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Accountant's anger at new filing penalties
A West Yorkshire tax adviser has hit out at the government’s decision to introduce new penalties for the late filing of accounts at Companies House, at a time when many businesses are struggling for cash.
Ripponden resident John Kinsella – a partner at Bradford accountancy firm Watson Buckle – said the new charges had gone beyond a simple deterrent, and were now at a level that could prove a real problem to a struggling firm.
The changes – introduced in February this year – saw all penalties increased in line with inflation, but with a faster rate of increase for companies who file more than a month late, and a doubling of the penalty for any company which files late having also filed late in a previous year.
The penalty for filing accounts up to one month late has increased from £100 to £150, but for delays of more than six months, it has risen from £500 (or £1,000 for delays of over a year) to £1,500.
Mr Kinsella said: “Of course, Companies House needs to ensure people do pay what they owe, but they are showing no flexibility, with charges levied even if returns are filed just one day late.
“It is ironic that these new harder rules and tougher penalties are being bought in as businesses struggle with cash flow issues. The government should be looking to help firms who are genuinely struggling to keep their heads above water, not hitting them with these draconian penalties.”
For more information, contact Watson Buckle on 01274 516700 or visit www.watsonbuckle.co.uk