My companies annual accounts are due in today, and having finally got hold of my accountant, I now know he is recovering from illness and unable to complete them.
I initially sent my usual data for the accounts at the start the of the month to him, and got a brief holding response that didn't indicate any problems (if he thought we'd miss the deadline, he would have flagged it then I'm sure). Assumed all was in hand , but having not heard back tried various ways to get in touch this week. I suceeded this morning, and he explained he had been in hopsital. He's normally very reliable so I'd kind of figured by then it would be something like that.
He says he will contact CH, and ask for an extension, but I haven't heard anything. He did say it was unlikely to be granted because the illness was affecting him rather than me.
I'm aware that missing the deadline is an offence - a fine is payble (OK), but I'm also liable for prosecution. My accountant assures me that the latter shouldn't happen for a very short delay, but reading online I've seen different.
I could try and prepare these myself from the previous accounts & freeagent data (I have an Accounting with business degree, though I've never actually worked in the field) and while I should be able to produce something that gives a true and fair view, I don't know how he's worked out some calculations in previous years, and there'd (at least) be an issue of consistency, especially when he picks this back up again.
Not really sure what to do now - wait for him to recover & submit late , or submit now and risk errors of future problems harmonising the accounts.
Any thoughts much appreciated
Replies (24)
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Your accountant is right about the risk of being prosecuted for a short delay.
I agree with the above that you are partly the author of your own misfortune by waiting eight months before passing your records to your accountant. Do it by Christmas next time.
You might like to suggest that your accountant should reimburse you for the penalty, but I know what I would say if I were him.
If he is going to be fit enough in the next month to complete the accounts I would wait for him, and just get him to confirm that he will meet any penalty incurred because of his delay.
The quick actions you have seen reports of have been in respect of late filing of the Confirmation statement I believe, not the accounts.
I certainly can't see any judge finding against you if it went to court provided he completed and submitted as soon as he could following his illness, especially if you have a good filing record in the past.
Much riskier to try yourself.
If he thinks it could actually be a longer time delay you should ask if he has cover so that someone else can prepare them for you on his behalf. Many accountants have arrangements in place
-NFC (No ******* chance) of being prosecuted.
-Don't try to do it yourself.
-If your accountant cant get it done in the next month look elsewhere.
-Tell him you want him to pay the fine. If he's accepted it he should take responsibility.
Its common that directors are jailed for such an offence so maybe start saying your goodbyes this weekend and have a nice roast dinner on Sunday.
On the slim chance you arent sent to a maximum security facility take it as a lesson learned in not leaving your accounts to the last minute and pay the £150 fine!
Mmm depending on one or two other factors most of us on here know how we could get you a guaranteed 3 month extension which Companies House can't argue with.He says he will contact CH, and ask for an extension, but I haven't heard anything. He did say it was unlikely to be granted because the illness was affecting him rather than me.
Anyway as you say "a fine is payble (OK)" then just leave it at that. If this is a first fault there's practically zero chance of a prosecution. Take it as a lesson learnt and get your records to your accountant sooner in the future.
If I was was your accountant I would point out our T&C's which say you must send me the stuff at least 3 months prior to the deadline and tut a bit about the whole point is if i am in hospital for 2 weeks there is no problem.
However if I regularly accepted the accounts on such a short time span and this would normal business for me, I would either pay or appeal the penalty.
No accountant is going to be able to file them for you this afternoon, not least as they will need the working papers from your current accountant.
Get on to Companies House website and shorten your accounting period.
And take your accounts to someone else. Now. Not in a few months time when you get round to it.
Agree that you are responsible but I would be tempted to suggest calling Cos House and see if he has already got an extension or tell them what has happened and the fact that your accountant was in hospital - they might give you an extra week or so
From you username, I am 99% sure that your company is Norfolk Bluebell Wood Ltd.
If so, then I have established, from the Companies House website, that an extension of one month has (no doubt today) been arranged, by your accountant, with Companies House.
As “Wanderer” has indicated, there was an established method of obtaining a 3 month extension to the Accounts filing date: that method is, with respect to your accountant, clearly not known by him; but it no longer matters.
If you google “Webcheck” you will be able to confirm that your company has been granted the 1 month extension, to 30 September 2018.
So on this occasion, no harm done; and if you respond promptly to any queries which your accountant raises, no doubt you will be able to ensure that you meet the new deadline.
Basil.
EDIT. With my apology, my above post is incorrect - see my post below (1.33 a.m. on 1 September 2018).
According to CH the year end is 31 December 2017 and the deadline is 30 September (and has been all along).
RM
From you username, I am 99% sure that your company is Norfolk Bluebell Wood Ltd.
And if that is the case, the accountants who prepared the last accounts are quite a large firm which has the benefit of not relying on an individual's good health
Your accountant appears to have known he was going to be ill this month in September 2017......
Waiting 8 months wasn't clever and put your accountant in a difficult position. That said, I wonder if your accountant gave any indication that the deadline might not be met?
File late, accept the fine and maybe agree with your accountant to split it 50/50 if , without illness, your accountant stood a reasonable chance of meeting the deadline by going that extra mile.
Waiting 8 months wasn't clever and put your accountant in a difficult position.
To be fair, Andy, it now seems the OP only waited 7 months.
Oh right, sounds like the type of client you would really want to get out of your sick bed for.
With apologies, the theory in my previous post was incorrect.
I had not noticed that a one month extension of the previous Accounting Reference Date (from 30 November to 31 December) had been effected, resulting in Financial Statements being required for the 13 months to 31 December 2017; the submission due date being therefore 30 September 2018.
Clearly therefore the OP has overlooked the extension of the Accounting Reference Date, and consequently assumed that the deadline was 31 August 2018 (no doubt recalling that the deadline for the year to 30 November 2016 Financial Statements was 31 August 2017 - those Financial Statements were submitted “at the last minute” on 31 August 2017).
The OP has thus, with respect to him, panicked unnecessarily, although I am surprised that the accountant was unaware that the submission deadline is 30 September 2018.
May I respectfully suggest that the OP ensures that the Accounting records which he has supplied to the accountants are for the 13 months to 31 December 2017 (and that he reminds the accountant of the correct period for which the Financial Statements should be prepared).
Basil.
You don’t need to tell us the actual company name, but is or isn’t it Norfolk Bluebell Wood Ltd?
If it is, the thoughts of you and your accountant seem to contradict the information gleaned from my colleagues, which is baffling.
Fair enough, we guessed wrong!
Glad you got the accounts in on time. There was another option, which would be to change the Accounting Reference Date to one day earlier. That takes a couple of minutes to do and gives you three months from the date the change is filed to submit the accounts to Companies House (without incurring a penalty).
RM