24 May How to Appeal Against Companies House Late Filing Penalties
Covid has drastically affected small businesses in the UK. For this reason, many are unable to do their normal tax filings on time. To make the process easy, HMRC has offered a delay for certain filings and appeals. However, still, there are a lot of other dates and penalties that remained the same. Consequently, many companies are toiling to meet the deadlines this year. In this short blog, we’ll discuss how to appeal against companies house late filing penalties.
Read on to find out!
Companies House Late Filing Penalties:
As a company, you need to file your annual accounts to companies house. If you’re unable to meet the deadlines, you’d be charged a penalty automatically.
The timeline to file your company’s accounts depends on whether you’re filing them for the first time or they are your subsequent account filings.
If you’re a private company owner and your first accounts cover more than a year, you need to send them to the companies house within 21 months of registration or three months from your accounting reference date, whichever takes more time.
After the first year, a company is obliged to file within nine months of its year-end (accounting reference period).
The penalties for late filing start from £150 to a whooping £1500 based on the period. These penalties will be doubled if a company files its accounts late for two consecutive years. The following table will show you companies house annual late filing penalties:
If you face any exceptional or unforeseen event, you can ask companies house for a delay before the deadline.
Contact our Limited Company Accountants for further help!
How to Appeal Against Late Filings Penalties?
Contrary to other types of penalties that the government charge, like tax penalties, you can’t find a tribunal to appeal for late filing on accounts even if you have a solid reason for it. As per the law, you can’t avoid the penalty if you miss out the deadline. The only way to appeal to CH for avoiding a late penalty is to ask it to use its limited discretion to exempt penalty.
Senseless Arguments that are not Acceptable:
As per the law, Companies House is not allowed to consider few arguments no matter how well they are presented. The common reasons for delay include postal disruption, dependence on the accountant for filings and sudden illness or even the demise of a director responsible for filing accounts.
Here are a few tips to follow for appealing against late filing penalties:
1) You should first need to read the Late filings appeal manual, published by the CA to find out the ineligible reasons for appeals. We recommend you to read this manual beforehand to save your time and money. If your reason is ineligible for the appeal, you should warmly bear it instead of wasting your valuable time and efforts on sending the appeal. If your reason is not listed in the ineligible list, you should appeal.
2) The manual contains some scenarios where your appeal would be accepted, like a significant computer breakdown within the five working days of the date of the filing.
3) In case if your appeal is rejected by the CH, you don’t need to be worried. There are two options available for you to take. The first one is contacting the Senior Casework Unit (SCU) at CH to assess your case. Second, you can ask Independent Adjudicators of CH to review your case if SCU at CH upholds the penalty.
Get our help to appeal against late filings!
If your company is dormant or inactive and you have received a penalty notice from the CH, you can avoid the penalty. You just need to apply to a company struck-off to dodge the penalty.
Quick Sum Up:
So, you have understood the process to appeal against companies house late filing penalties. You can appeal here online by using the government website. Remember that after receiving the penalty notice, you need to appeal within 30 days. If your business is affected by the coronavirus, you can visit the government website to find out the relaxation and delays provided.
For further help, feel free to contact us for guidance.
Disclaimer: The content on our website is just for your general understanding.