Late filing penalties were first introduced in 1992 to encourage directors of limited companies to file their accounts on time.

Changes are being introduced to the penalty amounts and structure – These will come into effect from 1st February 2009.

Changes:

 - All penalties to be increased to take account of inflation between 1992 and 2007.

 - A faster rate of increase in penalties for companies who file more than one month late.

 - A doubling of the penalty for any company which files late having also filed late in the previous year.

The new penalties are as follows (all for Private Limited Companies):

 - Not more than one month late - £150

 - Between one and three months late – £375

 - Between three and six months late – £750

 - More than six months late – £1,500

These penalties DO apply to flat management and dormant companies. If the penalty is not paid, it will be referred to a debt collection agent. If it remains unpaid, legal action may be taken which could result in a County Court judgement against your company.

Please contact Humphrey & Co if you have any queries whatsoever.