What this letter usually means
Companies House require every limited company and limited liability partnership to file annual accounts by a set deadline. If those accounts arrive late, an automatic penalty is charged. The letter you have received is most likely that penalty notice, telling you the amount due and the period it relates to.
The key word is automatic. The penalty is applied because the accounts were received after the deadline, regardless of the reason, and the amount depends only on how late they were. This is different from a tax bill. It is not based on profit, turnover or how much tax you owe. It is a flat charge for missing a filing date.
It is important to understand that this penalty is completely separate from HMRC. Companies House and HMRC are different bodies with different deadlines. The Companies House penalty is about your accounts. It has nothing to do with your corporation tax return or your corporation tax bill, which carry their own penalties handled by HMRC.
Who it affects
This penalty applies to private limited companies and to limited liability partnerships that file their accounts late. Public companies face higher penalties, but most small businesses are private companies, so the private company figures are the ones that matter here.
Every company must file accounts each year, even a small one, a dormant one, or one that has not yet started trading. A first set of accounts is usually due a set period after incorporation, and later accounts follow the company financial year. Because the deadline can fall at an awkward time, especially for a first year, it is easy to miss without realising.
The responsibility sits with the company directors, or with the designated members of an LLP. Even if an accountant normally files for you, it is the directors who are accountable for making sure the accounts reach Companies House on time. If you have just formed a company, our guide on company formation explains the filing duties that come with it.
What you must not ignore
The most important thing is not to leave the accounts unfiled. The penalty is fixed at the level for how late you already are, but it keeps stepping up the longer the accounts remain outstanding, so filing them quickly stops the charge from rising.
There is a second consequence that is far more serious than the penalty itself. Failing to file accounts is a criminal offence by the directors, and if accounts are not filed at all, Companies House can begin action to strike the company off the register. A company that is struck off ceases to exist, and its assets can pass to the Crown. This is why ignoring the situation is never a safe option.
Remember too that the confirmation statement is a separate filing from the accounts. It must be filed at least once a year and confirms details such as directors and shareholders. Filing one does not satisfy the other, so check that both are up to date.
What you may need to gather
To deal with the penalty properly and stop it growing, gather these together first.
- The penalty notice, including the reference and the financial year it covers.
- Your company registration number.
- The accounts for the period in question, or the figures needed to finish them.
- The filing deadline that was missed, so you can confirm how late the accounts are.
- Records of any earlier late filing, since filing late two years running doubles the penalty.
- Any evidence of exceptional circumstances, if you believe an appeal might apply.
If the accounts themselves are not finished, completing and filing them is the priority, because that is what stops further escalation. Our page on limited company accounts sets out what the accounts must contain and how they are filed.
What to do, step by step
Take these steps in order to keep the cost down and protect the company.
- Read the notice and confirm the financial year and the deadline that was missed.
- Check whether the accounts have been filed. If they are still outstanding, this is the urgent job.
- Prepare and file the accounts as quickly as possible, because the penalty band depends on how late they are.
- Pay the penalty by the date shown, or contact Companies House if you cannot pay in one go to ask about an instalment arrangement.
- Check your other filings, including the confirmation statement and your HMRC corporation tax return, so nothing else is overdue.
- Consider an appeal only if you have genuinely exceptional circumstances, which we explain below.
If this feels overwhelming, you do not have to manage it alone. You can book a call and we will help you get the accounts filed and the penalty dealt with.
A worked example
The private company penalty ladder works in bands. Accounts up to one month late carry a penalty of one hundred and fifty pounds. More than one month but not more than three months is three hundred and seventy five pounds. More than three but not more than six months is seven hundred and fifty pounds. More than six months is one thousand five hundred pounds. The penalty is doubled if accounts are filed late in two successive financial years.
A private company files four months late
Hartley Design Limited had an accounts filing deadline of 30 September 2026. The director was unwell and the accounts were finally filed on 28 January 2027, which is four months late. That falls in the band for more than three but not more than six months, so the penalty is seven hundred and fifty pounds. The company pays it and moves on. Now imagine the same thing happens the following year and the next set of accounts is also four months late. Because the company has filed late in two successive financial years, the seven hundred and fifty pound penalty is doubled to one thousand five hundred pounds. The message is clear. Filing even a little earlier moves you into a lower band, and avoiding a second late year prevents the doubling altogether.
When to speak to an accountant
If your accounts are simply late and you can finish and file them, the path is straightforward. There are times, though, when professional help is well worth it. If you are struggling to prepare the accounts, if you have been late before and risk the doubling, or if you have received warnings about being struck off, getting support quickly can make a real difference.
Appeals against a Companies House penalty are only successful in exceptional cases, such as a serious illness or an event genuinely outside your control, and a routine reason like being busy will not succeed. An accountant can tell you honestly whether an appeal stands any chance, and can otherwise focus on getting the accounts filed and your filings back in order. Because the Companies House penalty often arrives alongside HMRC charges, it is worth reading our page on corporation tax penalties too. When you would like us to take it on, you can request a fixed fee quote.
A clear guide to the penalty Companies House charge for filing your annual accounts late, how much it is, and what to do about it.
Frequently asked questions
How much is the Companies House late filing penalty?
For a private company or LLP it is one hundred and fifty pounds if up to one month late, three hundred and seventy five pounds if more than one month but not more than three, seven hundred and fifty pounds if more than three but not more than six, and one thousand five hundred pounds if more than six months late. Public companies pay more.
Is the penalty really doubled for being late two years running?
Yes. If your accounts are filed late in two successive financial years, the penalty for the second year is doubled. So a seven hundred and fifty pound penalty would become one thousand five hundred pounds. Avoiding a second consecutive late year is the simplest way to prevent this.
Is this the same as a corporation tax penalty from HMRC?
No. The Companies House penalty is for filing your accounts late and is completely separate from HMRC. HMRC charge their own penalties for a late company tax return and unpaid corporation tax. The two are different bodies with different deadlines, so you can face both at the same time.
Can my company be struck off for not filing accounts?
Yes. Not filing accounts is a criminal offence by the directors, and Companies House can take steps to strike the company off the register if accounts are not delivered. A struck off company stops existing and its assets can pass to the Crown. This is why you should never leave accounts unfiled.
Can I appeal the penalty?
Appeals only succeed in exceptional circumstances that were genuinely outside your control, such as a serious unexpected illness. Everyday reasons like pressure of work, relying on someone else, or not knowing the deadline are not accepted. We can give you an honest view of whether an appeal is likely to work.
What about the confirmation statement?
The confirmation statement is a separate filing from your accounts and must be made at least once a year. It confirms company details such as directors and shareholders. Filing your accounts does not cover it, and missing it can lead to further action, so make sure both are kept up to date.