Other Important Issues - Filing of Returns

Please note that these rules also apply to Limited Liability Partnerships.

Accounts

All private companies must file accounts with Companies House within 9 months of the accounting reference date, but it must be remembered that the maximum period allowed for a company's first accounts is 21 months from the incorporation date. This may reduce the usual 9 month period if the first accounting period is extended beyond twelve months. Beware that the 21 month rule applies from the incorporation date itself, not the ARD. This rule often catches out uninformed directors who expect to file their accounts by the end of the 21st month.

Example:

• A company is incorporated on 12th May 2009. It extends its accounting reference date of 31st October so its first accounts will cover the period from incorporation to 31st October 2010.


• The first accounts must be filed by 12th February 2011– 21 months from the date of incorporation.


• The second financial year will end on 31st October 2011, and accounts for this period will have to be filed by 31st August 2012– 9 months from the last ARD.

There are automatic financial penalties imposed by Companies House in respect of late filing of accounts. Such fines can be as high as £1500 in extreme cases, and our experience shows that it is virtually impossible to defend against these penalties once they have been imposed.

At present, companies with a turnover not exceeding £5.6m per annum do not need to appoint auditors or produce fully audited accounts.

Annual Returns

In addition to accounts, every company must also file an Annual Return AR01 (from 1 October 2009 - replacing the old Form 363) with Companies House each year. The date of the Annual Return is each anniversary of the date of incorporation.

Companies House no longer provides a “shuttle return” service whereby your Annual Return was sent to the registered office in advance of the return date. The responsibility to file the form on time rests with the Directors and it is a criminal offence to delay the filing of this document. Company Registrations Online provides a comprehensive Managed Compliance Service that will assist in the annual preparation of your Annual Return, ensuring it is correctly competed and filed on time. We would urge you to consider this facility so as to ensure that your routine filings are always up to date.

Click here for more information about our Managed Compliance Service