Twitter fined over late accounts

Social media website Twitter is fined after failing to file its UK company accounts with Companies House (CH) on time.

The company was due to file their accounts by 30 September, but CH records show they are still outstanding.

Twitter UK and Tweetdeck Ltd have since incurred fines for failing to do so, which will increase the longer they defer. 

While there's no suggestion the company has avoided any tax liability, the accounts are used as a basis to file tax with HMRC.

Continued...

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Comments

No worthier news today?

BryanS1958 | | Permalink

There seems to be nothing happening in the world today worthy of comment if the best we can come up with is Twitter not filing accounts on time!  It happens all the time, who cares?:-)

Not correct...

Ian McTernan CTA | | Permalink

This:

While there's no suggestion the company has avoided any tax liability, the accounts are used as a basis to file tax with HMRC.

Not correct- for all we know the CT600 and attached iXBRL accounts could have been filed with HMRC months ago.  Let's not assume something that has no basis in fact.

If anything, the statement is misleading and implies that there is a suggestion that the company may be avoiding a tax liability, given the current witch hunt against multi nationals.

Late submission of accounts to Companies House occurs all the time, which is why they have a penalty system- maybe if they geared the penalty to turnover larger companies might feel the need to submit on time, for a small company the fines can be huge!

There can be a variety of reasons for accounts being late- one of which is tying down the requisite people to get them all approved and signed off by all concerned!

 

Tax?

BryanS1958 | | Permalink

Agreed Ian, it does make you wonder why there was any reference to tax at all - being late filing accounts at Companies House can happen for any number of reasons.

johnjenkins's picture

As yet there aren't

johnjenkins | | Permalink

any penalties. Penalties are only due when the accounts are filed. So no accounts filed no penalty. It seems quite wierd that there is a fine when accounts are submitted late yet the more important document, the annual return, has no penalty regime.

Why is it more important?

Roland195 | | Permalink

johnjenkins wrote:
yet the more important document, the annual return, has no penalty regime.

Why do you consider the annual return to be the more important document? In many cases, much of the information will be the same as on the accounts. Would it not make more sense to simply require appendices for directors/shareholders details when filing the accounts?

Half as much work for Companies House, far less confusion (of course, there may have to be a few redundancies at CH...)

johnjenkins's picture

We could all

johnjenkins | | Permalink

find ways of making things easier for information surrounding companies house. So if we all agree, do away with the annual return and simply have all info on a covering sheet submitted with either abbv. or full accounts. Sounds good to me.

Late Filing Penalties

Myshkin | | Permalink

The problem is that the regime is just plain silly.  To have the same penalties for your local joiner and multinationals is crazy.  Does Twitter really care about £150, £375 fines?  Or bring the striking off forward so that it kicks in if you are one month late.  What's the point of laws if you don't enforced them

AR 'Penalty'    1 thanks

Ian McTernan CTA | | Permalink

Although there is no 'penalty' for the late submission of the annual return, there is a fee involved for the filing of it.

Also, Companies House will automatically start the process of striking off the Company if you fail to submit the annual return for a few months and don't respond to their reminders- so in a way the 'penalty' for not submitting it can be a lot more than not submitting your accounts.

Have to say, the current penalty structure is crazy, should be turnover or asset based (or both) so larger companies are hit in the same proportion as smaller companies.