Now that you are the director of a company, there are a number of responsibilities that you cannot ignore.
While we work very hard to ensure all your company’s annual reporting requirements are met, Company law makes you responsible for sending various statutory returns to Companies House and HMRC. This means that there are some documents we cannot sign and submit on your behalf.
We have provided a list of the main ones below. Please make yourself familiar with these responsibilities as failure to do so will be followed by a penalty – a list of which we have also provided.
Don’t panic: we don’t like the idea of you getting penalties either, so we provide you with a breakdown of reporting dates in your company’s calendar which can be located online within your No Worries online account. We will also prompt you via email and on the homepage of your online account well before, to ensure all your information is up to date in order to produce your Annual Accounts and calculate your Corporation Tax.
However, we do ask, in order to avoid any penalties that as soon as you receive requests from us for information, to sign and submit documents or to make payments, that you do so immediately. And please, make sure you read any instructions carefully!
* No Worries does submit your company’s Confirmation Statement for you (Once you have responded to the information request sent to you). However, this is another duty Companies House holds the Director directly responsible for so we thought it worth mentioning.
The Penalties
Please note the below penalties are a guide only – depending on the circumstances and the body imposing the fine you may be subject to additional fines such as interest in arrears.
Companies House Late Filing Penalties
- Not more than 1 month £150
- More than 1 month but not more than 3 months £375
- More than 3 months but not more than 6 months £750
- More than 6 months £1,500
*** If the return is late for 2 or more accounting periods, the above penalties are doubled. ***
Failure to complete a Confirmation Statement:
Within 6 months of its annual expiry will result in a company being struck from the registrar of companies at Companies House.
Companies House take the view that, even though these tasks may have been assigned to other organizations or individuals, final responsibility lies with you, the Director.
Along with an automatic civil penalty, depending on how late they are, if no return or accounts are filed at all, Companies House may also strike the company off the register.
Failing to file accounts or the annual confirmation statement on time, or not at all, is also a criminal offence. If you are prosecuted and convicted you could end up with a criminal record and a fine of up to £5,000. You may also be disqualified from acting as a director.
HMRC Late Filing Penalties
You’ll have to pay penalties if you do not file your Company Tax Return by the deadline.
| Time after your deadline | Penalty |
| 1 day | £100 ** |
| 3 months | Another £100 ** |
| 6 months | HM Revenue and Customs (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 company tax return is late 3 times in a row, the £100 penalties are increased to £500 each.
HMRC Late Payment Penalties
In addition at paying a penalty for late filing of your company tax return with the HMRC, you will also face late payment interest. This is applied to any corporation tax that is paid late from the due date until paid. You may also have to pay a penalty, although there is no set amount.
Late interest is charged at the Bank of England base rate + 2.5%.
If this is your first year of trading or you have changed your accounting period, the situation may be different. Remember that any attempt to evade corporation tax could lead to large fines and even criminal prosecution for those individuals responsible for the business, such as company directors.
Prosecution
Directors (and other officers) can also be personally prosecuted in the criminal courts if they neglect to file accounts. Although possible, prosecution is unlikely for a one-off offence, but Companies House does pursue repeat offenders. The criminal fines can be significant, as the magistrates can impose an unlimited fine, plus a daily default fine. In cases of persistent offending, directors can be disqualified, and the company wound up in the public interest.