Changes to the annual return for Companies House from June 2016

Monday 11 July 2016

If you run your own small business, you've probably heard that the way you make annual returns to Companies House has changed.

Since June 30th 2016, the annual return has been abolished in favour of a confirmation statement. But what does this mean, and how can you ensure your company complies with the new system?

The confirmation statement explained

The confirmation statement essentially serves the same purpose as the Annual Return did and is used to update information to Companies House. However, instead of providing new details each year, you'll need to check and review the information already there and see if there are any changes that need to be made.

When you submit your first confirmation statement, you'll need to include any information in your people with significant control (PSC) register. This normally includes anyone within your company who has 25 per cent of shares or voting rights, or has the right to appoint or remove the majority of directors.

All limited companies need to complete a confirmation statement and it will cost the same as the annual return: £13 if you do it online or £40 if you complete a paper version. This will only have to paid once a year and means you can file as many confirmation statements as you need to during that 12-month period and not be charged again.

When you get to the end of the year, you will get a reminder to pay the fee either online or from a letter to your company.

What to include and when to file

A confirmation statement will include details about your shareholders, the SIC code, and the statement of your capital. Other changes, such as changing your business address, will need to be included on a different form but sent alongside your confirmation statement.

As of June 30th 2016, you need to complete a confirmation statement instead of an annual return. Your first will be due a year after you last filed your annual return, though the grace period has been reduced to 14 instead of 28 days.

Of course, changing the way you update Companies House can be a hassle. Outsourcing the management of your finances to a professional accountancy firm like Brookson can take a huge weight off your mind, allowing you to focus on your business.

By Victoria McDonnell

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