Reduce Companies House late filing penalties for small businesses
Introduce bands for Companies House late filing penalties, according to company turnover (or net profit).
The levels introduced in February 2009 are extremely harsh for small companies.
Why does this idea matter?
To prevent small companies from 'giving up' when accounts are filed late (which is sometimes an unavoidable in difficult circumstances).
Last year I faced (and paid) a penalty of £750 for my accounts being filed between 3 and 6 months late (due to trying to run a company with a very young family). My company's turnover for the year in question was just under £30k. The same penalty would have been levied for a company with a turnover 100 time that of mine, and the penalty for a massive PLC would have been only 4 times this.
The fine was a heavy blow to me financially and I came very close to giving up the business entirely as a result.