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Every registered company in the United Kingdom, whether trading or dormant, needs to file for an annual confirmation statement to Companies House.
Formerly known as an annual return, confirmation statements update essential details about the company, including registered office address, directors, secretary (if applicable), and shareholders.
But what is a confirmation statement and why does every business need it? In this article, you will find why every business needs a confirmation statement, when to file it, and the consequences of not submitting your confirmation statement.
What is a confirmation statement?
A Confirmation Statement is a document that informs Companies House that the company details in the register for your business is up to date.
All Limited Companies and Limited Liability Partnership (LLPs) must submit confirmation statements to Companies House at least once every 12 months.
It also verifies that important company data recorded at Companies House is still accurate at a certain date.
Why is a confirmation statement important?
A confirmation statement is crucial for many reasons, making it important for directors to submit this statement annually even if there have not been any changes to your company during the review period.
A confirmation statement is important because:
It maintains transparency: Accurate and up to date records ensure stakeholders and the public have reliable information about your company.
Legal compliance: A confirmation statement is a critical part of legal compliance that ensures accountability, transparency, and accuracy.
Prevents fraud: Filing your confirmation statement regularly helps prevent fraudulent activities. It will be hard for unauthorised individuals to manipulate your company’s records.
Avoid penalties or company dissolution: Failure to file a confirmation statement may lead to penalties or even company dissolution.
When do I need to file a confirmation statement?
Every company, including dormant companies, must file a confirmation statement at least once a year. It needs to be filed every year within 14 days of the anniversary of the approximate incorporation date of the company.
Your 12 month review period starts from either the date you incorporated your company or the date of the last confirmation statement filed.
For instance, if your company was incorporated on 13 June, 2024, your 12-month review period will start on 13 June 2024 and will end on 12 June, 2025.
The filling date for your confirmation statement will be 12 June, 2025 and the filing deadline is 14 days later, which will be 26 June, 2025.
The exact window for filing and deadline can be seen on Companies House website. You can also sign up for email reminders from Companies House to ensure that your confirmation statements are filed on time.
What happens if I don’t file a confirmation statement?
Penalties: Companies House imposes financial penalties to companies who do not file their confirmation statement. These penalties can affect the company’s finances.
Compulsory strike-off: Companies House can also initiate a compulsory strike off process if a company misses to file confirmation statements. The company may cease to exist legally.
Disqualification of directors: Directors may face disqualification if a company is dissolved. They may be banned from serving as directors for 2-15 years impacting their ability to participate in other businesses.
Tax implications: Not filing your confirmation statements brings about incorrect details on the public register which can lead to tax related issues.
Suspension of trading: Inaccurate company information on the public register can lead to the suspension of trading activities which may cause major disruption and loss of income.
To avoid these consequences, ensure timely submission of confirmation statements.
What are the causes of an overdue confirmation statement?
An overdue confirmation can occur for various reasons such as:
Unfamiliar with the deadline: Companies have 14 days to submit the confirmation statement after the 12-month review period. You should ensure timely submission of confirmation statements by setting reminders every year and keep track of important dates and deadlines.
Administrative errors: Missed confirmation deadline may result from administrative errors. Directors should always review and manage their filing responsibilities to avoid errors or appoint someone who can help them with the administrative tasks.
Failing to update changes in company information: If there have been any changes in the company, it is essential to update them promptly to avoid overdue submissions.
How to rectify an overdue confirmation statement?
If you find yourself dealing with an overdue confirmation statement, address it promptly to avoid penalties and maintain compliance. Here are steps you can take to address an overdue confirmation statement:
Identify reasons for the delay: Recognise the reason why the confirmation statement wasn’t submitted on time.
Ensure you have all the necessary details: Compile necessary and accurate data for the confirmation statement.
Submit the statement: File the confirmation statement with Companies House promptly. Make sure you contact Companies House and explain the delay. They may waive the penalties and if not, ensure you pay all the penalties.
Which company details can be updated while filing confirmation statements?
You can update certain details of your company during the Confirmation Statement filing process. These changes includes:
- Standard Industrial Classification (SIC) codes
- Trading status of shares
- Shareholder information
- Statement of capital
- Exemption from having to keep a register of People with Significant Control
All other changes such as changes in officers’ details, registered office address, company name, etc. have to be filed separately using the relevant processes before or at the same time as filling your confirmation statement.
Who is responsible for filing a confirmation statement?
Directors are responsible for filing the confirmation statement with Companies House. They are to make sure that the confirmation statement is filed before the deadline.
The responsibility can also be delegated to a company secretary. In an LLP, designated members are responsible for filing confirmation statements.
How BusinAssist can help with confirmation statement
It is important that your company information is up to date on the Companies House’s register. BusinAssit can help you file your annual confirmation statements. We will help you get missing documents or codes from Companies House at no additional cost. For more information, contact us at info@businassist.com.
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