What is a Companies House Confirmation Statement?
The confirmation statement (CS01) was introduced in 2016 as a replacement for the Companies House annual return (AR01); it intends to serve the same purpose while simplifying the process for both the filers and the authorities.
If you’re a business based in the UK and registered with Companies House, you need to file your confirmation statement online. The statement is intended to provide information related to the company, i.e. information about its shareholders and company directors.
It helps Companies House track any changes in the organisation since the last filing. Similarly, it provides limited companies with the opportunity to keep their records updated by reporting any changes.
How can you file a Confirmation Statement?
Companies House allows a 12-month ‘Review Period’ in which companies can file their confirmation statements. To file the confirmation statement, you need to ascertain the information that has to be reported. Even if there are no changes, you must confirm that your company information is correct.
What Information Should Be Added Or Updated?
Before filing a confirmation statement, you need to inform Companies House about any changes in:
- director or secretary information
- people with significant control (PSC)
- company’s registered office
You must report the changes in the company’s details to companies house before filing a confirmation statement, using a confirmation statement you can report on any changes in
- The SIC code that is Standard Industrial Classification code
- Names of company shareholders
- Share holding details of each shareholder
- Company’s statutory registers’ address (Single Alternative Inspection Location)
- Statement of Capital
- trading status
- Numbers of shares issued
- Exemption from keeping a (PSC) register
How can one file a confirmation statement, and what are the charges associated?
The confirmation statement can be filed online as well as manually through paper, with the online platform being user friendly. Charges to file vary with the medium, i.e. £13 for online submission and £40 for manual submission. These charges are paid once for twelve months irrespective of the number of filings made in that review period.
Is there a specified time to file a Confirmation Statement?
You must file a confirmation statement within 14 days of the end of your 12 months review. It can be from the date of company incorporation or from the date of the last filing for companies that have already filed one.
What is the Review Period?
The period allowed by Companies House for organisations to file a confirmation statement is called a ‘review period.’ The review period is 12 months, and for a new organisation, it starts from the day of incorporation, i.e. if a company was incorporated on the 1st of January 2021, its review period would end by 31st December 2021, while you must file your company’s confirmation statement by 14 January 2022.
For companies that are not newly incorporated, the review period starts from the date of the last confirmation statement filing, i.e. if an organisation has filed its first confirmation statement on 1st June 2021, its review period will end by 31st May 2022.
A company can file as many confirmation statements as needed and can also make its confirmation statement early; the review period will be redefined with each filing, i.e. for the coming 12 months. Whereas the company’s payment period starts with the very first payment and only gets renewed after the 12 months of the last payment.
Can you file the confirmation statement once the due date has passed?
A 12-months review period seems to be a considerable time to meet an obligation but, in case if you were unable, for some reason, to fulfil your obligation to file, an additional window of 14 days is given for late filers, i.e. if your 12 month review period is ending on 31st December 2020, you still have till 14th January 2021 to file your confirmation statement.
What if you don’t file a confirmation statement?
Inability to file a confirmation statement within 14 days, once the review period ends, can result in two material repercussions. Criminal proceedings can be initiated against your company along with registration being cancelled. The more problematic scenario is the reputation damage that might follow due to the notion of being an ‘irresponsible company as corporate filing history can be accessed by the public and is visible on companies House listings. It might be possible to get past safely from the former, but the latter may become a case of irreparable damage to company goodwill.
Can you outsource your Confirmation statement preparation and submission?
A company can outsource its confirmation statement preparation and submission to a competitive accounting firm. This will relieve the company’s workforce to pay attention to other important matters, such as strategic tasks and long term goals, without stressing over your Confirmation Statement.
Video: Handling Companies House Confirmation Statement Requirements
What if your company is no longer trading?
It is a common misunderstanding that if a company is not trading anymore, it is absolved from following all the legal obligations. However, this isn’t true in the case of a confirmation statement; its filing stands obligatory for even the companies that have sealed operations and are lying dormant as c.
The filing rules are the same for dormant companies, and the reason it is a compulsion for such companies to file is that because they might have undergone changes too, such as in their structure, change of the registered office address, officers like directors, and changes of the company’s registers, etc.
Any organisation that aspires to grow and rise through the ranks can’t afford to be irresponsible, either morally or legally. Most companies still show lapses because of administrative burdens. For some, especially startups, these burdens can be cash flow problems or lack of time.
To avoid any undesirable situation, the practice should be to seek advice from professional accountants who can keep a check on legal or any other secretarial issues to keep the company insulated from any legal pitfalls.
Jinesh is a Senior Business Accountant, with a masters in Finance from Westminster University, and specializes in tax and accounting for small to medium businesses with a turnover less than £ 3 Million.
He specialises in helping creative businesses understand and manage their accounting and tax needs and obligations.
As accounting ecosystems evolve, their potential to add value also grows. This has increased the focus on digital solutions to tackle complex business problems. Jinesh helps businesses see the opportunity in this and helps businesses become more efficient and increase performance, using the right solutions.
Some of the key things he focuses on are:
- Helping businesses gain insights from their business data
- Providing complex tax and accounting solutions
- Helping businesses prepare for complex industry developments and changes