Company Annual Returns Are No More

Since 30 June 2016 all companies and LLPs have been required to file an annual “confirmation statement” instead of an annual return. This requirement has applied to all trading and dormant companies and LLPs.

In simple terms, the confirmation statement confirms that the company and LLP data recorded at Companies House is accurate and up-to-date. An annual fee is payable to Companies House when filing the confirmation statement.

On the face of it, it appears there may be little difference between the information a company would submit under the annual return and that which is required in the confirmation statement. However, there are main differences to be noted:

  1. Reduced filing period – Companies and LLPs were allowed a period of 28 days from the due date of the annual return to file it with Companies House. This period has been reduced down to 14 days for the confirmation statement. After this time the company may no longer be considered to be in good standing.
  2. Filing Dates – Whilst annual returns had fixed filing dates, companies and LLP’s may now make a confirmation statement at any time of the year, however no longer than 12 months may elapse between confirmation statements.
  3. Additional information – a Person of Significant Control Register (PSC Register) noting all Persons with Significant Control will need to be filed alongside the confirmation statement. A Person with Significant Control will be anyone who meets one or more of the below conditions:
  • Own more than 25% of the business shares
  • Hold more than 25% of the business voting rights
  • Hold the right to appoint or remove the majority of directors
  • Have the right to, or actually exercise significant influence or control over the business
  • Hold the right to exercise or actually exercises significant control over a trust or company that meets one of the first 4 conditions.

How we can help

Should you need expert legal advice regarding any of the above or indeed any other corporate or commercial law matters, please contact Paul Westwell at pwestwell@bromleys.co.uk or telephone 0161 330 6821.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.