Updates to Companies Act 2006
| The onset of recession this year has given Britain's small business sector a great deal to think about. This plus other changes to the UK's taxation system, including a new rate of VAT and an update to the self-assessment tax returns system. But small businesses - specifically limited companies - should not overlook the importance of one other major change. From February 1st, a new range of penalties were introduced under section 453 of the Companies Act 2006. |
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All limited companies are required to deliver their annual accounts to the Registrar of Companies by their specified due date. While Companies House has provided a good deal of information on the changes in regulations, all firms which require further advice should consult an accountant.
According to the new guidelines, private firms filing less than a month past their due date will attract a £150 penalty; those submitting before three months overdue will be liable for a £375 fine; while any submission up to six months overdue will be subject to a £750 charge. Businesses that neglect to file their accounts with Companies House for more than six months after the due date will be given a £1,500 penalty.
Public limited companies are liable for significantly more, as the penalty bracket begins at £750 and staggers up to £7,500 for businesses which do not file their accounts within six months of their due date.
Small business owners should also keep in mind that the new regulations apply to all late accounts, regardless of whether they became overdue before or after February 1st 2009. Despite the tough nature of the penalties, Companies House has provided some valuable information on how to best comply with the changes.
It stated: "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."
The body was also quick to advise business managers or owners to utilise its Software Filing and WebFiling platforms, which can be found on Companies House's website. One of the benefits of this is that an email acknowledgement will be seen out electronically.
In spite of the challenging economic climate - which has given small businesses plenty to contend with - firms should remember to take on board these changes to the Companies Act.
How we can help
These changes may have impacted on your business already and if you would like to speak to a TaxAssist Accountant then please call 0800 0523 555 today.
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