At the end of last month, confirmation statements replaced a company’s annual return to Companies House. They are intended to provide up-to-date information in the same way as annual returns did. However, there is a key difference in how the system now operates.
Now, rather than you providing a snapshot of your company data at a specific date, you’ll now ‘check and confirm’ the info held is accurate.
People with significant control
This means that once a year you can review your details and let Companies House know if there have been any changes. Another notable difference is that in your first confirmation statement you’ll also need to include the information held in your people with significant control (PSC) register.
A PSC is an individual who:
- has more than 25% shares or voting rights in your company
- can appoint or remove a majority of directors
- can influence or control your company or trust
Your company must deliver a confirmation statement at least once a year, even if the company is dormant. If you don’t do this, the registrar might assume your company isn’t carrying on business and might take steps to strike it from the register. If the registrar strikes a company off the register, it ceases to exist and its assets become Crown property.
If your company is operational, the company, its directors and any other officers could be prosecuted because they are responsible for ensuring they submit the confirmation statement on time. Failing to do this is a criminal offence.
All companies are affected
The requirement to file a confirmation statement applies to all companies, including small companies.
For help with confirmation statements, please contact us at IN Accountancy, your local accountants in Stockport, or find more information here.
