Just like your annual tax return, confirmation statements are a fact of life if you’re involved in a limited company or a limited liability partnership in the UK.
But what exactly is a confirmation statement? Why do they need to be completed, and who needs to fill them in? And more importantly, how do you file a confirmation statement?
If you’ve recently started a business or you just want to brush up on the facts, keep reading to learn all about confirmation statements.
Confirmation Statements: Key Facts
Confirmation statements were first introduced back in 2016 in replacement of the annual return. It’s something that all limited companies and LLPs (limited liability partnerships) that are registered in the UK are required to complete and file a confirmation statement to the Companies House every twelve months.
It’s usually completed and sent off to the Companies House on the anniversary of the business’s creation, which gives the Companies House the relevant information about the ownership and management of the company.
The confirmation statement is separate from the company Corporation Tax Return and the business accounts, and can’t be sent in replacement. Instead of having information on accounts, it focuses more on information about your company and the management. It’s a way of streamlining the way you report information about your business.
It is a way of ensuring that all the information that the Companies House has about your business is relevant and up to date. This is why they are completed every year – even if the company is currently dormant.
Even if nothing in your business has changed, it’s still necessary to send a confirmation statement or ‘check and confirm’ that the existing details they have on your business are correct.
Why Complete a Confirmation Statement?
The reason that you need to complete and send a confirmation statement every 12 months is to provide the Companies House with up to date information or notify them of any changes to your business since the last statement was provided.
It’s a much more straightforward form than your annual return – and if there have been no changes, you simply have to double-check that everything is correct and not complete the form all over again.
If any information about your business that’s on record is out of date, then be sure to update this before completing and filing the confirmation statement.
Who Has to File a Confirmation Statement?
It’s the role of the company director to ensure that all documents are filed correctly and on time. This means that if you’re a director, it’s your responsibility to ensure that the confirmation statement is completed and filed accurately and by the deadlines.
Even if this task is appointed to somebody else to complete, the responsibility is still in the hands of the director – and it is the director that will face the legal consequences if completed incorrectly.
It’s a legal requirement to complete a confirmation statement – and if this isn’t completed, it classes as a criminal offence. In a worst-case scenario, the company can be removed from the LLP (Limited Liability Partnerships), and the directors can be prosecuted or disqualified.
Even if the company is dormant, it’s still necessary to file a confirmation statement every twelve months.
How Do I File a Confirmation Statement?
Completing and filing your yearly confirmation statement is a streamlined and simple process, and doesn’t take up much time at all.
The quickest and easiest way to file your confirmation statement is by using the HMRC website and sending it directly to the Companies House.
Completing your confirmation statement online is a great way of saving time. You can add additional information to the form and update aspects such as your statement of capital, shareholder information, trading status, and your SIC code (standard industrial classification).
However, there are costs associated with completing your confirmation statement. It’s cheaper to file your confirmation statement online, costing just £13. However, if you want to file your confirmation statement to the Companies House by post in paper form, then it will cost £40.
If you need assistance with tax returns and personal taxation, we can help you.
