What will happen if a limited company doesn't file an annual return or accounts? I know Companies House will issue a fine but what happens if they still do not submit a return or accounts?
There's a good chance that the company will eventually get struck off, although it is possible HMRC may object to it if they think tax is outstanding. Do the directors wish to dissolve the company?
It's a criminal offence not to file an annual return, and can result in a fine of up to £5000
In practice the most likely outcome is that the Company will be struck off and no further action taken.
Not filing annual accounts is a civil offence and Co House will impose a penalty of £150 which they will increase gradually to £1500 once its 6 months late.
In the second scenario Co House will pass the debt onto an external debt collector. If you inform Co House that you are dissolving the Company prior to them passing the debt on, they will take no further action, as long as you then dissolve it.
HMRC will also impose penalties for late filing of accounts. (£100 + £100 after 3 months late with further penalties after 18 months late.
I know someone who had their company struck off but they had continued trading as they 'didnt know' - they blamed their Accountant for not filing it. HMRC didnt pick up on it ( as they usually do!), so there were a few interesting threatening letters that came the Directors way but only about 3months after they had set up a newco and registered that company for VAT. No idea why the Accountants didnt ask for the old one to be re-instated (cost and hassle probably). Accountants wrote to HMRC and basically told them to get lost for any of the old company debt!
Before my time I hasten to add!!!!!!!!!!!!!!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
