In this comprehensive guide, we’ll explore the ins and outs of the Confirmation Statement, shedding light on its purpose, the information it contains, and why companies need to prioritise its submission.
What is a Confirmation Statement?
A Confirmation Statement is a mandatory document that limited companies, including private and public companies, must file annually with Companies House in the United Kingdom. Formerly known as the Annual Return, the Confirmation Statement serves as a snapshot of essential company information, providing an overview of the company’s structure, officers, shareholders, and registered address.
As of 5 March 2024, companies must include a declaration that their intended future activities are lawful, along with an email address for correspondence.
Key Information in a Confirmation Statement:
- Company Details: This includes the company’s registered name, number, and registered address.
- Officers: The Confirmation Statement lists the names and details of the company’s directors, company secretary (if applicable), and other key officers.
- Shareholders: Details about shareholders, including the types and numbers of shares they hold.
- Share Capital: Information about the company’s share capital, such as the total number and nominal value of shares issued.
- SIC Code: The Standard Industrial Classification (SIC) code, indicating the company’s primary business activity.
- People with Significant Control (PSC): Information about individuals or entities with significant influence or control over the company.
- Registered Email Address: Required from March 2024, for Companies House use only.
Why is the Confirmation Statement Important?
- Compliance: Submitting an accurate Confirmation Statement is a legal requirement for all UK companies. Failure to file the statement can result in penalties and, in extreme cases, the dissolution of the company.
- Transparency: The Confirmation Statement promotes transparency by ensuring that up-to-date and accurate information about the company, its officers, and shareholders is publicly available.
- Regulatory Compliance: Companies House and regulatory authorities rely on the Confirmation Statement to maintain accurate records, allowing them to regulate businesses effectively.
How to File a Confirmation Statement
Filing your Confirmation Statement is straightforward, especially if done online. Follow these steps:
- Log into Companies House
Access the Companies House WebFiling service. You’ll need your company’s authentication code and password. - Review Your Company Details
Check that all information is accurate. If any details are outdated, you must update them before filing the statement.- Changes to directors, PSCs, or registered office address must be filed as separate updates before the Confirmation Statement.
- SIC code, share capital, and shareholder information can be updated within the statement.
- Complete the Form CS01
- Provide the required details.
- Include your registered email address if not previously provided.
- Pay the Filing Fee
- Online: £34.
- Paper Form: £62.
- Submit Your Confirmation Statement
Once submitted, you’ll receive confirmation from Companies House. Filing online is faster, with most submissions processed within 24 hours.
What Happens if the Confirmation Statement is Late?
Failure to file the Confirmation Statement within the required timeframe can lead to:
- Penalties
Companies House may impose financial penalties for non-compliance. - Company Strike Off
Persistent failure to file can result in your company being struck off the register. This means the company ceases to exist as a legal entity, and its assets become Crown property. - Damage to Reputation
Late filing can signal poor governance, potentially impacting relationships with investors, creditors, and customers.
To avoid these consequences, ensure timely filing within the 14-day window following the end of your review period.
What Happens If I Miss the Deadline?
Missing the deadline for submitting your Confirmation Statement can have serious consequences for your company. As outlined by Companies House, the UK’s registrar of companies:
“Your company must deliver a confirmation statement to us at least once a year, even if the company is dormant. Failure to do so could have serious consequences. If the registrar believes your company is no longer carrying on business or in operation, they may take steps to strike it from the register. Once struck off, the company ceases to exist, and its assets become the property of the Crown.
If your company is operational, the company, its directors, and other officers could face prosecution because they are responsible for ensuring the confirmation statement is submitted on time. Failing to do so is a criminal offence.”
In essence, while there’s no direct financial penalty for submitting a Confirmation Statement late, the risks of non-compliance are severe:
- Strike Off: Companies House could begin the process of striking your company off the register if they believe it’s no longer active.
- Asset Seizure: If your company is struck off, all its assets become bona vacantia (Crown property).
- Criminal Prosecution: Directors and officers could face legal action for failing to comply, as this is considered a criminal offence under the Companies Act 2006.
To avoid these outcomes, file your Confirmation Statement on time or seek professional assistance to manage your deadlines effectively. At eAccounts, we offer proactive reminders and filing services to keep your business compliant. Let us handle the paperwork while you focus on growing your business.
How Much Does a Confirmation Statement Cost?
The cost of filing a Confirmation Statement depends on the method used:
- Online Filing: £34 per review period.
- Paper Filing: £62 per review period.
Important: You only pay once per 12-month payment period, regardless of how many statements you file during that time.
What is the Review Period for a Confirmation Statement?
Your review period determines when the Confirmation Statement is due. It begins on either:
- The date your company was incorporated.
- Or the day after your last Confirmation Statement was filed.
You must file the statement at least once every 12 months, and submissions reset the review period.
Example:
- Company incorporated on 1 January 2022.
- First review period ends on 31 December 2022.
- If a statement is filed early (e.g., 30 September 2022), the new review period starts on 1 October 2022 and ends on 30 September 2023.
What Changes Can You File with the Confirmation Statement?
Certain updates can be made directly through the Confirmation Statement:
- SIC Code changes.
- Updates to share capital.
- Shareholder changes or transfers.
- Trading status of shares.
- PSC register exemptions.
Other updates, like changes to directors or registered office addresses, must be submitted separately before filing the statement.
Key Updates for 2024
From 5 March 2024, Companies House introduces two key requirements:
- Future Activities Declaration
Companies must confirm that their intended future activities are lawful. - Registered Email Address
All companies must provide a valid email address for correspondence, which will not be displayed on the public register.
Why Choose eAccounts for Filing Your Confirmation Statement?
Filing a Confirmation Statement can seem straightforward, but ensuring compliance with all requirements, especially as regulations evolve, requires expertise. At eAccounts, we offer:
- Expert Guidance: Our experienced team ensures your statement is accurate and timely.
- Hassle-Free Filing: Leave the administrative burden to us.
- Comprehensive Support: We assist with updates to your company’s records, including officers, PSCs, and SIC codes.
Conclusion:
The Confirmation Statement is a fundamental document that underscores the transparency, accuracy, and regulatory compliance of companies in the UK. By diligently submitting this statement annually, businesses demonstrate their commitment to operating within legal frameworks, ensuring transparency in their operations, and contributing to a trustworthy corporate environment. Prioritising the timely and accurate submission of the Confirmation Statement is not only a legal obligation but also a testament to a company’s integrity and adherence to good corporate governance practices.
For more information about the confirmation statement, please get in touch today! Click one of the buttons below to either ‘Get a Quote’ for your business OR ‘Book a Meeting’ with one of our experts!
