All UK limited companies have been required to complete an Annual Return every twelve months and to submit this completed return to Companies House by the due date. This is separate to the Annual Company Accounts which also need to be submitted to Companies House on an annual basis. The Annual Return contained information regarding company shareholders, shares issued by the company and the main trading activity of the company. As of 30 June 2016 what is now called the ‘Confirmation Statement’ will need to be submitted to Companies House instead of submitting an Annual Return.
What does this mean for me and my limited company?
Not a lot. The Confirmation Statement is in fact very similar to the Annual Return that most of us are familiar with and the Confirmation Statement actually serves the same purpose as the now defunct Annual Return. The subtle difference between the two is a matter of timing. Previously the Annual Return declared a snapshot of the company at a point in time whereas the Confirmation Statement will be used to check and ‘confirm’ that the information held by Companies House is complete and accurate.
The only real change is that information relating to people with significant control (PSC) over the company will need to be added to the Confirmation Statement. A PSC is defined as anyone who:
1. Holds more than 25% of the company’s shares
2. Holds more than 25% of the company’s voting rights
3. Has the right to appoint or remove the majority of directors
The vast majority of our clients and typical single-director limited companies are unlikely to need to make any changes as they are unlikely to be affected by the PSC requirements.
If we currently complete and submit your Annual Return we will continue to complete and submit your Confirmation Statement, if you are happy for us to do so, for a one-off fee of £30 (fully inclusive). The fee charged includes the Companies House submission fee of £13.