What Are the Penalties for Filing Annual Accounts Late?

Companies House charges an automatic financial penalty the day after your accounts deadline passes, starting at £150 and rising to £1,500 depending on how late you are. There's no warning and no discretion involved. Here's the full penalty structure, and what your options actually are if you're facing one.

Key Takeaways

• Late filing penalties for a private company range from £150 to £1,500, depending on how many months late your accounts are.
• The penalty automatically doubles if you file late in two consecutive financial years.
• Public companies face significantly higher penalties, up to £7,500, or £15,000 if late two years running.
• Failing to file accounts is a criminal offence, separate from the financial penalty, and directors can be personally fined in criminal courts.
• If you're closing the company anyway, dissolving rather than filing overdue accounts is one option, though it doesn't remove the underlying legal exposure of having missed the deadline.

How Much Is the Late Filing Penalty?

For a private company limited by shares, the penalty scales with how late your accounts arrive:

This penalty is automatic and applies from the day after your deadline passes, regardless of the reason for the delay.

Does the Penalty Get Worse if It Happens Again?

Yes. If you file late in two consecutive financial years, the penalty for the second year is automatically doubled. A company that's two months late for a second year running pays £750 instead of £375, for example.

Filing on time resets you back to the standard penalty band the following year, so a single late filing doesn't follow you indefinitely, but two in a row costs considerably more than two isolated ones would.

Are Public Company Penalties Different?

Yes, and significantly higher. Public companies face penalties up to £7,500 for accounts more than six months late, rising to £15,000 if that happens two years in a row.

What Are My Options if My Accounts Are Overdue?

You have two realistic routes: file them and accept, or appeal, the penalty, or close the company instead of filing at all.

• File the accounts and pay the penalty. You can appeal the penalty afterward, though appeals aren't guaranteed to succeed and Companies House applies them narrowly.
• Dissolve the company instead of filing. If you're closing the business anyway and don't intend to keep it running, this avoids the accounts penalty specifically, since Companies House won't chase a penalty for a company that's since been struck off.

It's worth being clear about what dissolving does and doesn't resolve. Failing to file accounts is a criminal offence under the Companies Act 2006, separate from the financial penalty itself, and directors can be personally fined in criminal courts for this. Dissolving the company avoids the automatic accounts penalty, but it doesn't retroactively erase the fact that a filing deadline was missed while the company existed. Our guide to dissolving a limited company covers the process and other restrictions worth knowing about before you go this route.

What if My Company Is Dormant?

Dormant companies aren't exempt from filing deadlines or penalties. The same scale applies to Dormant Company Accounts, so it's worth treating this deadline as seriously as an active company would. Our guide to making a company dormant covers what's still required while your company isn't trading.

FAQs

How much is the penalty for filing accounts one month late?

£150 for a private company. It rises to £375 for 1 to 3 months, £750 for 3 to 6 months, and £1,500 beyond 6 months.

Does the penalty increase if I'm late two years in a row?

Yes, it doubles automatically for the second consecutive late filing. Filing on time resets you back to the standard rate the following year.

Is failing to file accounts a criminal offence?

Yes, separate from the financial penalty. Directors can be personally fined in criminal courts, and this applies even if the automatic penalty has already been paid.

Can I avoid the penalty by closing the company instead of filing?

Dissolving the company instead of filing overdue accounts does avoid the accounts penalty specifically, though it doesn't remove the underlying legal exposure of having missed the deadline while the company existed.

Do dormant companies face the same late filing penalties?

Yes, the same penalty scale applies to Dormant Company Accounts as it does to active companies.

This article is for general information only and does not constitute legal advice. Companies House penalties and processes can change, so it's worth checking current guidance on GOV.UK or Companies House, or speaking to a qualified professional, before making decisions about overdue filings.