What is a Companies House Confirmation statement?

For anyone operating a limited company or Limited Liability Partnership (LLP) in the United Kingdom, the name “Companies House” will be a familiar one. It’s the official registrar of companies, playing a vital role in maintaining the integrity and transparency of the UK business environment. Among the various filings and requirements mandated by Companies House, the Confirmation Statement stands out as a crucial annual task.

 But what exactly is it, why is it important, and what does it entail? Let’s delve into the details of this essential piece of the UK business puzzle.

In essence, the Companies House Confirmation Statement is an annual snapshot of your company’s key information, submitted to Companies House to confirm that the details they hold on record are accurate and up-to-date. Think of it as an annual health check for your company’s administrative information. It’s not about reporting financial performance or significant operational changes; rather, it’s about ensuring the fundamental details about your company’s structure and key personnel are correct on the public register.

Prior to 2016, this filing was known as the Annual Return. The shift in terminology to “Confirmation Statement” reflects a subtle but important change in its purpose. While the Annual Return often involved reporting more detailed information, the Confirmation Statement is primarily about confirming the existing information rather than providing extensive updates.

How do you file your Companies House Confirmation statement?

First and foremost, you will need Companies House password and authentication code to begin the filing process and if you do not have these, you can register online.

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And before filing your confirmation statement, you will also need to check that all of your company’s details and up to date. If you discover that any of your company details are either incorrect, out of date or do not give a true reflection of your company’s status, it’s important that these details are updated straight away.

According to Gov.uk, before confirming your records are up to date, you must make HMRC aware of changes to your:

• Directors and secretary
• People with significant control (PSC)
• Company’s registered office address
• Changes you can make when you file your confirmation statement

Gov.uk also states that the confirmation statement has an additional information section, which you will need to complete if there have been changes to your:

• Standard Industrial Classification (SIC) code
• Statement of capital
• Trading status of shares
• Exemption from keeping a PSC register
• Shareholder information
• If nothing has changed

 

When do you need to file a Companies House Confirmation statement?

You must file a confirmation statement even if there have not been any changes to your company during the review period. This confirms that your records are up to date and the information held is correct.

Review period

You must file at least one confirmation statement every 12 months. Your 12 month review period starts on either:

• the date your company incorporated
• the date you filed your last confirmation statement

You must file your statement within 14 days of the end of your review period.

If you file a statement early

You can file a statement at any time during your review period. If you file a confirmation statement early, it will start a new 12 month review period.

If you do not file your statement within 14 days of the end of your review period, your company and its officers may be prosecuted. Your company may also be struck off the register.

Annual fee

It costs:

• £13 to file your confirmation statement online
• £40 to file with a paper form

Payment period

Your payment period is separate from your review period. It tells you when your annual fee is due.

A payment period is every 12 months from:

• the date your company incorporated (newer companies)
• the date you last paid the annual fee (older companies)

You only have to pay the annual fee with your first confirmation statement in the 12 month payment period. You can then file as many confirmation statements as you want in this payment period.

A new fee will be due when your company gets to the anniversary of your 12 month payment period.

Why is the Confirmation Statement Important?

Submitting your Confirmation Statement is not merely a bureaucratic hurdle, it’s a legal requirement under the Companies Act 2006. Failing to file it on time can lead to a range of unwelcome consequences, including:

Late Filing Penalties: Companies House imposes financial penalties for late submissions, and these can escalate the longer the statement remains outstanding. These penalties are a direct cost to your business and can impact your bottom line.

Damage to Company Reputation: A failure to comply with statutory filing requirements can negatively impact your company’s public image. Potential clients, suppliers, and investors often check a company’s record at Companies House. Late or missing filings can raise red flags and erode trust.

Potential for Compulsory Strike-Off: In the most severe cases of persistent non-compliance, Companies House has the power to initiate the process of striking off your company from the register. This effectively dissolves the company, preventing it from trading legally. Reinstating a struck-off company is a complex and often costly process.

Legal Ramifications for Directors: Directors have a legal responsibility to ensure the company complies with its filing obligations. Failure to do so can lead to personal liability in certain circumstances.

Beyond the negative consequences of non-compliance, submitting your Confirmation Statement also serves a positive purpose. It ensures that the public register maintained by Companies House is accurate.

This transparency is crucial for fostering trust and confidence in the UK business environment as it allows stakeholders to access reliable information about the companies they are dealing with.

Why choose React Accountancy?

Here at React Accountancy, we provide trusted accountancy services to start-up, established and multi-national businesses across a diverse range of industries.

From the moment you get in touch, our approachable, friendly and professional team will go above and beyond to ensure that you receive the right advice, support and accountancy solutions for your business.

All of our team has years of experience in providing accountancy services that support your business including complex financial issues.

Get in touch today for further information about any of our services.

You can reach us on 01914324110 or contact us via email using info@reactaccountancy.co.uk