Chelsea Williams, Personal Debt Adviser at Scotland Liquidators, shares what information limited company directors in the UK must retain, report and file to Companies House and HMRC as part of their directorial duties.

What happens if you submit inaccurate company information?

If you’re limited company director, you’re legally required to keep company records and file reports to Companies House, the public register for all UK companies. You may decide to employ the services of an accountant to ensure that reporting and filing obligations are fulfilled, and information is accurately recorded, however it’s important to note that the company director is legally responsible for this.

If the information that you submit is inaccurate, the consequences are serious and can include:

• HMRC may collect more or less tax than due, which could cause an imminent or future cash flow gap if your company is not cash rich. You may also be charged interest or receive a penalty if you underpay tax.
• The financial performance of your company may appear better or worse than it is.
• You may face a penalty if your records are inaccurate, incomplete, or unreadable.
• If company information on Companies House is inaccurate, your banking provider may view this as a security threat and freeze your account.

If you file inaccurate information, you should complete and submit an RP04 form which will allow you to submit a second version of an already filed document. You will need to submit an amended tax return and accounts, update your confirmation statement and revise company information on Companies House to correct inaccuracies.

How can you ensure the accuracy of your financial reporting? 

To improve the accuracy of your financial reporting, you should seek professional support or utilise industry standard accounting software to develop a watertight reporting process.

Ways of ensuring the accuracy of your reporting include:

• Review accounting information, financial reports, and internal controls regularly to ensure that data is recorded correctly and that systems are in tune with one another if you rely on integrations and bank feeds to record data.
• Ensure that you’re up to date with the latest accounting standards and practices. HMRC and professional bodies occasionally release guidance to promote better accounting practices and increase data accuracy and compliance.
• Use accounting software and automation to streamline the recordkeeping process with intuitive features designed to track cash flow, invoices, expenses and payroll.
• Use a qualified and regulated accountant to guarantee accurate reports and filings. Accountants follow systemised procedures to ensure accuracy, such as reconciliation and approval from a chain of senior accountants.

To ensure that your company information is accurate, you need to first understand what information is required.

Filing requirements of a company director

As a company director, your filing obligations include: 

• submitting Company Accounts to Companies House annually
• submitting Company Tax Returns to HMRC
• retaining company records relating to cash inflow and outflow, such as receipts, invoices and relevant documents to support tax enquiries or investigations
• submitting confirmation statement
• submitting a monthly/quarterly VAT return if you’re VAT registered
• PAYE submission

Reporting requirements of a company director

As a company director, your reporting obligations include: 

• providing Companies House with basic information, such as details of directors, company secretaries and people with significant control (PSCs), share allotment and registration of any changes
• reporting any changes, such as to your personal details, business, directors, PSCs, company secretaries, and if you appoint an accountant/tax adviser or issue more shares
• reporting any changes to your personal information, including name, nationality, occupation, date of birth, service address and residential address

If your company is dormant, reporting and filing requirements will remain mostly unchanged as you must file a set of dormant accounts and a confirmation statement.

Inaccurate financial reports can have a knock-on effect on the financial management of your company and adversely hit company cash flow, so accuracy and expert advice are both essential and paramount for business owners.

About the author

Chelsea Williams is a Personal Debt Adviser at Scotland Liquidators, a company liquidation and restructuring specialist delivering expert advice across Scotland. Chelsea is a highly knowledgeable advisor and supports both individuals and companies across Scotland by providing company closure and rescue advice.

See also

Make sure you are compliant by displaying the HSE Law Poster

What you need to know about HMRC tax investigations

How to get government grants for your business

Find out more

File a second filing of a document previously delivered (RP04) (GOV.UK)

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Publication date

9 May 2024

Any opinion expressed in this article is that of the author and the author alone, and does not necessarily represent that of The Gazette.