AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A new private limited company usually has 21 months from its date of incorporation to file its first accounts with Companies House, because the first accounting period normally runs longer than 12 months. After that, accounts are due 9 months after each accounting reference date. Filing late brings an automatic penalty of £150 to £1,500 for a private company, doubled if you are late two years running (Companies House, October 2026).
How the first deadline is set
Companies House sets a new company's first accounting reference date (ARD) as the last day of the month in which the first anniversary of incorporation falls. So the first accounts usually cover a little more than 12 months. Companies House's guidance (updated 23 October 2026) gives the deadline for first accounts covering more than 12 months as the longer of:
- 21 months from the date of incorporation (18 months for a public company), or
- 3 months from the ARD.
For a first period of 12 months or less, the normal deadline applies: 9 months after the ARD for a private company, 6 months for a public company. Filing on a Sunday or bank holiday does not extend the deadline.
Worked example
Example only: Adaeze incorporates her company on 11 May 2025. The first anniversary falls in May 2026, so the ARD is 31 May 2026 and the first accounts cover 11 May 2025 to 31 May 2026, just over 12 months. The deadline is the later of 11 February 2027 (21 months from incorporation) and 31 August 2026 (3 months from the ARD), so 11 February 2027. Her second accounts, for 1 June 2026 to 31 May 2027, are due 9 months after that ARD; the exact date is shown on her company's Companies House record.
Late filing penalties
| Time after the deadline | Private company | Public company |
|---|---|---|
| Up to 1 month | £150 | £750 |
| 1 to 3 months | £375 | £1,500 |
| 3 to 6 months | £750 | £3,000 |
| More than 6 months | £1,500 | £7,500 |
The penalty doubles if accounts are late two years in a row, and the notice is issued automatically. Companies House also says late or non-delivery of accounts is a criminal offence: directors risk prosecution and an unlimited fine, and a company the registrar believes is no longer trading may be struck off, with its assets passing to the Crown.
Appeals: what usually fails
You can appeal, and Companies House will not collect the penalty while it considers the appeal. You need a specific reason with dates and evidence showing circumstances outside your control. GOV.UK lists reasons that are usually not accepted, and several catch diaspora founders:
- It was the company's first accounts.
- The company was dormant.
- The company could not afford to pay.
- Another director was responsible, or the accountant made a mistake.
- Not knowing how to file, or post delays.
- Directors living or travelling overseas.
If an appeal is rejected you can go to the senior casework manager, then independent adjudicators, then a final application to the Registrar, in that order.
Which accounts you can file
Most new companies qualify as micro-entities or small companies. For periods starting on or after 6 April 2025, a micro-entity meets two of: turnover of £1 million or less, balance sheet total of £500,000 or less, 10 employees or fewer. A small company meets two of: turnover £15 million or less, balance sheet £7.5 million or less, 50 employees or fewer.
Filing methods are changing. Companies House says the joint online accounts and Company Tax Return service closed on 31 March 2026, and from 1 April 2028 accounts must be filed with commercial software in iXBRL format, with paper filing ending. Choose software or an accountant who files that way now.
Running the deadline from Nigeria
Founders who incorporated in the UK and then moved to Nigeria, or who registered a UK company from Lagos, often miss the first deadline because nobody is reading the post at the registered office. The duty to file sits with the directors whether or not anyone reminds them. Give your accountant access early, set the due date in a calendar that two people see, and allow time for identity verification if a new director must sign.
Changing the year end
You can change the current or previous ARD, but only before that period's filing deadline. Shortening is currently unlimited. Extending is capped at 18 months from the start of the period and restricted to once in five years except in specific cases. Shortening gives a deadline of the longer of 9 months from the new ARD or 3 months from the AA01 notice, so check the new date before you file the change.
Steps
- Find the ARD and accounts due date on your Companies House record.
- Keep bookkeeping current; do not leave the first 12 months to the end.
- Decide which accounts you qualify for (micro-entity, small).
- Approve and file before the deadline; apply for more time only for an unplanned event and only before the deadline.
- Prepare the Company Tax Return for the same period; see registering for Corporation Tax.
For the penalty system in more depth see Companies House late filing penalties, and for a company that has not traded, what a dormant company still files.
Where Pryme fits
Clean records make the first accounts quicker and cheaper. Pryme Business Accounts include a Finance agent that prepares categorised transactions and reconciliations for a person to review, and every payment can carry a receipt.
Questions people ask
When are my first company accounts due?
Usually 21 months after incorporation for a private company whose first period is longer than 12 months, or 3 months after the ARD if that is later.
What is the penalty for filing accounts late?
For a private company: £150 up to a month late, £375 for 1 to 3 months, £750 for 3 to 6 months and £1,500 after 6 months, doubled if late two years running.
Can I appeal because I live in Nigeria?
GOV.UK lists directors living or travelling overseas among reasons that usually fail. Appeals need specific circumstances outside your control.
Do I still file accounts if my company has not traded?
Yes. Companies House says all companies must file annual accounts, even if dormant or not trading.
Sources
- Companies House: Life of a company, part 1 accounts (updated 23 Oct 2026) · accessed Oct 2026
- GOV.UK: Annual accounts, penalties for late filing (updated 14 Oct 2026) · accessed Oct 2026
- GOV.UK: Accounts for micro-entities, small and dormant companies · accessed Oct 2026
- Companies House: Life of a company, annual requirements (updated 30 Jun 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.