How to avoid having accounts rejected by Companies House

Companies House is currently rejecting a very high number of annual accounts submitted by reporting entities and their advisors. The rejection rate is 11.1%. The majority of rejections are due to simple errors or omissions but the impact on the company can be severe.

We look at the main reasons why accounts are rejected and tips on how to avoid them. It also looks at the potential implications of your accounts being rejected by Companies House.

The main reasons given for rejection are:

  • incorrect or missing statements, ie wrongly stating that the accounts have been prepared according to the relevant legislation;
  • audit exemption statements missing or incorrect;
  • duplicate made up date ie, accounts show same date as previously filed accounts;
  • signatory name missing off balance sheet or balance sheet signature omitted; and
  • accounting reference date/made up date absent or incorrect.

Tips from Coalesco:

Generally, every paper document sent to Companies House must state in a prominent position the registered name and number of the company.

Paper documents should be on A4 size, plain white paper with a matt finish. The text should be black, clear, legible and of uniform density. Letters and numbers must be clear and legible so that an acceptable copy of the document can be made. The following guidelines may help.

When you fill in a form:

  • use black ink or black type – blue ink or any other colour is not acceptable
  • use bold lettering (some elegant thin typefaces and pens give poor quality copies)
  • don’t send a carbon copy or use a dot matrix printer
  • remember – photocopies can result in a grey shade that will not scan well.

When you complete other documents, remember:

  • the points already made relating to completing forms
  • to use A4 size paper with a good margin
  • to supply them in portrait format (that is with the shorter edge across the top)
  • to include the company number and name.

What happens when accounts are rejected?

If your accounts do not meet Companies House requirements they be will returned to you for correction. It is advisable to get your accounts to Companies House well before the filing deadline as you will not be given any extra time if they are rejected.

If the accounts are submitted close to the filing deadline and subsequently rejected, an automatic late filing penalty will be issued if the accounts are not returned by the filing deadline. There is no grace period.