Avoid business fines with expert help from Sleek
Running a business in the UK means keeping on top of potential HMRC fines and Companies House penalties. Miss a deadline? Well those costs add up fast. Whether it’s a late tax return, or an overdue filing, even the small slip-ups can lead to hefty fines and a mountain of admin.
This guide covers the key requirements, deadlines, and consequences, plus how the right accounting services can help you stay compliant.
What are business compliance penalties in the UK?
Business compliance penalties in the UK usually fall into two categories. Companies House fines cover filings like accounts and Confirmation Statements, while HMRC penalties apply to taxes such as VAT and Corporation Tax. We’ve listed them separately below for clarity.
If you’re looking for an exhaustive list, check the official HMRC penalties page.
Companies House penalties & fines
Companies House fines apply to essential business filings such as annual accounts, Confirmation Statements, and company updates.
Missing these deadlines can lead to financial penalties or even strike-off proceedings.
| Compliance Requirement | Penalties & Fines |
| Confirmation Statement | £150+ fine; potential prosecution or company strike-off for non-filing |
| Annual Accounts Filing | £150–£1,500 late penalties; doubled if late 2 years in a row |
| Companies House Notifications | Up to £5,000 fines; director disqualification or criminal prosecution in serious cases |
HMRC penalties & fines
HMRC issues some of the most common and costly business penalties in the UK.
These cover key tax obligations like Corporation Tax, VAT, PAYE, and Self-Assessment. Miss a deadline or file incorrect information, and you could face daily penalties, percentage-based surcharges, or even investigations.
| Compliance Requirement | Penalties & Fines |
| Corporation Tax Return | £100 fine; escalates with time; daily penalties and percentage-based fines |
| VAT Return | Default surcharge (2% to 15%) of VAT due; extra interest and penalties |
| PAYE (RTI) Submissions | £100/month minimum fine based on number of employees |
| Self-Assessment (for Directors) | £100 fine; daily £10 penalties after 3 months; up to £1,600 in late penalties |
| Recordkeeping Obligations | £3,000 fine per failure; possible further penalties for false returns |
Need help avoiding penalties & fines from HMRC or Companies House?
List of all Companies House Fines & Requirements
1. Confirmation Statement
What’s required:
All UK companies must file a Confirmation Statement at least once a year to confirm your registered details; directors, shareholders, registered office, and more are up to date.
Deadline:
12 months from your last Confirmation Statement date, with a 14-day window to file.
Penalties for non-compliance:
- £150+ late filing fee
- Company may be struck off the Companies Register
- Directors may be prosecuted for persistent non-compliance
2. Annual Accounts Filing
What’s required:
Every limited company must submit annual accounts to Companies House, even if the company is dormant.
Deadline:
- 9 months after your company’s financial year-end
- For new companies: 21 months from incorporation
Penalties for non-compliance:
| Delay | Penalty (Private Company) |
| Up to 1 month | £150 |
| 1 to 3 months | £375 |
| 3 to 6 months | £750 |
| More than 6 months | £1,500 |
Late two years in a row? Your penalty doubles.
3. Companies House Notifications
What’s required:
You must notify Companies House of key changes to your business:
| Change | Deadline | Form |
| Change of registered office | Within 14 days | AD01 |
| Director or secretary appointment or resignation | Within 14 days | AP01 / TM01 |
| Change of director or PSC details | Within 14 days | CH01 / PSC04 |
| Change of accounting reference date | Before filing due | AA01 |
| Share allotments | Within 1 month | SH01 |
Penalties for non-compliance:
- Fines up to £5,000
- Possible prosecution of directors
- Strike-off proceedings
Penalties for missed updates aren't always automatic. But they're never fun when they land. So why risk it?
List of all HMRC Fines & Requirements
1. Corporation Tax Return (CT600)
What’s required:
Every UK company must file a Corporation Tax return with HMRC, including detailed profit and tax calculations.
Deadline:
- File within 12 months of your accounting period end
- Pay your Corporation Tax within 9 months and 1 day of the period end
Penalties for late filing:
- £100 initial penalty
- Additional £100 after 3 months
- After 6 months: HMRC estimates your tax and adds a 10% surcharge
- After 12 months: Another 10% of the estimated unpaid tax
Persistent late filing triggers higher penalties. Make sure you know when Corporation Tax is due.
2. VAT Returns
What’s required: If your taxable turnover exceeds £90,000 (2024–25 threshold), you must register for VAT and file quarterly returns. Deadline: Usually one month and seven days after the end of your VAT period. Penalties for late filing:- Default surcharges start at 2% and rise to 15% of unpaid VAT
- Interest on late payments
- HMRC may assess estimated tax and apply civil penalties for deliberate errors
3. PAYE (Pay As You Earn) Real-Time Information (RTI)
What’s required: If you employ staff, you must report payroll information to HMRC every time you pay them via RTI submissions. Deadline: On or before each payday. Penalties for late filing:- £100 monthly penalty (for 1–9 employees)
- Penalty increases with company size
- Additional penalties if you’re more than 3 months late
4. Self-Assessment Tax Return (Directors)
What’s required: Company directors often need to submit a personal Self-Assessment tax return. Deadline:- Online: 31 January following the end of the tax year
- Paper: 31 October
- £100 instant penalty
- After 3 months: £10 per day (up to £900)
- After 6 months: additional £300 or 5% of the tax due (whichever is greater)
- After 12 months: another £300 or 5%, plus possible higher fines if deliberate
5. Recordkeeping Obligations
What’s required: You must keep business and accounting records for at least 6 years (sometimes longer). Using professional bookkeeping services can make this process a lot easier. Penalties for non-compliance:- £3,000 per failure to keep adequate records
- Additional penalties if poor records lead to inaccurate tax returns or underpaid tax
Keep your business compliant and fine-free with Sleek
Staying compliant in the UK is obviously more than a box-ticking exercise. It’s about avoiding business tax penalties, staying in HMRC’s good books, and protecting your business’s reputation. At Sleek, we help UK companies stay on top of their obligations—so you can focus on growing, not stressing over deadlines. Want to avoid costly business fines? Let’s get you started. Get in touch for expert support.Get expert help to avoid HMRC & Companies House fines & penalties
FAQs on Business Compliance Penalties
What are the most common business penalties in the UK?
The most common business penalties come from either Companies House or HMRC.
Companies House fines usually relate to missing filings like Confirmation Statements or annual accounts.
HMRC penalties are tax-related and include fines for late Corporation Tax returns, VAT submissions, PAYE reporting, and Self-Assessment.
These can start at £100 but often escalate with delays or repeated errors.
What’s the difference between a Companies House fine and an HMRC fine or penalty?
Companies House fines are about company administration and record-keeping—things like failing to file annual accounts or missing your Confirmation Statement.
HMRC fines are tax-focused and cover issues such as late Corporation Tax returns, VAT errors, or PAYE reporting failures.
In short: Companies House deals with your company’s legal filings, while HMRC enforces your tax obligations.
How much are the business tax penalties for late Corporation Tax filing?
If you file your Corporation Tax return late, HMRC issues a £100 penalty, followed by another £100 after three months. If you’re still late after six or twelve months, you could face daily penalties and surcharges of up to 10% of the tax due.
Can my company be struck off for non-compliance?
Yes. If you fail to file your Confirmation Statement or annual accounts, Companies House may begin strike-off proceedings. If this happens, your company could be dissolved— even if it’s still trading.
What happens if I miss a VAT return deadline?
Missing a VAT return can trigger a default surcharge. The rate starts at 2% of the unpaid VAT but increases to 15% if you repeatedly miss deadlines. You may also have to pay interest and face further penalties for errors or non-disclosure.
How can I avoid business fines and penalties?
The best way to avoid business penalties is to stay on top of your filing deadlines, maintain accurate records, and seek professional help where needed. Sleek can manage your filings and reminders—helping you stay compliant and avoid costly business fines.
