Wisteria Accountants

Each year, it is the responsibility of the directors of each Company (or where applicable, the Company Secretary) to submit yearly accounts and a full annual return to Companies House.

Each year, the company will be sent yearly reminders regarding the date on which these requirements are due and it is the director’s duty to comply with these. If not, then there is a chance of being fined or punished in another way.

In the past few months, Companies House has become much tougher with those companies that file their annual returns beyond their allotted time. Their policy is now to threaten to strike off the company much earlier than they would have done in the past.

As it stands, Companies House imposes the following fines on companies that fail to file their accounts on time. These can range from £150-£1,500 for a private company and from £750-£7,500 for a public company. If the company continually files late accounts, then these penalties are likely to be double by Companies House. Companies House also entitles each company a time of 30 days post the due date (which is the date on which the company was formed) to file the annual return whilst allowing a total of 9 months for the company to file their annual accounts. If a company fails to do so, then Companies House will strike off the company from their official records.

Even if your company is declared dormant (which is defined as a company that in legal terms does not have any accounting transactions throughout the financial year) it is still a requirement of Companies House that you file you end of year accounts. This comes in the form a Dormant Company Filing Requirement which is a Dormant Company Accounts or DCA. These are fairly simple accounts as they simple show the assets and shares of a company. However as soon the firm becomes active and trading, then the company will be required to start filing normal to Companies House.

Another part of owning a company is that you will no doubt have to complete a Self Assessment Tax Returns form. The purpose of a Self Assessment Tax Return is to provide details to HMRC about your income and capital gains on the tax return, or claim tax allowances or reliefs. This can be either done by paper or online depending on your preference. Not everybody is required to complete one of these as it depends on the complexity of your tax affairs. If you are required to file one each year, again like the annual returns and year end accounts, if you fail to stick to the deadlines given, then you are liable to face harsh penalties set by HMRC, up to a maximum of £60 per day.

This is why it is always essential that you keep on top of your companies affairs, finances and accounts to ensure that you do not run the risk of facing heavy penalties or maybe even worse, losing your business altogether.

If you and your business require assistance with your year end accounts to your annual returns, or would simply like to find out more detail about how Wisteria Limited could help, then please feel free to visit www.wisteria.co.uk. Alternatively, you can contact us on 0230 8952 0140 or email us on info@wisteria.co.uk.