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Companies House

Answer

Companies House does not fine companies. Companies automatically incur a civil penalty if they file their accounts after the filing deadline laid down in legislation. The civil penalties are laid down by Parliament in regulations made under the Companies Act 2006; the legislation lays the duty to collect the penalties on the Registrar of Companies. All moneys raised from civil penalties are paid into the Treasury’s consolidated fund and not retained by Companies House.

After the Companies Act 2006 came into effect, Companies House, on behalf of the Government, carried out a consultation on civil penalties for the late filing of accounts. The consultation was made on the basis of the following proposals. (i) All penalties to be increased to take account of inflation between 1992 and 2007. (ii) A faster rate of increase in penalties for companies which file more than one month late. (iii) A doubling of the penalty for any company which files late having also filed late the previous year.

Companies House received 26 responses to this consultation, and were a mix of positive and negative responses to the questions. Following advice from its then parent department, the Department for Business, Enterprise and Regulatory Reform, the responses were anonymised. The proposals were later made law by regulations made under the Companies Act 2006.

Twelve representations on civil penalties have also been made under the Government’s Red Tape Challenge, and are also a mix of positive and negative responses. The representations are made by individuals rather than organisations and the details can be found on the Red Tape Challenge website at: http://www.redtape challenge.cabinetoffice.gov.uk/themehome/company-commercial-law/.

Secondary information

Type

Written question

Reference

744 cc194-5WA; HL6166

Session

2012-13

Subjects

Company accounts Fines

Link

View this Written question on www.publications.parliament.uk