An increasing number of British companies are struggling to meet deadlines for filing accounts to Companies House.

Late filings have increased by 25% over the last four years and a total of 238,699 British companies filed their accounts late last year as businesses struggle to balance their books.

The late filing of accounts can have severe ramifications on a business, especially in the current financial climate.

The action can result in banks cutting a firm's credit line and insurers removing trade credit insurance.

"Late filing is a very important indicator of a company struggling," said Xavier Deneker of credit insurer Coface.