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What Is A Confirmation Statement?

What Is A Confirmation Statement?

A term that’s often heard while you navigate the world of business is a confirmation statement. Essentially, a confirmation statement is an important document that both limited companies and  limited liability partnerships (LLPs) based in the UK must file annually with Companies House.

If you’re running a business or involved in the corporate world, you must have a clear understanding of what a confirmation statement is. To find out more about confirmation statements, continue reading.

 

Understanding What a Confirmation Statement is

A confirmation statement is a mandatory document that must be completed. As discussed, you must file your confirmation statement every 12 months. Back in 2016, confirmation statements were introduced in place of the annual return.

Typically, confirmation statements are to be completed on the anniversary of the date your business was formed. The statement itself will inform Companies House of all of your key company information, including ownership and management.

It’s important to note that a confirmation statement is different from the company corporation tax return and business accounts, and can’t be sent as a replacement.

Put simply, a confirmation statement offers you a streamlined way to report your company details, mainly focusing on the overall management of your company and any vital information that Companies House needs to know about.

It can be challenging to gather any relevant information regarding your business and send it to the right places. A confirmation statement allows you to update Companies House with crucial business information, and the statement itself ensures that all the information that Companies House has about your business is fully correct and up-to-date.

 

Why Should You Complete a Confirmation Statement?

Perhaps you’ve changed your company’s registered office address, people with significant control of your business have changed, or you’ve decided to change your business name. If this is the case, Companies House must be informed.

Additionally, you’ll also be able to provide extra information if there have been any changes to the capital trading status of shares or general shareholder information, to name a few. You must complete your confirmation statement filing on time, and if you miss the filing deadline, you could face an array of negative consequences.

You can complete your confirmation statement online to notify Companies House of any changes to your business since your last confirmation statement date. If you’re unable to complete your statement update online, you can fill out a Companies House form.

To complete your confirmation statement online, it costs £13. However, to send your statement in paper form, you’ll be charged a higher amount of £40.

 

Who Should File a Confirmation Statement?

It’s up to the company director to ensure all documents are filed correctly and on time. So, if you’re a company director, you’ll need to make sure your confirmation statement is completed by the deadline.

Although it’s possible to appoint the task of completing a confirmation statement to someone else, the responsibility remains in your hands, and it’ll be you who faces the legal consequences if it comes back that your statement has been completed wrong.

You should complete your confirmation statement. Not only is it a legal requirement to complete your statement, but failure to do so is classified as a criminal offence. In the worst-case scenario, your company could be permanently removed from limited liability partnerships (LLPs), with the chance of directors being either prosecuted or disqualified.

 

Are You in Need of Legal Expertise?

Here at LJS Accounting Services, we offer an expert service that’s second to none. Our team are both driven and hard-working, assisting clients who seek professional advice, support, and guidance from trusted legal specialists.

Having been in business for over 10 years, we have a wealth of knowledge and experience in the industry. Our happy clients have praised our hard work, often returning to utilise our additional services.

If you’re new to the world of business, we encourage you to utilise our tailored start-up services, which help companies better understand the crucial aspects of starting and running a business. We offer a fast-track service that helps open your business bank account rapidly while avoiding delays and stress.

So, whether it’s expert start-up advice or assistance with tax returns, you’ll be glad to know that we can help. To find out more, please feel free to contact us today.

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