If you’re a planning on forming a limited company, you need to be aware of legislation that came into force last Thursday, changing both how you form a company and how you file information.

Confirmation statements

Since the 30th June you no longer have to complete an annual return with Companies House, but instead file an annual confirmation statement.

Confirmation statements serve a similar purpose to annual returns but there are a few differences to note. Rather than providing a snapshot of your company from a specific time, you’ll be required to confirm the information Companies House has is correct and to review any changes.

You can update your shareholders’ information, your SIC code or the statement of capital with your confirmation statement. However, for any other changes, such as a new registered office address, you will need to complete a separate form but submit it at the same time as your confirmation statement. You will also need to submit a people with significant control (PSC) register at the same time (see below).

You can file your confirmation statement online to make the process easier. The confirmation statement will also still cost the same amount as an annual return; £13 for filing online, £40 for filing a paper statement.

PSCs

Since the beginning of this tax year you should have been keeping information of your company’s PSCs. As of 30th June you are required to send that information to Companies House along with your confirmation statement.

A PSC is someone who holds more than 25% of a company’s shares, more than 25% of a company’s voting rights or has the right to appoint or remove the majority of directors.

Rarer instances of PSCs are people who have the right to exercise or do exercise significant influence control or where a trust or firm meets on of the three statements above, as anyone with influence over that firm are considered a PSC of the company.

When you submit your PSC register you must include; name, date of birth, nationality, residential address and service address. You should confirm all these details with your PSC before including them in your register. You should also specify the date they became a PSC and which scenario applies to them.

If you don’t have any PSCs you must still complete a PSC register, indicating instead that you have no PSCs or that you are waiting on details.

SIC code

Before 30th June 2016 it was not a requirement for company directors to provide a SIC code until they filed an annual return. However now directors will have to provide at least one SIC code to explain what kind of business activity a new company will be doing.

If the company will have more than one type of business activity you’ll be required to have a SIC code for each activity. If you’re not sure about the appropriate SIC code for your business you can instead provide a written description of the company’s business activity.

Got questions? Feel free to ask one of our accountants a question for free here.

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

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