As a business owner, you have many responsibilities to keep your business compliant, especially if you’re a UK limited company or a limited liability partnership. As a business owner, you’ve likely come across the term ‘confirmation statement’ before. With so many responsibilities, it’s easy to feel overwhelmed by what you need to do to stay compliant, but filing a confirmation statement is actually quite straightforward.
At Tax Driven Accountants, we have helped countless businesses remain compliant and file a confirmation statement. Keep reading to learn what a confirmation statement is and the consequences of filing it late.
What is a confirmation statement?
A confirmation statement, also known as a CS01, is an official annual document that UK companies and limited liability partnerships must file with Companies House. This document verifies that the public record information held about the business remains correct and up to date.
Who needs to file a confirmation statement?
Every UK limited company and limited liability partnership must file a confirmation statement every 12 months. A common misconception is that dormant or non-trading businesses don’t need to do this, but this is false; they still need to file a statement with Companies House.
If you fail to file a confirmation statement, there will be consequences.
What information it covers
When submitting a confirmation statement, you must ensure it includes the following information:
Company officers
In your confirmation statement, verify the full names, service addresses, nationalities, and dates of birth of all active officers. This includes directors and secretaries, and confirms that you have completed the relevant identity verification for all officers.
Registered details
Companies House wants to ensure that all previously submitted information is still up to date. You will have an address for statutory mail sent to the business, as you must receive official communications from Companies House; if the address provided is incorrect or outdated, there could be consequences.
People with significant control
As part of your confirmation statement, you need to confirm individuals or legal entities owning over 25% of shares or voting rights, or those exerting significant influence.
You must confirm their full name, date of birth, nationality, residential address, service address, and the nature of their control, and state whether anyone with significant control has left.
Business classification
You must provide your five-digit Standard Industrial Classification code, which accurately describes your primary business activities. If your business spans multiple industries, you can list up to four codes.
Share capital and shareholders
If your business is a company limited by shares, you are required to provide a full statement of capital as part of your confirmation statement. This statement should include the total number of issued shares, their aggregate nominal value, the currency of the shares, the rights attached to each class of shares, and the full names of all shareholders.
Lawfulness statement
You must file a declaration confirming that all current and future company activities are and will remain fully lawful.
When it’s due
Although there is no exact date to send your confirmation statement, it is due within 14 days of its 12-month end-of-month review. If you’re not aware, the 12-month review period ends on the anniversary of your company’s incorporation date.
How to file a confirmation statement
You have two options for submitting your confirmation statement: online or by post. We’d recommend filing online, as this is faster and less expensive.
You can file your confirmation statement online through Companies House. The process is quite simple and requires the following steps:
Log in
Sign in to your Companies House account using your company authentication code. You should have received these details when you initially incorporated your company.
Review details
Review the pre-filled information, including your registered office address, directors, SIC codes, shareholders, and persons with significant control (PSC). If the information is incorrect or there have been changes in your business, it’s essential that you update your details before submitting the statement.
Confirm lawful activities
You should then check the required statement confirming your company’s future activities are lawful.
Pay and submit
If all of your information is correct, you should then pay the online filing fee and submit the form within 14 days of your review period ending.
If any of these steps feel confusing, or you need further support and clarification, an experienced accountant can help you stay compliant and file your confirmation statement correctly. This is especially true if you’re a small business, where these initial legal requirements might feel overwhelming.
What it costs
The cost of filing differs depending on whether you file online or submit a CS01 paper form via post. Filing online costs £50, while filing by post costs £110.
What happens if you file late or don’t file
Failing to file your confirmation statement on time is treated as a serious matter. A late confirmation statement carries the risk of your business closing down entirely. On the day your statement is overdue, your company status will change to ‘overdue’ on Companies House, meaning any clients or potential investors can see your non-compliant status.
Companies House will send a warning notice to the directors, giving a final deadline to file. This tends to be a deadline of 28 days. If this final notice is ignored, a compulsory strike-off notice is officially published in the London, Edinburgh and Belfast Gazette. This serves as a public 2-month warning that your company is about to be dissolved.
Once this two-month warning period has passed, the company is formalised as dissolved and ceases to exist; all company assets and bank accounts are frozen and automatically become Crown property.
Is it a Criminal Offence?
Under the Companies Act 2006, failing to file is considered a criminal offence. Companies House can prosecute the company and its individual directors, which could lead to personal fines of up to £5,000 per director and potential disqualification.
Never miss a deadline with Tax Driven Accountants
With all of the information above in mind, you should now understand just how important it is to file your confirmation statement on time. We understand how demanding running a business can be, and with so many responsibilities on your plate, it’s only natural that some are missed, but filing a confirmation statement should always be a priority.
Need help understanding your business responsibilities, or support with essential financial documentation? Get in touch with Tax Driven today to learn how we can help.
