New Penalty Regime for Companies - December 2007
A new penalty regime is due to be introduced for accounts delivered late on or after the 1st February 2009.
Not only are the penalties increased, the new regime has been designed to discourage serial offenders, with double penalties being charged if accounts are filed late in two successive years.
Current Penalties
| Not more than 3 months late | £100 |
| 3-6 months late | £250 |
| 6-12 months late | £500 |
| More than 12 months late | £1,000 |
Proposed New Penalties
| Not more than 1 month | £150 |
| 1-3 months | £375 |
| 3-6 Months | £750 |
| More than 6 months | £1,500 |
Example of potential penalties under new regime:
- Year 1 - file 1 week late: Penalty of £150
- Year 2 - file 5 weeks late: Penalty of £750 (1-3 months late, doubled due to second successive year)
- Year 3 - file 1 week late again: Penalty of £300 (up to one month late, doubled due to successive year)
- Total fines over three years: £1,200
- This is £900 extra over the £300 penalties which would be issued under the current regime
As mentioned, although these changes are not due to be introduced until February 2009, this will affect accounts years ended 30th April 2008, so planning and organisation regarding your books and records should begin now!
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