What happens if you are late in filing the confirmation statement?
Posted on 29th June 2023 at 09:49
Filing a confirmation statement is an important legal requirement for limited companies and LLPs registered in the UK. It's a document that must be filed with Companies House at least once every 12 months, providing up-to-date information about your business. Even though it's crucial to submit your confirmation statement on time, it's usual to forget about this need for legal filing. As long as you file a statement with Companies House as soon as you can, you won't be subject to any automatic financial penalties for missing the deadline. If you fail to file your confirmation statement on time, there are serious consequences for your company or LLP, both financially and legally.
Here is what happens if you are late filing your confirmation statement:
It is important to note that if your confirmation statement is late, Companies House may send you a warning letter or even take action against you in court. This could result in a criminal conviction and hefty fines.
Financial Penalties- Financial penalties from Companies House are the most immediate consequence of failing to submit a confirmation statement on time. If you miss the deadline by more than 14 days, Companies House will issue a fine of £150 per day until the document has been received. This penalty is capped at £1,500 in total.
Criminal Conviction- In addition to the financial penalties, failing to file a confirmation statement on time could also lead to criminal proceedings against the company's directors and members. The maximum sentence for this offence is two years imprisonment or an unlimited fine (or both).
Loss of Limited Status The most serious consequence of not filing your confirmation statement on time is that Companies House may strike off your company from the register – meaning it will no longer have limited status and become dissolved. If this happens, you won't be able to access any assets the business holds or make claims against third parties who owe money to it.
Dissolution of the company- The most severe consequence of not filing your confirmation statement on time is that it can lead to the dissolution of your company by Companies House. This means that all assets associated with the company will be seized, and any business activities must cease immediately.
It's important to note that your company or LLP can still be struck off even if you pay the financial penalty. This is why filing your confirmation statement as soon as possible is important. If you have missed the deadline for filing your confirmation statement, you should contact Companies House immediately and explain why this has happened. They may waive any fines if they believe there are extenuating circumstances surrounding the delay – such as illness or bereavement.
In conclusion, failing to file a confirmation statement on time can have serious consequences for limited companies and LLPs in the UK, including financial penalties and criminal convictions against their directors and members. Therefore, business owners must take steps to ensure their confirmation statement is filed on time to ensure that their return is always submitted on time to avoid any potential risks and penalties.
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