What Is A Confirmation Statement?
If you’re a director of a limited company (even if your company is dormant or has stopped trading) or a designated member of a limited liability partnership (LLP), you must file what’s called a confirmation statement. It helps Companies House stay up to date on the information they hold about your company. Companies must file at least once a year, but you can actually file more often if you like. More details about this can be found further in the article.
Here at Joanna Bookkeeping, we support business owners by helping them to understand their legal responsibilities, and explaining the guidelines they must follow when owning and operating a business. It’s very important to understand your legal responsibilities as they can’t be moved onto someone else.
What is a confirmation statement?
A confirmation statement (previously called an annual return) is a legal document submitted by limited companies or LLPs to Companies House every year to ensure that your business details are up to date, and as such, it’s important that you understand what your legal obligations are when filing a confirmation statement.
If you own a limited company or a limited liability partnership (LLP), you must file a confirmation statement at least once a year, but we’ll go into more detail in the next section. Also, you’re not required to file this document if you’re a sole trader because sole traders don’t report to Companies House.
When do you have to file a confirmation statement?
A company’s confirmation statement is typically required every 12 months. This 12-month period is called a review period and it starts on either:
➡️The date your company incorporated
➡️The date you filed your last confirmation statement
You have up to 14 days after the end of the review period to file your confirmation statement, and you can even sign up for email reminders for when your confirmation statement is due. You can also check your company’s due date for a confirmation statement on the Companies House website.
You can file a confirmation statement more often and this will depend on any changes to the company during the review period. It’s important to mention that submitting a confirmation statement earlier will start a new 12-month review period.
Even if there are no changes to your business, you still have to file a confirmation statement just to confirm everything is up to date.
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What information is required for a confirmation statement?
There are a few pieces of information that need to be included in a confirmation statement and/or confirmed, including:
✅The details of your registered office, directors, secretary, and the address where you keep your records
✅Your statement of capital and shareholder information if your company has shares
✅Your SIC code (the number that identifies what your company does)
✅Your register of ‘people with significant control’ (PSC)
If this seems a little daunting and you’re not even sure where to start, have a chat with your accountant and ask them for help.
It’s important to note that a confirmation statement cannot be used to make changes to the following:
➡️Your company’s officers
➡️The registered office address
➡️The address where you keep your records
➡️People with significant control
These changes must be made separately before submitting your confirmation statement. When submitting your confirmation statement, you will then confirm that these details are correct and up to date.
Do you have to pay for a confirmation statement?
You can file your confirmation statement either online or by post. You will need to pay a fee of £13 if you file your confirmation statement online, and £40 if you choose to file it by post. Filing it online is super easy and as you can see, much more cost-effective.
You don’t make a payment every time you have to file a new confirmation statement. You pay only annually and if you need to make updates during your 12-month review period, you don’t pay additionally.
What happens if you don't submit your confirmation statement?
It’s a director’s legal responsibility to submit confirmation statements. In a limited liability partnership this responsibility is with a designated member. Failing to do so is a criminal offence and means that you may be fined up to £5,000 if you are a director or a designated member. You can ask your accountant to help you submit a confirmation statement, but make sure you talk to them before any deadlines and not at the last minute. Making sure things are done on time is your legal responsibility, not your accountants.
If you fail to file your confirmation statement by the due date, your limited company may be struck off, meaning it will cease to exist, putting at risk any ongoing operations.
In conclusion, a confirmation statement is an essential legal document that you must file if you’re a limited company or an LLP. It must be filed at least once a year, and failing to do so can result in a severe penalty and serious consequences for your business.
If you have any questions about filing a confirmation statement or want to talk to someone who understands your legal responsibilities as a business owner, book a call with one of our Oxford-based accountants.
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