Figures from Companies House show the number of private and public limited companies getting penalties for late filing has increased by 23% in four years.
In 2014/15, the number of penalties issued in England and Wales stood at 165,000, with a total value of around £78m. However, in 2017/18, the number had reached 204,000 – with a cost to businesses of around £87m.
Companies are required to report their annual accounts to Companies House as well as HMRC. A late filing penalty (LFP) can be imposed by Companies House under s453 of the Companies Act 2006 (CA 2006). Private Limited Companies can be fined £150, for up to one month after the deadline, to £1,500 for filings six months late. Public Limited Companies can be fined between £750 and £7,500. If a company files late for two consecutive years the penalty amount can be doubled.