allowance Relief for the amount by which the payments you received fall short. For example, if the maximum is 40p per mile for work journeys in your car and your employer only pays you 36p per mile, you are entitled to additional tax relief of 4p per mile. You can advise HMRC of this by letter, or you can use a form available for the purpose (PDF 97K)

What about payments made for passengers?
You can receive amounts free of both tax and NICs for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less, or nothing at all. You can find the rate at www.hmrc.gov.uk/rates/travel.htm.

What records do I need to keep?
You will need to keep records of your work journeys (date, mileage, details of journey). Your employer will need to know the mileage in order to make any expenses payments to you. You will need them to substantiate your right to any mileage allowance relief, whether or not you do this via a tax return.

What if I use more than one vehicle in the year?
It does not matter how many vehicles of the same kind you use in the year: you are treated as though you had used the same vehicle throughout.
Calculations for vehicles of different kinds (a car and a motor cycle, for example) are kept separate. All excess payments must be reported, even if you are entitled to mileage allowance relief for another kind of vehicle.

What if I travel on business for more than one employment?
If you have two or more employments that are associated then your business travel for both is added together to work out when you are no longer entitled to the higher mileage rate for business mileage in a car or van for that tax year.

Employments are associated if they are

• with the same employer, or
• with different employers who are under the same control, for example, two different companies in the same group of companies.

If the employments are not associated you are entitled to the higher mileage rate for business mileage travelled in each employment as though you did not hold the other employment.
Please note: this fact sheet is for guidance only and reflects the position at the time of writing. Further information can be found at http://www.hmrc.gov.uk/mileage/index.htm.
Version date: December 2005

Income Tax Rates and Allowances

For the latest income tax rates and allowances, please follow this link:

http://www.hmrc.gov.uk/rates/it.htm

How are Dividends Taxed?

To find out more about how your dividends are taxed, please follow this link:

http://www.hmrc.gov.uk/taxon/uk.htm

VAT Application form

Registering for VAT

When you must register for VAT and when you can choose to register

You must register for VAT if your annual sales are £67,000 or above and you may be able to voluntarily register if your sales are under £67,000

Follow this link to download a VAT Application form (VAT1):

http://search2.hmrc.gov.uk/kbroker/hmrc/forms/viewform.jsp?formId=986

Should you require any assistance in completing this form, please contact Cheryl at cheryl@sailsolutions.co.uk

Statutory Maternity Pay (SMP)

Statutory Maternity Pay (SMP)


What is it?

Can I get it?
How long is it paid for?
How much will I get?
How is my SMP worked out?
When does SMP start?


What is it?
SMP provides you with some money to help you to take time off work before and after the birth of your baby.
SMP is paid by your limited company.

Can I get it?
To get SMP you must have been:
Employed by your company into the qualifying week which is the 15th week before the week your baby is due; and
Employed by the same company continuously (some breaks do not interrupt continuity) for at least 26 weeks into the 15th week before the week your baby is due. Part weeks count as full weeks, and
Earning before tax an average of £87.00 a week for tax year 2007/8 and £90.00 a week in 2008/9. This is called the Lower Earnings Limit for National Insurance Contributions (NI) and is the amount you have to earn to qualify for benefits. You have to earn more than this amount before you actually start paying NI.

How long is it paid for?
SMP is paid for a continuous period of up to 39 weeks.

How much will I get?
SMP is paid for:


First 6 weeks
90% of your average weekly earnings with no upper limit.


Remaining 33 weeks
Standard rate or a rate equal to 90% of your average weekly earnings. You will get whichever rate is lower.

The standard rate from 6 April 2008 is £117.18 per week.

SMP is earnings, so your company will deduct income tax and National Insurance contributions.

How is my SMP worked out?
The important date for working out your SMP is the date your baby is due not when your baby is actually born. The week in which your baby is due is referred to as the EWC – expected week of childbirth.
Your companywill look at your gross earnings paid to you in a set period. This is usually the eight week period up to and including the 15th week before your EWC. The period your employer uses may vary depending on how often you are paid –weekly, monthly or other intervals.


When does SMP start?
The earliest date that SMP can start is from the 11th week before the week your baby is due and the latest from the day following the birth.
If you continue to work after the 11th week before the week your baby is due you can choose when you want your SMP to start. SMP will start from any day you choose, once you have stopped work to have your baby. This means that your SMP should start from the first day of your maternity leave.

Remember that this website is only a general guide to benefits and schemes, and is not a full and authoritative statement of the law. We have made every effort to ensure that the information on this website is correct at the date shown on this page. However, changes in the law may make the website become gradually less accurate.


SAIL Business Solutions can help you in applying for advance funding from HMRC and calculate the amount of SMP you are entitled to. Please contact Marise on 020 8 241 3495 or marise@sailsolutions.co.uk should you require assistance in calculation and arranging advance funding of your SMP.