Tips
July 10, 2023
  •  
4 Minutes

How to Deal with Overdue Statutory Accounts to Avoid Penalties

Mike Crocker
Co-founder

Running a small business is no easy feat. One of the biggest challenges SMEs face is ensuring that statutory accounts are filed on time. Late filing can lead to hefty fines and even potential legal action, so it's important to stay on top of this task. But if you're already behind, what should you do? Read on for tips on how to deal with overdue accounts.

Understand the consequences of late filing

When it comes to filing your company’s statutory accounts, it’s important that you understand the consequences of failing to meet the deadlines set by Companies House or HM Revenue & Customs (HMRC). Late filing penalties can be as much as £1,500 per company and up to £7,500 in certain circumstances. Ignoring statutory account deadlines can also result in further legal action if they remain outstanding for too long - leading to prosecution and disqualification from taking part in any management role within a limited company. Understanding the consequences will help motivate you to take action sooner rather than later.

Hire an accountant

If you don’t have an accountant already, hiring one is a great way to get help with overdue accounts and ensure that everything is filed correctly and promptly. An experienced accountant will be able to identify any errors or omissions in your financial records that may have caused delays or other problems with filing your accounts on time. They will also provide expert advice on best practices for staying compliant with current regulations - helping you avoid future costly mistakes.                                                                                      

File as soon as possible

Once you hire an accountant, they will be able to advise when and how best to file your overdue accounts - but generally speaking, it’s always best practice to file as soon as possible in order minimize any potential penalties or legal actions against your company. Your accountant should also be able to provide assistance with any additional paperwork required before submitting your accounts, such as forms for confirmation statements or tax returns depending on the type of business structure you have chosen.

Filing overdue statutory accounts can seem daunting but there's plenty of help out there if you know where look - start by understanding the consequences of late filing and then hire an experienced accountant who specializes in dealing with these types of issues. Your accountant should be able to guide you through the process step-by-step and ensure everything is filed correctly and promptly so that you can stay compliant with all applicable regulations - minimizing the risk of hefty fines or other legal action against your business in the future!

How can Gravitate Accounting help!

We have experienced staff that can communicate with HMRC and Companies House, we will work with you to make sure all future accounts are submitted on time and get you on sure footing so you can focus on running your businesses knowing we have the compliance in hand!

Mike Crocker
Linkedin

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