If you’re running a limited company or managing business accounts, keeping on top of deadlines has always been important, but in 2025 it has become critical. Both Companies House and HMRC are tightening their penalty systems, meaning even small delays could lead to larger and more frequent fines.
These changes are designed to improve compliance, transparency, and accuracy across the board. But if you’re unprepared, you may find yourself paying more than expected. Here’s what’s changing and what you need to know.
Companies House: A New Approach to Penalties
As part of the Economic Crime and Corporate Transparency Act, Companies House is rolling out a more structured model for late filing penalties. While the current nine-month filing deadline for private companies still applies, the government has already indicated that this may be shortened to six months in the near future.
The real change lies in how penalties will be applied. Instead of treating every late filing the same, Companies House will now consider your company’s filing history. Put simply, filing late once might still be manageable, but repeated lateness will be taken far more seriously and fines will increase accordingly.
For example, a company filing one month late for the first time would face a £150 penalty. But if it happened again, that same delay could result in a £300 fine. A return filed three months late would cost £375 for a first offence and £750 for a repeat. The message is clear: lateness is no longer a one-off inconvenience; it’s a habit that could cost you.
HMRC: A Fairer Points-Based System
Alongside this, HMRC is changing how it penalises late VAT and Self-Assessment returns. A new points-based system is being introduced, which means that businesses won’t face immediate fines for a single slip-up. Instead, each late submission will add a point to your record. Once you reach the penalty threshold, two points for annual submissions, four for quarterly, or five for monthly, a flat £200 fine will be charged.
The good news is that these points don’t stay with you forever. If you keep up with your deadlines for 24 months, your record resets. It’s a system designed to encourage ongoing compliance rather than punishing one-off mistakes.
Late payment penalties are also being updated. Payments made within 15 days of the due date won’t attract a fine, but after that, charges escalate quickly. Between 16 and 30 days late, you’ll face a 2% penalty on the outstanding amount, and beyond 30 days, this rises to 4% plus daily interest until the balance is cleared.
How to Stay on Top of the New Rules
These changes highlight the importance of being proactive. Building filing dates into your calendar, rather than relying on official reminders, can help you stay ahead. Accounting software can also send automated alerts, making it harder to miss deadlines.
Working closely with your accountant is another way to protect your business. A good accountant won’t just file on time; they’ll also manage the process for you, keep you compliant, and advise on what to do if you anticipate delays. And if the worst does happen, they can help you navigate appeals and minimise disruption.
Key Takeaways
Both Companies House and HMRC are moving toward systems that focus on behaviour over time. One late return might be manageable, but repeat offenders will face escalating costs. HMRC’s new points-based model also gives businesses more breathing space, but it still places a premium on consistent compliance.
By planning ahead, using the right tools, and working with trusted advisors, you can avoid unnecessary fines, keep your cash flow healthy, and protect your company’s reputation.
Need Help Avoiding Penalties?
At Greystone Advisory, we work with businesses across the Midlands to make sure deadlines are never missed. Whether it’s submitting annual accounts, managing VAT and PAYE, or dealing with HMRC on your behalf, we’ll keep you compliant and penalty-free.
📞 Call us on 01332 913010
✉️ Email info@greystoneadvisory.co.uk
Don’t wait until penalties land on your desk, let us help you stay one step ahead.
