Rejected Accounts: 14 day statutory extension period abolished

Since 2003, under the Companies Act 1985, if a company delivered incorrectly completed annual accounts to Companies House (on time) the company would be given a 14 day period in which to amend the accounts and file the correct documentation. This concession was an essential facility to companies where the accounts had been filed very close to, or on the date they were due and therefore when re-filed they would effectively fall into one of the penalty bands.

The Companies Act 2006 does not make provision for any similar rule and therefore from the 1st October 2009 the 14 day extension was removed. Any accounts delivered after the 1st October 2009 will not be entitled to the 14 day statutory extension and incorrectly filed accounts will be rejected and if re-submitted after the due date will be classified as late and potentially liable for a financial penalty (subject to any separate agreement that the company may have with Companies House (at their discretion) to permit late filing of the accounts on that occasion).

It is essential that companies no longer leave the filing of company accounts to the last minute. Company accounts should be submitted with plenty of time available such that if they are rejected there is time to re-submit them within the prescribed time period.

Fines for the late filing of accounts are currently (taken from the Companies House website):

Should a company file the accounts late for two successive financial years that begin on or after 6th April 2008 then the late filing penalty imposed will be doubled.