Annual Company Filings – A Legal Requirement for All UK Companies

Why Every UK Company Must File Annual Returns – Even When Not Trading

If you own a UK limited company, whether it is actively trading or lying dormant, you have a legal obligation to file statutory documents with Companies House every year. Many business owners mistakenly believe that if their company is not trading, they can simply "pause" their filing obligations. This is incorrect and can lead to serious consequences, including penalties and the involuntary dissolution of your company.

At Barnett & Co Accountants in Crewe, we regularly assist clients with their statutory compliance obligations, and one of the most common questions we encounter is: "Do I still need to file if my company isn't trading?" The answer is unequivocally yes.

Understanding Your Statutory Filing Obligations

Under the Companies Act 2006, every company registered in the United Kingdom must submit two key documents to Companies House annually:

1. Annual Accounts Every company, regardless of trading status, must prepare and file annual accounts. For dormant companies (those with no significant accounting transactions during the financial year), you will file dormant company accounts, which are considerably simpler than full trading accounts. However, the filing obligation remains absolute.

2. Confirmation Statement Previously known as the Annual Return, the Confirmation Statement must be filed at least once every 12 months. This document confirms that the information Companies House holds about your company, including registered office address, directors, shareholders, and share capital is accurate and up to date.

What Happens If You Fail to File?

The consequences of missing statutory filing deadlines can be severe:

Financial Penalties

Companies House imposes automatic penalties for late filing of accounts. These penalties escalate based on how late the filing is:

• Up to one month late: £150

• More than one month but not more than three months late: £375

• More than three months but not more than six months late: £750

• More than six months late: £1,500

For public companies, these penalties are significantly higher.

Strike-Off and Dissolution

If your company repeatedly fails to file its statutory documents, Companies House will initiate strike-off proceedings. This means your company will be removed from the register and cease to exist as a legal entity. The ramifications of this include:

• Loss of the company name (which becomes available for others to register)

• Potential personal liability for company debts

• Difficulty resurrecting the company, which requires a complex restoration process

• Negative impact on your director's reputation and credit record

Director Disqualification

In serious cases of non-compliance, directors may face disqualification proceedings, preventing them from acting as a company director for a specified period.

Dormant Companies: Simplified But Not Exempt

If your company is dormant, meaning it has had no significant accounting transactions during the financial year, your filing obligations are simplified but not eliminated. Dormant company accounts are straightforward and typically consist of a simplified balance sheet.

However, you must still:

• Prepare and file dormant accounts annually

• Submit your Confirmation Statement on time

• Maintain your registered office address

• Notify Companies House of any changes to company officers or structure

Many business owners maintain dormant companies for strategic reasons: preserving a valuable company name, holding assets, or keeping a corporate structure available for future use. Maintaining compliance for a dormant company is cost-effective insurance for these valuable assets.

The Importance of Timely Filing

Filing your statutory documents on time demonstrates professional business management and maintains your company's good standing with Companies House. Timely compliance:

• Avoids unnecessary penalties and costs

• Maintains your company's active status

• Preserves your director's reputation

• Ensures public records accurately reflect your company's status

• Facilitates smoother business operations should you need to prove your company's existence for contracts, credit applications, or other purposes

How Barnett & Co Accountants Can Help

At Barnett & Co Accountants, we understand that navigating statutory compliance can be time-consuming and complex, particularly for business owners focused on running their operations. Our comprehensive compliance services include:

• Annual Accounts Preparation and Filing: We prepare accurate, compliant accounts for both trading and dormant companies and file them with Companies House within the required timeframes.

• Confirmation Statement Filing: We manage your annual Confirmation Statement, ensuring all company information is current and accurate.

• Compliance Calendar Management: We maintain a comprehensive calendar of your filing deadlines and provide advance reminders, ensuring you never miss a critical date.

• Dormant Company Administration: We provide cost-effective solutions for maintaining dormant companies, handling all necessary filings whilst your company remains inactive.

• Companies House Liaison: Should any issues arise with Companies House, we handle all correspondence and resolution on your behalf.

Making Tax Digital and Beyond

Beyond basic statutory compliance, we also assist clients with Making Tax Digital for VAT and Income Tax, payroll services, VAT registration, and company formations. As an Authorised Corporate Service Provider (ACSP), we offer comprehensive corporate services including ready-made companies and Companies House identity verification using technology.

Protect Your Business – Stay Compliant

Whether your company is trading profitably, just starting out, temporarily dormant, or winding down operations, your statutory filing obligations remain constant. Non-compliance is never worth the risk when professional assistance is readily available.

If you are uncertain about your filing deadlines, concerned about overdue submissions, or simply want to ensure your company remains compliant without the administrative burden, contact Barnett & Co Accountants today. Based at Electra House, Electra Way, Crewe, we serve businesses throughout Cheshire and beyond.

Call us today to discuss how we can manage your statutory compliance obligations, allowing you to focus on what you do best – running your business.