Starting a new business? Get 40% off our accountancy services for 3 months! 😎

What is a Confirmation Statement?

Limited companies and Limited Liability Partnerships (LLPs) submit confirmation statements to make sure their details at Companies House are correct and up to date. In this article we explain what information you need for your confirmation statement, how to submit it, and the deadline for sending one.

What is the purpose of a confirmation statement?

In essence, the confirmation statement is just that – it’s a statement which confirms the information Companies House has for your business is accurate. It’s not meant to be a way of reporting any changes in your company (which is a separate process).

Your confirmation statement must also include an email address which Companies House will use to contact you (although your email will not be shared on the public register).

What’s the difference between an annual return and a confirmation statement?

Confirmation statements have actually replaced the old-style annual return, though they do pretty much the same job. The newer confirmation statement also includes space to record information about ‘People with Significant Control’ (PSCs). This information identifies the people involved in the management and ownership of a company, and will be made publicly available on the Companies House register.

Registering a Person with Significant Control

It’s essential this information is reviewed regularly and always kept up to date, including:

It is also important to explain their position and standing in the organisation, and outline why they should be included as a Person with Significant Control (PSC).

Limited company accountancy services

From only £39.50 per month

Learn more

Do all businesses need to complete a confirmation statement?

All UK limited companies and Limited Liability Partnerships (LLPs) must file a confirmation statement even if the company or partnership is dormant.

When is my confirmation statement due?

You’ll need to submit a confirmation statement to Companies House at least once every 12 months, but filing can take place any time during your review period.

The review period for new companies that haven’t filed a confirmation statement before begins at the company’s incorporation date and finishes 12 months later.

For example

If a company is incorporated on 1st January, the review period ends on 31st December.

For more established companies which have already filed at least one confirmation statement before, the review period begins the day after your last confirmation statement was submitted and then ends 12 months later. You can send your confirmation statement early if you want to, which resets the clock so the review period ends 12 months afterwards. You can check upcoming reporting deadlines in Client Hub if you’re our client.

Use our interactive calendar to estimate your reporting deadlines

What if I don’t have any changes to report?

If nothing has changed since your last confirmation statement, then you don’t need to submit anything new and can simply ‘check and confirm’ the existing information held on public record.

What if my confirmation statement is filed late?

You must file your confirmation statement within 14 days of your review period ending. Don’t risk prosecution or being stuck off the register – file on time!

If you’re worried about missing the deadline to file your confirmation statement, it’s worth signing up for the Companies House email reminder service. It’s free to use and up to four people can receive a reminder. To make it even easier, you can also submit your statement using the link contained in the email. Sign up here.

How do I submit a confirmation statement?

The Companies House online service is the quickest and easiest way to complete your confirmation statement. Using this method also means most of the information on the form will be pre-populated, so you only need to check the details and edit any changes, rather than start from scratch.

If you would like to update any of the information Companies House holds for your company, you can do this in the ‘additional information’ section of the form online. It can be used for updating your:

You can check what information Companies House already has about your company using the Companies House service.

Is there a fee for filing a confirmation statement?

It costs £50 to file a confirmation statement online in any 12-month period. You’ll only ever pay the £50 fee once in a year, so filing another one in the same period won’t result in an extra charge. If you do decide to file a paper submission, the charge jumps to £110. It’s also more laborious without any of it being pre-populated – plus the trip to the post box!

Who is responsible for completing the confirmation statement?

Larger or publicly owned companies often have a company secretary who will file the confirmation statement on the company’s behalf.

If your company doesn’t have a secretary then any of the directors or another designated company member can file it instead.

In a Limited Liability Partnership (LLP) you’ll normally have a ‘nominated partner’ who takes care of the paperwork, but all of the partners share responsibility.

The most important thing is to file the statement with Companies House on time every year. Our short video explains about the obligations you have as the director of a limited company.
 

 

Filing your confirmation statement is a legal obligation and is not optional. There are serious consequences for directors, including fines and prosecution, if it’s not done. Failure to submit the statement on time might also cause the registrar to remove it from the company register. Remember, your accountant may file on your behalf – but it’s still ultimately your responsibility.

 
If you need guidance on any aspect of your company’s confirmation statement, we’re here to help! Get in touch to find out more about our wide range of online accounting services. You can also call 020 3355 4047, and get an instant online quote.

Is It Cheaper to Be a Sole Trader or Limited Company?

Factors such as how much you earn, and the industry you operate in are all at play when considering what type of structure is cheaper and whether you should be a sole trader or a limited company.

For some business owners, staying a sole trader is the simpler, cheaper option. For others, especially as profits grow, switching to a limited company can save real money because of the extra options for tax efficiency – becoming the natural next step.

Below, we’ll break down the costs of each structure and where the numbers tend to tip in one direction or the other, so you can see where you’d likely land.

What’s the difference between a sole trader and a limited company?

In legal terms a sole trader is the business, whilst if you run a limited company, you’re separate because the company is a different legal entity to you as the human person who owns it. This affects how you operate, your liability if things go wrong, and the taxes you pay.

For example, because a sole trader is the business itself, with no legal distinction, they pay Income Tax and National Insurance on their profits (even if they don’t actually take them out of the business for themselves).

A limited company, on the other hand, must submit a Company Tax Return each year, and pay Corporation Tax on its profits. You, as the owner, will only pay Income Tax and NI on the money you take from the business for yourself, but any profits left over still belong to the company, so you can’t just take them out freely like you could if you were a sole trader.

Instead, profits need to be taken out through the likes of dividends or by taking a salary – lots of limited company directors will pay themselves a mix of the two for tax-efficient purposes.

Online accountancy services

Get a quote and see how much you could be saving!

Get an instant quote

The cost of being a sole trader

Being a sole trader is common for freelancers and side-hustlers – usually because the tax reporting requirements are simpler and due to how cost-effective it is. Below are the costs you’d typical be expected to pay when operating as a sole trader.

Registration and legal fees

You can register to become a sole trader for free through the gov.uk website.

Income Tax and National Insurance

As a sole trader, you’ll pay Income Tax and National Insurance (Class 2 and 4) on your profit – that’s your turnover minus whatever you’ve legitimately spent running the business. Not on everything you bring in, just what’s left over.

Business insurance

Here’s the bit people don’t always think about – as a sole trader, there’s no legal separation between you and your business. If something goes wrong, your personal stuff, like your house, your car, your savings, could be on the line.

That’s why Public Liability or Professional Indemnity Insurance is worth budgeting for. It’s an extra cost, but it’s the kind of cost that earns its keep.

VAT

Once your turnover passes £90,000 a year, you have to register for VAT. That means more paperwork and more to stay on top of, so it’s worth knowing where that threshold sits even if you’re nowhere near it yet.

Accountancy fees

Setting up as a sole trader doesn’t cost a penny – but most people bring in an accountant to handle bookkeeping and their Self Assessment at year-end. Expect to pay somewhere between £150 and £600+ a year, depending on how complicated your finances are.

Equipment and tech

This one varies massively. For example, you could be a freelance writer who only needs a laptop and mobile phone, or you might be a tradesperson and need things like tools, protective gear, and even a van.

Marketing

A website, hosting, some advertising, a bit of branding – none of it’s optional if you want a steady stream of clients coming in. You may even hire someone to do this for you – which is ideal if you’re busy and unsure on how to get your business out there!

Expenses you can claim as a sole trader

We’ve mentioned things like equipment and tech – as well as marketing costs. All of which pile up – but the good news is anything you spend ‘wholly and exclusively’ for your business can be typically claimed back as an allowable business expense.

This basically means the cost of it is deducted off your profit – reducing the income tax you owe to HMRC. This covers things like rent on a business premises, utility bills, business insurance, the business share of your phone and internet, and accountancy or legal fees.

Learn more about claiming business expenses as a self-employed sole trader.

40% off accountancy services for startups

From only £39.50 £23.70 per month

Learn more

The cost of setting up and running a limited company

Whilst being a sole trader is cheaper in terms of set-up costs, running a limited company could save you more money in tax depending on how much you earn. We’ll go over what you might typically expect to pay when running one.

Registration fees

How much you pay to set up your limited company depends on how you do it. You have a few options:

Corporation Tax

Unlike sole traders, limited companies don’t pay Income Tax on their profits – they pay Corporation Tax instead.

For 2026/27, that’s 19% on profits up to £50,000, rising to 25% on profits over £250,000, with marginal relief tapering the rate for anything in between.

It’s worth getting your head around early, since this is the rate that does most of the heavy lifting when people talk about limited companies being ‘tax efficient’ because the rates are lower than Income Tax.

VAT

The rules here work the same as for sole traders – once your company’s turnover passes £90,000 in a 12-month period, you’re required to register for VAT. From that point, you’ll need to charge VAT on your sales, file VAT returns (usually quarterly), and keep digital records under Making Tax Digital.

Confirmation statements and annual accounts

These are running costs limited companies cannot skip.

Additional costs

These are the type of costs that are up to you – but well worth considering.

Expenses you can claim as a limited company

The principle is still the same as a sole trader where anything you claim needs to be ‘wholly and exclusively’ for business purposes – but claiming expenses as a limited company is a little different in some cases (and stricter) – for example for working from home or for mileage.

Find out the expenses you can claim as a limited company here

What’s cheaper: A sole trader or a limited company?

Starting out, sole trader wins hands down – it’s quicker, simpler, and costs next to nothing to get going. But if your profits start creeping up or if you have multiple sources of income then a limited company can start to pull ahead.

It mostly comes down to tax, which we’ve covered above – but it’s also about how much admin you’re willing to take on and, as the director, you’ve then got more room to be clever about how you take money out: a small salary plus dividends usually works out better than taking a salary alone, since dividends are taxed at a lower rate than income, and the salary itself reduces the company’s tax bill too.

Company or Sole Trader Tax Calculator

Compare your tax bill for different business structures

Tax Calculator
Learn more

The catch? All that flexibility comes with more admin. Limited companies mean stricter filing deadlines, more paperwork, and higher accountancy fees. So, if your income’s a bit up-and-down or hard to predict, staying a sole trader might still be the cheaper option once you factor all that in.

And if your business carries real risk – a trade where things can go wrong in a way which might impact your ability to pay bills – the liability protection alone might tip the decision in favour of a limited company, even if the business doesn’t earn as much.

Honestly, the best move is to get an accountant to run your actual numbers. They’ll be able to tell you the point where switching starts to pay off for you.

Need help deciding which business structure is right for you? We can help! Learn more about our online accountancy services. Talk to one of the team on 020 3355 4047, and get an instant online quote.

Things to Consider Before Making your Children Shareholders in your Limited Company

Passing shares to children is a common way for family businesses to plan ahead. It can help children build long-term assets and receive dividend income, while also making use of their tax allowances and lower dividend tax rates.

Like anything though, there are tax implications and other things to consider – which we’ll discuss in this blog.

Can I make my children shareholders of my limited company?

Yes – you can make your child a shareholder within your limited company at any age as there’s no legal minimum age for owning shares within the UK. But there are strict rules when it comes to income tax for minors, as well as potential Capital Gains Tax and other implications.

The tax implications of making your child a company shareholder

There are tax implications you need to be wary of before making your child a shareholder of your limited company. This includes things like settlement rules, Capital Gains Tax and Inheritance Tax.

The settlement rules

The settlment legislation is in place to make sure parents don’t give shares to their children as a way of paying out dividends without paying tax on them. So, while there no age restrictions for your child to become a shareholder, any gross income that exceeds £100 is taxable if they are under the age of 18.

This doesn’t mean your child will be filing tax returns at 10 years old (of course), so the responsibility is therefore passed onto you as their parent – which also means you become liable for their tax bill.

It’s definitely something to consider if your aim is to make both your company and personal finances more tax efficient by appointing a family member as a director.

If your child is over 18, they can use their own personal tax and dividend allowance, which could be more tax efficient.

Capital Gains Tax

It’s one thing to create news shares in the company, but if you transfer shares that you already own then HMRC treats it as a sale to a ‘connected person’ at market value. This means that if the shares have increased in value since you acquired them, you could trigger Capital Gains Tax (CGT) on any gain above your annual allowance.

Even if the transfer is a gift, you must calculate the gain based on the market value at the time of transfer, not the price you originally paid. Careful planning is therefore essential to avoid unexpected tax bills.

You can plan transfers around your CGT allowance or use trusts to manage the tax efficiently – but speaking to your accountant before doing this is strongly recommended.

Inheritance Tax

Gifting shares to your child is seen as a ‘Potentially Exempt Transfer’ (PET) for Inheritance Tax. If you pass away within seven years of gifting the shares, they could become a taxable part of your estate.

In the past, shares often qualified for full (100%) relief. But, from 6 April 2026, this is changing, and above certain thresholds, shares in private trading companies may be subject to an effective 20% inheritance tax rate.

Limited company accountancy services

From only £39.50 per month

Learn more

Legal and operational considerations

There are a few legal and operational things you need to take into consideration before you go ahead and make your child a shareholder of your limited company. We’ll outline some of them below.

Articles of Association

Some companies forbid minor shareholders – so it’s important you go through your Articles of Association so you know where you legally stand. If this is the case, you may need to wait until your child is over the age of 18.

Managing who can make decisions or control the company

Shares often carry some sort of responsibility or power, such as giving the shareholder the right to vote on decisions for the company, receive dividends, and in some cases even cancel share agreements.

Your child might not be ready for this sort of thing, so you have a few options. You could appoint yourself as a sort of custodian, so even though you’re not the true owner you can make decisions until they’re old enough, whilst the child benefits. This means you can’t just treat those shares as your own – you must act in the best interests of the child.

Another option is to issue a new type of shares which permit the child to receive dividends without having any voting rights.

Putting things properly in place helps keep decision-making clear and prevents situations like a child blocking company decisions or, if they’re under 18, selling shares to someone outside the family.

Stock transfer and filing

It’s important you understand how to transfer shares over to a child when it comes to the operational side of things. You’ll need to do this by completing a ‘stock transfer form’, updating company registers and notifying Companies House (usually through your next confirmation statement).

Here’s a table checklist for when you begin to transfer shares to your child:

What you need to do Why you need to do it
Review the Articles of Association To ensure the company’s rules allow the transfer
Determine the value of the shares To establish what the shares are worth
Complete a Stock Transfer Form (J30) You’ll need to fill in the details of transfer (this includes the number/class of the shares and the name of the transferor (you) and the transferee (the child)
Check if Stamp Duty is due Stamp Duty is unlikely when the transfer is a gift but you may still need to complete the form anyway, and send it to HMRC for certification depending on the value
Update records The directors need to approve the transfer, update the company’s Register of Members, and issue a new share certificate
Companies House The transfer will need to be reported on your next confirmation statement

You can create share transfer restrictions, too. For example, you can add rules that stop shares from being transferred to minors and only allow transfers to spouses or children, so ownership stays in the family.

Exit strategy

It’s useful to think about what happens if (for example) your child wants to sell their shares at some point, or if the business needs to raise capital. You might transfer or issue shares with the rule that they can only be returned to the company, but it can get quite complicated so it’s well worth having a chat with your accountant!

Education and responsibility

It’s important you ensure your child understands their role, responsibilities, and the value of their ownership.

Can my child become a director of my limited company?

Children cannot become directors until they are 16 years old – but you can give them significant shares within your business in the meantime.

Are there any alternatives?

Yes – you can look at opening a Family Investment Company, a Trust – or both depending on your needs. A financial advisor or an accountant will help you make sure you’re operating in a tax-efficient, compliant way.

 
Learn more about our online accounting services for directors and limited companies. Call 020 3355 4047 to chat to the team, and get an instant online quote.

How Do I Close a Limited Company?

The decision to close down your limited company might not always be an easy one, whatever your circumstances. After all that hard work to build up your business, it’s more than understandable that you may feel reluctant to let go, even if you have positive reasons for doing so such as your approaching retirement.

In this article we explain the process for closing down a company, and how this depends on whether or not it’s solvent.

What’s the difference between a solvent and insolvent company?

An insolvent company is one which is no longer able to afford to pay its bills when they’re due, or it has more liabilities (things it must pay, such as debts and salaries) than assets on its balance sheet. If it is solvent then it can afford to pay its bills, and the company owns more than it owes.

Is being insolvent the same as being bankrupt?

No, they have different meanings although the terms bankruptcy and insolvency are often used interchangeably to describe financial distress.

Insolvency is a state where a business is unable to pay its bills. Being declared bankrupt is an official legal process which comes with severe restrictions about borrowing money and running a limited company.

Bankruptcy only applies to individuals and sole traders. Insolvency can apply to any business or individual.

How do I close down a limited company if it’s still solvent?

A solvent company is one which can still afford to pay its bills, so the owners can close the business either by:

Striking off a company to close it

The most common, and potentially cheapest, way to close a solvent company is to have it struck off the Companies House register. You can only have a company struck off under certain conditions, and it must not:

How do I have my company struck off?

You’ll need to apply for company strike off using a DS01 form which has been signed by all of the company’s directors. From 1st February 2026 it costs £13 to apply online (which is strongly encouraged), or £18 to apply using a paper form through the post if you cannot use the online service.

The company’s assets will need to be dealt with before applying for strike off, and you’ll also need to close any bank accounts and tell anyone who is part of the business, such as employees.

Member’s voluntary liquidation for a solvent company

The owners (also known as ‘members’ or ‘shareholders’) of a solvent limited company can also choose to close it by requesting member’s voluntary liquidation.

This might be a suitable option for you if the company is still able to pay its bills and you’re retiring, decide you no longer want to run the business, or you’re stepping down from a family firm with nobody to replace you.

How do I request member’s voluntary liquidation?

The form you should use to record member’s voluntary liquidation depends on where the company is registered:

The declaration or form will need to include a written statement confirming the directors believe the company is able to pay any outstanding debts in less than 12 months, and how long this is expected to take. You’ll also need to provide the names and addresses of the company and its directors, and a statement of the company’s assets and liabilities.

The company must call a shareholders’ meeting within five weeks of submitting the form or declaration, and advertise it in The Gazette within two weeks. The next step is to notify Companies House of the resolution within 15 days.

Limited company accountancy services

From only £39.50 per month

Learn more

Closing an insolvent limited company

The process for closing down a limited company which is insolvent and can’t afford to pay its debts is a bit different, although there are two ways to go about it:

Creditors’ voluntary liquidation for an insolvent company

If the company can’t afford to pay its debts and wants to close, it can apply for creditor’s voluntary liquidation. The terminology can get a bit confusing because this sounds very similar to a member’s voluntary liquidation (which is when the company can afford to pay its debts).

You’ll need to call a shareholder’s meeting and have at least 75% of the voting rights agree before you go ahead and appoint an insolvency practitioner to liquidate the company.

You must inform Companies House that you’re appointing a liquidator within 15 days of the resolution being passed, and advertise this in The Gazette within 14 days.

The practitioner, also known as a liquidator, will arrange to sell off the company’s assets and share these funds between the creditors before dissolving the company.

Compulsory liquidation of insolvent companies

Compulsory liquidation (also known as ‘winding-up’) is a court procedure which can start by one of your creditors filing a petition for the liquidation of your company.

The application will be reviewed by a judge, who will decide whether a court hearing is necessary or not in order to liquidate the company’s assets before it’s dissolved.

What can I do to avoid compulsory liquidation for my company?

An insolvent company which can’t pay its debts might be able to apply for a Company Voluntary Arrangement (CVA). This is a formal agreement to repay the company’s creditors over a set period of time, whilst continuing to trade and keep control of the business.

You will need an insolvency practitioner to work with your creditors and create a CVA for you. They will work out realistic repayments, and invite your creditors to vote on it. To be eligible for a CVA, the arrangement must be approved by creditors who are owed at least 75% of debt.

How do I close a limited company without a director?

Limited companies should normally have at least one director in order to operate, but there are times when it can be left without one – for instance, if the sole director dies unexpectedly.

Companies exist as a separate legal entity to the people that own and run them though, so the company won’t automatically close even if this does happen.

This means that the company will need a new director to be appointed – either by the remaining shareholders if there are any, or by the executor of the estate.

Companies House will strike the company off the register if it doesn’t appoint a new director, which might sound like an easy option, but it does make dealing with the company’s remaining assets much more difficult.

What if I don’t want to close it?

If you don’t want to close it, you can let the company stop trading and register it as dormant for tax reasons, as long as all business activity stops, and it’s not trading or receiving income. You do still need to send annual accounts and a confirmation statement to Companies House though!

Can I restore my limited company to the register?

Known as ‘administrative restoration’, you might be able to apply for your company to be restored to the register if:

If you don’t meet those conditions, you’ll need to apply for a court order instead.

Learn more about our online accounting services for businesses. Call 020 3355 4047 to chat to the team, and get an instant online quote.

Year-End Accounting for Limited Companies

If the thought of working through year-end accounts for your limited company fills you with dread, you’re not alone! We’ll go through what needs to happen when your company reaches year end, and share some tips to make sure you’re prepared.

What is my company year end?

Your ‘Year End’ is basically the end of your company’s accounting period – you might also hear it called your accounting reference date. It’s the date your company’s accounts are made up to at the end of its financial year.

Each limited company has its own financial year based on the company’s ‘birthday’ (the date you registered it with Companies House) and ending on the last day of the month.

It’s different to a tax year, which runs from 6th April – 5th April!

What do I need to file when my company year ends?

When your limited company reaches its year end, you’ll need to prepare:

What is the deadline for filing my company accounts and tax returns?

You’ll have filing obligations for both Companies House and HMRC once your company’s financial year ends. Listed below are the actions you need to take, along with the deadline. You can also use our online tax calendar (or if you’re a current client, you can view your personalised timeline in your Client Hub account).

What you need to do The deadline
File your first accounts with Companies House 21 months after you registered with Companies House
File annual accounts with Companies House 9 months after your company’s financial year ends
Either pay the Corporation Tax due or inform HMRC your company doesn’t owe any 9 months and 1 day after your accounting period ends
File your Company Tax Return to HMRC 12 months after your accounting period come to an end

What happens if I miss any of my year end reporting deadlines?

Anyone who is late reporting information or paying their taxes will normally receive a penalty from either Companies House or HMRC. The deadlines are very strict, and some companies have even been struck off the register for failing to report on time.

If you are late, you’ll receive an automatic penalty notice to file your accounts, as well as a fine which can increase depending on how late you are.

Companies House late filing penalties

How late you are
Measured from the date your accounts are due 		Penalty
Private Company or LLP 		Penalty
Public Company
1 month or less £150 £750
Between 1 and 3 months £375 £1,500
Between 3 and 6 months £750 £3,000
More than 6 months £1,500 £7,500

HMRC late filing penalties for Company Tax Returns

How late you are Penalty
Until 30th March 2026		 Penalty
On or after 1st April 2026
1 day £100 £200
More than 3 months late £200 £400
Three successive late filings £500 £1,000
Three successive filings more than 3 months late £1,000 £2,000

How can I get ready for my company year end?

Your year-end can be a tough and stressful time if you’re trying to get everything ready – especially if you are new to it all. These tips may help make things easier.

Gather paperwork

Every report and tax return you produce should be based on the cold hard facts of your company’s records, such as bank statements, receipts, invoices, payroll… and so on. It’s yet another reason why good bookkeeping habits are essential for every business! If you’re able to keep everything up to date throughout the year, it makes the year-end process much simpler, too.

Chase overdue payments

You’ll want your accounts to be as accurate as possible, and the last thing you need is to pay taxes on money you don’t actually have yet. Crack down on any late payments before your reporting deadline to ensure you get the money in on time.

Limited company accountancy services

From only £39.50 per month

Learn more

Sort your expenses out

Remember, you’re entitled to expenses! Claiming expenses will reduce your profits, which means you pay less Corporation Tax. Keep track of everything your company spends, and ensure you claim for anything you’ve used ‘wholly and exclusively’ for your business.

Cross-check everything

Ensure everything adds up. You don’t want your accounts to say one thing, and your supporting documents to say another. If you’re unable to get payments for some invoices, list them as outstanding debts owed rather than revenue and include any notes you think are necessary – for example, if you think you might not be paid by a customer, or if there’s currently a dispute.

Consider hiring an accountant

The easiest way to ensure things run smoothly is to hire an accountant. They can get to know your business and put your mind at ease if you have any burning questions or anxieties.

Learn more about preparing your business for a new year

Is there anything else my limited company needs to think about?

There are other things to consider (some mandatory), they include:

VAT returns

If you’re VAT-registered and on the Flat Rate or Standard scheme, you may have a VAT return due around the time of your company year-end. Always ensure your VAT returns are sent off on time and pay HMRC if needed.

Confirmation Statement

A Confirmation Statement allows the director of a limited company to confirm their information with Companies House is up to date. You need to file this within 14 days of its due date (which is normally a year after your incorporation date, although you’ll need to submit one sooner if you have any major changes to report).

You need to submit a Confirmation Statement, even if your company is dormant.

Review how your company operates

It’s a great idea to check your suppliers annually. For example, has the price gone up in the last year? Is the quality of service the same? Could you be getting a better deal elsewhere?

It’s also worth looking at your finances to see if there is anything you can do to be more tax efficient. For instance, by paying money into an ISA or putting more money into your pension. The good news is an accountant can help you with all of this and ensure you’re saving as much money as possible.

Need to speak to an accountant? Call us on 020 3355 4047 or get an instant quote online.

What is Form SH01?

An SH01 form is used to tell Companies House when new shares are allotted in a private limited company. This is also known as a ‘return of allotment of shares’ form.

Do I need to fill in an SH01 form?

A limited company normally allocates shares and appoints shareholders during the incorporation (formation) process, but if anything changes at a later date you’ll need to complete an SH01 form to report this.

You might have multiple reasons for allotting new shares, such as including family members in your business, or issuing new shares in exchange for investment from shareholders. 

Limited company accountancy services

From only £39.50 per month

Learn more

When do I need to submit my SH01 form?

You must submit an SH01 form to Companies House within one month of the new shares being allotted. This ensures that Companies House always have an accurate record of your shareholder structure, and how the company ownership is divided by shares.

What information is needed for a SH01 Form?

It’s a good idea to round up all the information you’ll need to fill in the form before you get started. The SH01 Form generally requires:

You won’t need to include the new shareholders’ details in the SH01 Form, only information about the shares themselves. You will need to include the new shareholders’ information next time you submit a confirmation statement (or you can submit an early confirmation statement if the new shareholders want to be recorded with Companies House sooner).

Allotting new shares to different share classes

Companies sometimes use a variety of share classes so they can be flexible with what different shareholders are entitled to. For example, if the company wants to pay dividends at different rates, or restrict a shareholder’s ability to vote on major decisions.

It’s important for the company to keep track of who is entitled to what, so you’ll need to record everything in the company’s articles of association.

 
We know that running a business can be confusing. Learn how our online accountants can help by calling 020 3355 4047 and get an instant online quote.