Companies House Penalties: Everything You Need to Know

Running a business can be exciting. But let's be honest- it's also stressful. Between juggling clients, trying to grow your business, and managing finances, staying compliant with Companies House requirements can sometimes feel impossible.

The good news is that most penalties are completely avoidable.
From filing errors to missed deadlines, let’s break down everything you need to know about Companies House penalties and how to avoid them.

How do Companies House penalties work?

There are several different types of penalties that Companies House has for different offences.

All offences and penalties are thoroughly explained in the Companies Act 2006, which serves as the basis for all legislation governing companies in the UK.

Here are the basics of penalties you can get from Companies House:

The type of penalty

According to the Companies Act, there are three types of penalties you can get:

• A fixed penalty - a set amount based on the severity of the offence and previous conduct
• A daily rate penalty - a daily penalty for each new day the offence continues
• A combination of a fixed and a daily rate penalty.

The warning notice

Before you receive your penalty notice, chances are you’ll find a warning notice at your registered office address. This warning serves as an alert to business owners, drawing their attention to the possible breach of the law.

In an official warning notice, you’ll find:

• An explanation of the suspected offence
• A period of 28 days to correct the offence or make a representation to explain your conduct
• Instructions on where and how to file the appropriate documents
• A clear warning that if you do not comply by the end of the given period, there will be a financial penalty.

If you’ve received a warning notice, don’t put it off. Make sure to respond quickly, and you won’t be fined.

Receiving a penalty notice

If you fail to fulfil the conditions laid out in the warning for any reason, you will receive a penalty.

Penalties are automatically issued to your registered office address in full writing and describe:

• The legal grounds for issuing the penalty
• The type of penalty
• How the penalty is calculated
• The amount of the financial penalty
• How to pay
• The period within which you must pay
• Your appeal rights
• The consequences of not paying.

If you’ve received a warning or penalty, you’re not alone. They’re more common than you think, so let’s take a look at some penalties that are most often issued.

What are the most common Companies House penalties?

Nearly every new business owner has come face-to-face with at least one warning or penalty after registering their business. The most common offence is being late with your annual report, but there are also penalties for filing inaccurate information or not maintaining proper company registers.

Late Filing Penalties

You probably already know that all businesses must file their reports and accounts once a year with Companies House. If you miss the deadline, an automated system issues fines based on how late the filing is and whether it’s a repeat offence. A first slip-up might be manageable, but repeated delays can quickly see penalties double.

Here’s how late filing penalties add up, depending on how long you miss the deadline and whether it’s a repeat offence.

If you fail to pay the fine or keep being late on your reports, you could face criminal charges, since not filing your reports is a criminal offence in the UK. Your company could also be struck off the company registrar, so you should never slack off on your reports.

Don’t miss a deadline again with ANNA

It’s often the simplest of things that cause us the most headaches. Deadlines are no exception, as the most common cause of financial penalties is simply failing to file documents on time. And we get it - with so many responsibilities to juggle as a business owner, keeping track of annual accounts can slip through the cracks. If you can relate, don’t worry. ANNA can help you stay on track with everything, from taxes to cash flow, so you never miss a deadline again.

Non-compliance penalties

Companies House has the power to penalise companies that aren’t compliant with current legislation. Some of the most common pitfalls that lead to non-compliance penalties are outlined below.

1. Not filing confirmation statements

Confirmation statements are documents that confirm that the company’s official records and Companies House information match perfectly. The confirmation statements must include the company address and contact info, the names of shareholders and their share capital, a list of all people with significant control, and all other relevant information.

Not filing these statements can cause financial penalties and even criminal liability for directors.

2. Filing inaccurate information

If you submit misleading or inaccurate accounts of your company’s financial position, such as shareholder equity or your assets and profits, the consequences can be severe. If you’ve made a genuine mistake, you can probably appeal and go on without a scratch. However, if you’re intentionally falsifying information, this is considered fraud and can lead to criminal prosecution, including imprisonment.

3. Not maintaining proper company registers

Maintaining your company registers does more than keep your internal company structure organised. You’re required by UK law to maintain official registers of shareholders, company directors, PSCs, and other relevant entities. If you fail to keep these records up to date, you will be issued penalties by Companies House.

Why do financial penalties occur?

The most common causes of penalties aren’t intentional misconduct, but genuine mistakes. Naturally, no one wants to get fined for overlooking a document or mixing up their dates. We’ll outline the most common reasons people get fines, so you can confidently avoid them.

1. Incomplete or incorrect information

Companies House expects precision - this is to ensure that you and your customers are protected. But no matter how useful that expectation is, minor mistakes can result in warnings and penalties. Make sure you’re always up to date on your company information to avoid any trouble.

2. A relaxed approach

No one wants to be stressed out and worried constantly. But in business, it pays off to have a cautious approach. If you’re a new business owner, you might underestimate how strict Companies House rules are. So if you don’t want an unpleasant surprise in the mailbox, be prepared to learn about laws and your obligations as a director, and don’t get too lax.

3. Getting tangled in administration

Even large, longstanding companies can get fines due to jumbled internal administration. Miscommunication, inefficient processes, or improper checks lead to oversights that can cause a penalty.

How do penalties affect my business?

Companies House penalties don’t just impact your business financially. There are more long-lasting consequences of conducting your business in a non-compliant way.

Reputational damage

Because everything you file to Companies House is public information, potential clients can see if you’re repeatedly late. This makes your company come off as unserious and poorly managed, which hurts your relationships with suppliers, investors, and potential clients.

Legal consequences

If you’re constantly non-compliant, you may experience legal consequences. You could face disqualification for up to 15 years, company strike-off, or you may be forced to dissolve your company altogether.

How to avoid Companies House penalties?

Once you understand how penalties work and put the right systems in place, avoiding them becomes a breeze. Here are our best tips on how to stay compliant with Companies House:

✅Don’t mix up your dates

Regularly check your deadlines for annual accounts, confirmation statements, and other filings. Set up calendar reminders so you never miss an important date. And if you don’t want to set anything up, ANNA can file everything for you effortlessly and accurately.

✅Know what’s happening on the inside

If you have a team, make sure you assign responsibilities to every member. Regularly check in with whoever you choose to file your reports to catch any errors.

✅Maintain accurate records

Keep your business information, such as director details, office address, and shareholder information, updated at all times. Whatever changes you make, as small as your address changing or as big as changes in company shares, inform Companies House immediately. Maintaining accurate records will save you a lot of financial and legal trouble.

✅Keep up with the changes

Companies House rules constantly change. That’s why it’s important to stay informed on new legislation. Regularly reviewing updates ensures that your company doesn’t miss new filing requirements, deadlines, or compliance standards.

Combine organisation, proactive record-keeping, and learning, and be the perfect director you can be.

What to do if you receive a penalty

If you get a penalty notice, don’t panic. Act quickly to limit the damage:

1. Review the notice – Check the fine amount, deadline, and reason for the penalty.
2. Pay promptly – If the fine is valid, pay on time to avoid further action.
3. Fix the issue – Submit missing documents or correct errors straight away.
4. Appeal if needed – If you believe the penalty is unfair, gather evidence and follow the official appeal process.

How ANNA can help you avoid Companies House penalties

Staying on top of everything can be stressful - unless you have ANNA. ANNA isn’t just your everyday business account. It’s the most efficient and accurate business assistant that works around the clock. No more worrying about deadlines and Companies House penalties, you can just focus on what matters instead.

Here’s how ANNA helps:

• Reminders: Never miss a deadline again. ANNA sends alerts for annual accounts, confirmation statements, and other key filings.
• Manage your documents: Keep all your company paperwork in one secure place, making it easy to review, update, and submit on time.
• 24/7 support: Access advice on compliance, tax requirements, and filing procedures, ensuring you submit accurate and complete documents.
• Bookkeeping: Easily share records with your accountant or bookkeeper to streamline submissions and reduce errors.

With ANNA, business means less stress and more freedom to focus on what matters to you.