Annual Return becomes a Confirmation Statement from June 2016

From June 2016, the annual return is being replaced. Instead, you will now have to file a ‘confirmation statement’ at least once a year. This change is part of The Small Business, Enterprise and Employment Act which contains a number of measures which received Royal Assent in March 2015 and represent significant change for companies. All companies will be affected in the same way, including what you file with Companies House.

You will need to ‘check and confirm’ the company information held by Companies House and inform them of any changes. There is a fee to pay with the confirmation statement and you can update the record as many times as you need to, but you will only be charged once a year.

For most companies, this will be the first time that the government requires that they be notified of people with significant control (PSC). A ‘PSC register’ needs to be kept from 6 April 2016. A PSC in anyone company is someone who meets one or more of the conditions listed in the legislation. This is someone who:

– owns more than 25% of the company shares
– holds more than 25% of the company voting rights
– holds the right to appoint or remove the majority of directors
– has the right to, or actually exercises significant influence or control
– holds the right to exercise or actually exercises significant control over a trust or company that meets one of the first 4 conditions

Companies already keeping a PSC register by 30 June 2016 will be required to submit this information with the confirmation statement. It is a criminal offence not to provide this information. There is much more in The Small Business, Enterprise and Employment Act and it is highly recommended that you become acquainted with it. For more information please click on the link below: