Pictured: Ian Holder
More and more companies are being hit by hefty fines for falling
down on their Companies House filing responsibilities - with HMRC
netting nearly £100 million in the last financial year.
Now Ian Holder, partner in the Birmingham office of
international accountancy firm Mazars, has urged them to improve
their housekeeping and get company accounts in on time.
While the majority of fines are for late submission of accounts,
fines can also be issued for late delivery of annual returns.
Annual returns are designed to gather in company information
including company secretary and directors, registered office
address, shareholders and share capital.
The Companies House 2010/11 annual report revealed that late
filing penalties totalled £99.4 million against £68.6
million the previous year.
"That is a staggering increase and is costing businesses dear,"
said Mr Holder.
"Annual filing may seem an onerous and bureaucratic exercise.
But it is important and companies ignore or overlook it at their
peril. The problem may simply be an administrative failure but it
is proving to be an expensive one.
"Anyone who does not understand their responsibilities should
take advice from an expert."
If documents are delivered late, Companies House also has the
power to prosecute directors and secretaries. A conviction would
mean a criminal record, and possibly a fine of up to
£5,000.
If no return or accounts are filed at all, Companies House may
also strike the company off the register. In which case, any assets
become the property of the Crown.
Mr Holder said filing penalties for late submission of accounts
ranged from £150 for a private company just one month over,
£750 for a plc, to £1,500 and £7,500 respectively
for going past six months.
In addition where there was a failure to comply with filing
requirements in relation to the previous financial year, the
penalty doubles.
He said: "Companies need to keep their eye on the ball. These
are difficult economic times and firms can ill-afford to make such
elementary mistakes. These are basic responsibilities and
management should ensure they are not forgotten."
During the year to March 31, Companies House prosecuted and
convicted 1,904 directors for failure to file either an annual
return or set of accounts on time.