Have you ever wondered what confirmation statement are, how they work, and why you might need to use them as part of your limited company? It’s often a little difficult to find the right approach when it comes to your limited company’s management. But luckily, as one of the leading local accountants near you, we’re here to help. This should allow you to find out more about confirmation statements.
What are Confirmation Statement For Limited Companies?
First of all, we need to define what a confirmation statement actually is. Generally speaking, a confirmation statement is a document filed by limited companies. It details some of the important information relating to the business’s management. For example, this includes the directors, shareholders, and registered address. These are completed using the Companies House Form CS01.
When do Limited Companies File a Confirmation Statement?
As per the regulations, all limited companies must file a CT at least once every 12 months. This statement is generally due no later than 14 days after the anniversary of the previous statement being submitted. In most cases, the company’s formation date will usually be the anniversary, although it is possible to submit statements earlier than they are due if desired.
What is the Confirmation Statement Date?
Generally speaking, the confirmation statement date is the anniversary of the company’s formation. Alternatively, it could be twelve months following the submissions of any previous CT. As such, your limited company should focus on ensuring that the confirmation statement is submitted based on this date.
Do Dormant Limited Companies Still Have to File a Confirmation Statement?
Many people assume that confirmation statements are only relevant for active companies. However, even dormant limited companies with no significant accounting transactions still have to file a confirmation statement each year. With that being said, it’s worth keeping in mind that dormant companies may need to include fewer details than active firms.
How Do Confirmation Statements Differ From Annual Accounts?
The core focus of CT for limited companies is the firm’s registered details, which include factors. These include the shareholders and registered address for the business.
However, annual accounts are more heavily focused on the financial history and activities for the firm. Nonetheless, both need to be filed through Companies House – although the latter may also need to be filed with HMRC. It is also highly important to make sure you file these in time.
Despite being very different, both have a deadline that must be met. If you breach these, you may find that you will need to pay a fine.
How to File a Confirmation Statement
To file a confirmation statement, your limited company will need to obtain a copy of the Companies House Form CS01. This can be submitted digitally or by post. Most people will usually submit confirmation statements using the online Web Filing service.
Whether you choose to file your confirmation statement digitally or on paper is up to you. Still, always try to remember that you will generally need to pay a little more to do so. It’s only a little more. Thus, this usually won’t break the bank. Nevertheless, it is still worth keeping in mind.
How Much Does a CT Cost to File For Limited Companies?
One important point of note when discussing confirmation statements is the cost. Luckily, while many people assume this will be an expensive process, the reality is quite the opposite; in fact, filing for a confirmation statement is surprisingly affordable in many cases. In fact, the cost to file a confirmation statement as a limited company is usually only £13 for online applications. This increases to £40 for postal paper applications. What’s more, these statements potentially only need to be filed once per year. As such, you won’t necessarily need to pay out more than once.
How Much Does a Confirmation Statement Cost to Edit / Update?
If you need to edit or update your CT, there’s some good news; this doesn’t have to be massively expensive. In fact, the cost of updating or editing a confirmation statement is completely free. Thus, you won’t need to pay again until your next annual filing fee is due. Therefore, this can be an excellent option to take throughout the year, even if things change.
How Many Times Can a Limited Company Update a CT?
You will need to update your CT at least once every twelve months. However, there is no cut off as to the maximum number of times you can update it throughout the year.
As such, if there are any changes to your company’s details during the twelve month period, or if you have noticed a potential error on the CT you submitted before, you can fix this easily. Plus, you only pay once per year. As such, updating or editing your confirmation statement is effectively unlimited.
What Details Can be Updated on the Confirmation Statement?
If you find yourself in a situation needing to update the CT, you can update several things. Most often, you will probably need to update shareholder / share information. However, you can also edit the SIC codes. But what if the company has had a change in directorship, secretary, registered office, or PSC? In such cases, this data will need to be updated before filing the confirmation statement.
Confirmation Statement – final thoughts
Confirmation statements are statutory documents and must be completed annually for a business to remain compliant. They provide a brief glance into the registered details of a company; therefore, they are highly important for traceability and accuracy purposes. With this in mind, limited companies that don’t submit a confirmation statement on time can find themselves struggling with fines. Naturally, that’s not something any of us ever want for our business’s finances or standing! Having difficulty with any aspect of your limited company management? If so, don’t panic; our experts here at LiderTax will be able to help. There’s no point in leaving it to chance or struggling alone without help. Contact us today to see what we can do to help make your life a little easier. We’ll help ensure your statements are filed on time!