Accountant Not Submitted End of Year Accounts - 4 months overdue

[Tractor Trace]

I discovered that my accountant had failed to submit my accounts after receiving a company risk rating change alert then on checking Companies House website, it showed that they are overdue by over 4 months.

This was just as I was considering applying for a Bounce Back Loan, which will now obviously no longer be an option for me with a reduced rating and outstanding submission. I have emailed my accountant querying why this has happened and am still awaiting a response. As I am between contracts will this show up when going through checks as part of starting a new contract with a potential client either direct or via an agency? As HMRCs website states that no appeal can be made based on late filing being as a result of an accountant's failure/ negligence then it looks like I will incur a late penalty fee of £750

Is there anything I can do in the way of damage limitation? Currently I am at the mercy of my accountant, still awaiting a response and not able to submit my own accounts - this has resulted in damaging the reputation of my business and surely any future prospects of getting contracts, with a late penalty notice on my company record for I don't know how long..

[Lance]

Accountant Not Submitted End of Year Accounts - 4 months overdue

You need to look closer to home. 4 months late is an awfully long time. And it’s your responsibility.

Stop emailing and start ringing.

Get a new accountant now.
Something you should have done many months ago.

They should be able to recover the situation. It’s going to cost you more than £750 though.

It’s unlikely to impact finding new work. Agencies don’t credit check their suppliers.

[TheDogsNads]

I discovered that my accountant had failed to submit my accounts after receiving a company risk rating change alert then on checking Companies House website, it showed that they are overdue by over 4 months.

This was just as I was considering applying for a Bounce Back Loan, which will now obviously no longer be an option for me with a reduced rating and outstanding submission. I have emailed my accountant querying why this has happened and am still awaiting a response. As I am between contracts will this show up when going through checks as part of starting a new contract with a potential client either direct or via an agency? As HMRCs website states that no appeal can be made based on late filing being as a result of an accountant's failure/ negligence then it looks like I will incur a late penalty fee of £750

Is there anything I can do in the way of damage limitation? Currently I am at the mercy of my accountant, still awaiting a response and not able to submit my own accounts - this has resulted in damaging the reputation of my business and surely any future prospects of getting contracts, with a late penalty notice on my company record for I don't know how long..

Erm, didnt you know when your year end was due, start getting stuff together or phoning and asking the accountant what they needed?

This is akin to driving around with an expired MOT or VED.

Bottom line is you could start getting heavy with the accountant and say they should pay any late filing fee \ penalty because of their 'error' but, I'll be surprised if they dont kick back.

Going forward, you need to take ownership. It's your company and ultimately you're responsible, running a company isnt a start and then forget all about it. Id also start looking around for a new accountant.

[Tractor Trace]

Erm, didnt you know when your year end was due, start getting stuff together or phoning and asking the accountant what they needed?

This is akin to driving around with an expired MOT or VED.

They prepared all accounts late last year, I authorised them months in advance for submission. I will look at going with another accountant but my fear is that the change over from one to another could cause even more hassle and further delays. Will this late filing alert stay on my company record indefinitely, even when the accounts are finally filed?

[Tractor Trace]

You need to look closer to home. 4 months late is an awfully long time. And it’s your responsibility.

Stop emailing and start ringing..

Done that. Emailed and rang following up email. Promised I'd be called back. No phone call and no email response. Sent further email.... radio silence.

[northernladuk]

Done that. Emailed and rang following up email. Promised I'd be called back. No phone call and no email response. Sent further email.... radio silence.

Start contacting other accountants you fancy moving to so when your old one does pop up you can start to move away from them.

[malvolio]

Start contacting other accountants you fancy moving to so when your old one does pop up you can start to move away from them.

Don't even wait. Find a new one, engage them and let them work it out with the old ones. I assume you still have all the necessary records, so if needs be the new ones can always start from scratch.

However, as others have said, ultimately it's your problem, not the accountant's. So start paying attention to the company management.

[GhostofTarbera]

As if by magic an article appears


Limited company tax ruling puts onus on directors to not just hand it all to their accountant


Sent from my iPhone using Contractor UK Forum

[Maslins]

Don't even wait. Find a new one, engage them and let them work it out with the old ones. I assume you still have all the necessary records, so if needs be the new ones can always start from scratch.

Personally I wouldn't agree with this. If your existing accountant has prepared figures, you've signed them off, and all that is waiting on is them submitting them, it would be a lot of extra hassle and cost to disregard that and start again from scratch with a new accountant. Also if the existing accountant isn't responding to you as a current paying client, it's highly unlikely they're going to respond to a new accountant when you've left.

If the existing accountant has gone completely AWOL (I'd give them at least a couple of weeks of periodic chasing before coming to this conclusion), then yes, you may have no other viable option...but I would make significant efforts to chase your existing accountant first. If what you say re progress to date is true, it should just be clicking a few buttons for them to submit, so a trivial task. That's not much help if they have disappeared off the face of the planet though.

If you did do everything, signed accounts etc and they simply didn't submit, then I think you'd have a good argument for asking the accountant to pay the fine. Whether they do or not (especially if they've gone bust in the meantime) is another question. Legally the fine rests with your company, not the accountant, so you'd need to pay Companies House then possibly attempt to recover from the accountant. Ie you're not in a great position on this front I'm afraid. You could potentially try to challenge the penalty, but I think your chances of being successful are low. As others have suggested, whilst some directors may find this unfair where they pay an accountant, the responsibility lies with you as director.

I don't see it having any significant impact on your credit rating or chances of getting another contract though, so I don't think you have any concerns there.

[Tractor Trace]

Well, finally heard back earlier today. They've filed the accounts, apologised and are accepting paying the fine when the penalty notice is served. It was literally just a case of forgetting or failing to press a couple of buttons to submit what were already prepared, authorised accounts. One mistake too many.