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Missing information, incorrect data and late filings to the Companies House register can have a detrimental impact on a company, not only in terms of costs but also in terms of lost opportunities.
If the Registrar of Companies at Companies House has reasonable grounds to believe that a limited company is no longer trading, he or she can begin the process of forcibly removing it from the Companies House Register.
In a process known as compulsory strike off, a third party such as Companies House will petition for the company to be removed from the register, typically for reasons of non-compliance.
This may include:
- Failing to submit your annual confirmation statement (Form CS01)
- Failing to file accounts on time
- Failing to notify Companies House about a change to your official registered office address
- Failing to provide accurate or correct company data
This can action in a short timeframe as fast as four months from the initial warning letter. Once a limited company has been removed from the register, it will cease to exist as a business entity.
In addition to having the power to completely close your business, incorrect submissions of information can lead to a whole host of other issues which can impact your finances, these include;
- Valuation of business impacting share prices.
- Share capital structure changes being void.
- Denied credit applications due to missing data.
- Incorrect or missing data casting doubt over your company’s integrity or authenticity.
- Lost business opportunities due to wrong contact details on register.
- Incorrectly filed documents on buybacks can lead to shareholders not being shareholders.
- Lost customer trust due to inaccurate information on register.
Correcting unnoticed mistakes can lead to costly tax implications and legal fees. Don’t leave it to chance, ensure you fully understand your responsibilities, duties and how to submit your annual confirmation statement.
Check out our Confirmation Statement Q & A below.
Confirmation Statement
It is a legal requirement for information to be filed at Companies House and for statutory books to be created and maintained, it is also a legal requirement (and generally just good corporate governance) to ensure, where possible, that this information is accurate and up-to-date. There are advisors willing, and more importantly able, to help you with this. There is no reason to lose an opportunity or suffer additional costs due to errors in process and a discrepancy filled Companies House register.
Introduced in 2016, the annual confirmation statement is a simplified format of the annual return serving the same purpose; it confirms the information Companies House holds about your company is up to date.
All companies registered in the United Kingdom must deliver a confirmation statement to Companies House at least once every 12 months, even if the business is dormant or non-trading.
What is the purpose of a confirmation statement?
The purpose of the confirmation statement is so that Companies House can verify that important data they hold on any given UK company is correct, accurate and up to date whilst ensuring they get notified of any changes.
If when the confirmation statement is due, any information help is incorrect or out of date, it is the company’s responsibility to update the data before or at the same time as filing the statement.
There is no need to enter previously filed information, if there have been no changes to report in the last 12 months you simply check, confirm and submit that statement.
How do I report changes using the confirmation statement?
You can report some changes to your company data on the confirmation statement, just like you could with the annual return. The information you can update includes:
· Shareholder details
· Standard Industrial Classification (SIC) code
· Statement of capital
· Trading status of shares
· Exemption from keeping a PSC register
All other information, such as amendments to the registered office and officers, must be reported separately using the relevant Companies House forms. You will need to file these forms and update the required information prior to filing your confirmation statement.
What if I don’t have any changes to report?
Even if you don’t have any changes to report, you will still have to file a confirmation statement to confirm to Companies House that your company details are correct. This is the main purpose of the confirmation statement.
Confirmation statement filing deadline
You have to file a confirmation statement at least once a year, no later than 14 days after then end of your 12-month ‘review period’.
You must file at least one confirmation statement every 12 months. Your 12-monthreview 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.
Example
You form a company incorporated on 1 September 2021
Your 12-month review period starts on 1 September 2021 and will end on31 August 2022
The statement date for your confirmation statement is 31 August 2022
The filing deadline is 14 days later, on 14 September 2022
Can I file a statement early?
Yes, 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.
Benefits of filing a confirmation statement early
1. Avoid busy business or personal time periods of the year
2. Can avoid delays in credit related business purchases (if ordering near the deadline)
3. Can bring filing dates in line with others so you do it all together
Who is responsible for filing a confirmation statement?
Directors have a legal responsibility to ensure that all statutory documents, including confirmation statements, are filed with Companies House by the necessary deadlines, even if these administrative tasks are delegated to a company secretary. In an LLP, designated members are responsible for filing confirmation statements.
Whilst there is no financial penalty for late filing, failing to deliver a statement is a criminal offence. To avoid serious consequences, you must file your confirmation statement as soon as you remember.
Not wanting to scaremonger, but if you fail to do this, you could be struck off and face fines of up to £3,000.
How do I file a confirmation statement?
Confirmation statements can be submitted to Companies House in one of three ways:
· By post using form CS01 or form LL CS01 for LLPs
· Online via WebFiling
· Through a certified accountant
It is advisable to file your confirmation statement online as it’s faster, simpler and cheaper. You’ll also benefit from automatic checks and pre-populated data.
Can an accountant manage this on my behalf?
Yes, at Blue Rocket Accounting, we offer an online Confirmation Statement Service, for just £120 (plus VAT). Remove the burden of organising this every year and let us manage this for you.
If you would like to find out more our confirmation statement service, get in touch via the website or call us on 01322 555442.
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