Limited Liability Partnerships : Limited Liability Partnership Late Filing Penalties

Every LLP whether they are in business or not must deliver their accounts report accompanied by an auditor’s report to the Companies House within a stipulated time. In 1992 the Parliament set forth the late filling penalties to ensure the timely submission of accounts reports by LLPs. The time allowed for the submission of the accounts reports and the auditor’s reports is usually 9 months from the end of the accounting reference period. However, if the first accounts since the incorporation of an LLP covers a period of more than 12 months, the report must be submitted latest within a period of 3 months from end of the accounting reference period or within 21 months from the date of incorporation, whichever is longer.

The Accounting Reference Date of an LLP is the last day of the month in which it was incorporated. For the submission of first accounts of an LLP, the Accounting Reference Period begins on the day it was incorporated and ends on its Accounting Reference Date in the next year. For subsequent submission of accounts, the Accounting Reference Period stretches from the day after the end of the earlier Accounting Reference Period and ends on the next Accounting Reference Date. As mentioned earlier, failing to abide by these dates can invite penalty to an LLP. The level of penalty, of course, depends on the amount of time that has passed since the filing deadline. For periods less than one month the penalty can be £150.00 or for periods exceeding six months the late fee can be as high as £1500.00. Also, for late fillings in successive years the penalty is doubled.

The Companies House sends filling remainders to the registered office of LLPs. To avoid late penalties it is advised that you take these reminders seriously. The Companies House may reject an accounts report for having insufficient data, and it does not allow extra time for re-filling of accounts reports. Hence, it is suggested that you submit your reports well within time, so as to avoid penalties. In certain cases, when there is a valid reason beyond the control of your organization or your auditors and accountants, the Companies House may allow for an extension upon the acceptance of your application.

The Companies House sends invoices to the registered office of your LLP when there is a penalty against your account. This penalty notice gives you all the details regarding the penalty, like filing deadline and the actual date of filing. It also advises you on how to pay the penalty fees. In cases of non-payment of penalties the Companies House can uses debt collectors for appropriation of the fees, and can also start legal action against your partnership. Again, in case of restoration of an LLP it is liable to pay all unpaid penalties incurred before the LLP got dissolved.

In case of extraordinary circumstances you can appeal against a penalty. The register upon his strictest discretion may allow an exemption. However, extraordinary circumstances do not include situations like, your accountant falling ill, or your LLP being dormant. However, if such an appeal is rejected you may subsequently communicate to the Senior Appeals Manager, Late Filling Penalties Department of your region. In cases, when you have trouble paying the penalty outright you can choose to pay it by monthly instalments. Usually, the period of time granted is over 5 months and is rarely over 10 months.

Be aware that the Companies House scans all documents and forms relating to penalties and makes them available for online searches.