Accountants confirmation statement filing tips

Accountants confirmation statement overdue filing tips

WHAT IS A CONFIRMATION STATEMENT?THE DEFINITION OF A CONFIRMATION STATEMENT

The confirmation statement is an annual mandatory submission requirement for all the LLPs and limited companies. They have to file these confirmation statement documents at the Companies House every year.

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The submission requirements are slightly different for both types of entities, as mentioned above. For instance, if it is a company, the confirmation statement must include its directors’ and shareholders’ required information.

On the other hand, if you talk about LLPs, the confirmation statement must list all its members’ relevant details.

However, for both the LLPs and limited companies, the confirmation statement document also needs to mention the business’s registered office address, in addition to other information.

Earlier, these entities used to file the return at the Companies House annually. Mostly, they used to submit the said return on the anniversary date of the business’ incorporation. Now, the confirmation statement has taken the place of such annual returns.

Confirmation statement at companies house

The confirmation statement also provides critical business leadership statistics like the details they used to provide in their annual returns.

The statement document provides a yearly summary of its management and business owners. The confirmation statement submission requires payment of yearly filing fees along with all the details mentioned above.

Please note that this confirmation statement is a document that is entirely separate from the business accounts.

Similarly, it is also not to be confused with the company’s corporation tax returns.

SUMMARY OF WHAT IT INCLUDES:

* · The details of directors and shareholders (For Companies)

* · The list of members (for LLPs) * · Registered office address (For both companies and LLPs) SUMMARY OF ITS SALIENT FEATURES:

* · The directors or members file it annually, typically on the anniversary date of incorporation

* · Replaces the erstwhile annual return

* · It includes a summary of its management and owners

* · It requires payment of yearly filing charges

* · It is separate from Corporation Tax return or business accounts.

FREQUENTLY ASKED QUESTIONS (FAQS) Here are the two most important frequently asked questions about the mandatory submission of a confirmation statement to the Companies House every year.

Q. WHAT’S THE DIFFERENCE BETWEEN THESE TWO TYPES OF DOCUMENTS: AN ANNUAL RETURN AND A CONFIRMATION STATEMENT? ANS.

There are three critical differences between the earlier system of filing annual returns and the existing system of submitting a confirmation statement document every year.

1. TIME OF FILING THE DOCUMENTS Earlier, the companies used to file the annual returns on the date of incorporation. Now, the directors or members of a limited company or LLP have the flexibility to submit the confirmation document at any time. The only condition applicable is the time limit of 12 months and 14 days. They must submit the confirmation statement to the companies House within the set time frame of a little more than a year.

2. SUBMIT ONLY THE CHANGES DURING THE YEAR It is one of the most important differences between the two. Earlier, it was mandatory to file the annual return every year even if there was no change in the information. The directors or members of listed companies or LLPs had to report the same details every year, even when there was no change.

But in the case of confirmation statement, the company can now submit a simple note stating that there were no effective changes this year. It is now acceptable to present only the changes or a statement of no changes in the said period.

3. PERSONS WITH SIGNIFICANT CONTROL Finally, the confirmation statement stipulates the submission of a PSC list (persons with significant control). The persons in this list are those people who may not be the directors, but they may be having a minimum of one-fourth (25%) stake in the business. Earlier, there was no such requirement in the annual return.

Q. WHAT HAPPENS IF THE COMPANY FAILS TO FILE THE CONFIRMATION STATEMENT IN THE STIPULATED TIME? ANS.

As such, there are no penalties for the late filing of the confirmation statement. Still, if you fail to submit the confirmation statement to the Companies House, it may initiate legal action. The Companies House is free to take such legal action against the directors, and in extreme cases, it can also strike off the company name from its register.

Please note that they take such legal action only if the directors or members do not file the confirmation statement after the due date.

Gm Professional Accountants can help you file your confirmation statement.  We have offices located in London, Manchester  Birmingham and Essex.

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