From 30th June 2016, as part of the Small Business Enterprise and Employment Act 2015, UK companies and limited liability partnerships (LLPs) are no longer required to file an annual return. Instead they will need to file a new document called a confirmation statement, which contains details of the company’s directors and shareholders.
Key differences – annual return vs confirmation statement
While both documents serve a similar purpose, the biggest difference is that, rather than providing new details at a specific date each year, companies will now “check and confirm” the information placed on the public record by Companies House.
Another difference is the reduced administrative burden when there are no changes to report. The annual return had to be submitted each year with a full list of information regardless of whether any changes had changed. Now, if there are no changes to report, you can simply mention that in a note on your confirmation statement.
The intention of the confirmation statement is to simply the legislation. However it’s not that simple. You will need to include any information regarding people with significant control (PSC) within the firm. Mainly individuals who are not directors but who:
- own at least 25% of the business
- have the right to appoint or remove the majority of directors
- control more than 25% of the company’s voting rights
- can exert significant influence or control over the company
- can exert significant influence or control over a related trust or partnership
Another key difference
- time period: companies will have 14 days from the due date to submit their confirmation statement. With annual returns you used to have 28 days.
It will cost £13.00 to e-file a confirmation statement and £40.00 to file a paper version. Sole traders and partnerships that are not incorporated at Companies House won’t be affected by this change.
If you have any questions regarding confirmation statements, please visit gov.uk or feel free to #AskAlan on Twitter @AlanMcCappin