Running a business is no easy task. Alongside all the stress and work involved in your day-to-day activities, there’s a whole lot of paperwork, accounting and deadlines that you have to stay on top of.
But hey, it’s a small price to pay to own the business you’ve always wanted to.
At Business4Beginners, we’ve always got your back when it comes to advice in understanding and meeting your legal obligations as a sole trader, limited company or otherwise. This brings us to this guide on confirmation statements, which every business needs to submit to the Companies House once a year.
So, let’s find out what is a Companies House confirmation statement, why you need to fill one out and how you can make sure yours is returned before the deadline.
What is a Companies House confirmation statement?
A confirmation statement is a document that the Companies House introduced in 2016 to ensure that all information on their records about your company was up to date and correct. Even if no information has changed from the previous year, you still need to do this process to check your company’s details and verify them.
It’s an annual form that simply confirms that their records are up to date. If something is off, this statement will reveal it so the correct information can be submitted.
This may seem like an annoying document to remember every year, but trust us, it’s a lot better than what it used to be. Before the confirmation statement was introduced, you had to provide and submit a full snapshot of your company once a year. Now, it’s a simple ‘check and confirm’ system. It takes minutes – but just because it’s quick, you mustn’t forget to do it. Confirmation Statements are required by all limited companies and limited liability partnerships. Even if your company is dormant, you must submit this form every 12 months.
Don’t submit your confirmation statement yourself
Prefer a hands-off option? Our top-rated company formation agent, 1st Formations will complete and submit your Confirmation Statement for just £49.99.
That includes the Companies House filing fee and is completed within 3 working days of you submitting the required information.
Confirmation Statements in 5 easy steps
Confirmation Statements are one of the easiest cases of company paperwork that you have to submit. To give you the run down on how it works and all the information you need, we’ve put the entire process into these 5 easy steps.
1. Check when your statement is due
Your confirmation statement needs to be submitted to Companies House every 12 months.
If you’re a new company that hasn’t submitted a confirmation statement before, then your statement will be due 12 months after your incorporation date. So, if your company was incorporated into Companies House on the 16th of March 2020, your confirmation statement will be due on the 16th March 2021.
If you’ve already submitted a confirmation statement, your next one is due within 12 months of the date of that submission.
The 12-month deadline work on a rolling basis. So, if you submitted a confirmation statement on the 2nd of February 2021, your next one will be due on 2nd February 2022.
Not submitting your confirmation statement on time is a criminal offence.
If you don’t submit your confirmation statement by the deadline, the Companies House may assume your company is no longer in operation. This gives you two very serious consequences:
- The Companies House may strike your company from their records completely. That means your limited company will cease to legally exist and all of your assets will become the property of the Crown.
- You can be prosecuted for failing to submit the statement online and thus committing a criminal offence.
Those are some pretty serious consequences, so make sure that your confirmation statement is always filled in on time.
2. Register for online filing with the Companies House (if you haven’t already!)
To submit your Company Statement Confirmation, you need to register for online filing with the Companies House, which you can do by clicking this link. Once registered, or if you’ve already registered, you’ll need to visit this page on the Companies House website, using your unique password and authentication code.
Here, you’ll be able to access your confirmation statement and move on to the next stage.
3. Check all your details are correct
Your confirmation statement comprises top-level information about your business that’s stored by the Companies House. It includes details such as:
- Your company name;
- Your registration number;
- Your company category;
- The date you registered;
- Your registered office;
- If you are trading on regulated markets, such as a stock exchange;
- Your secretary and director details;
- Your share capital and shareholdings.
- Your registered email address (as of March 2024)
If any information has changed in the past 12 months, you need to enter these changes in the additional information section. As of 5 March 2024, you will also need to state that the intended future activities of the company are lawful. I.e. you don’t plan on breaking the law.
4. Submit your details and pay
Once satisfied that everything is correct, then you just need to submit your Company Statement online. If you prefer to send your confirmation statement through the post, you can do so. However, be warned that paper forms cost £62 to process, whereas the online form only costs £34.
You will only have to pay for your Confirmation Statement once a year, no matter how many changes that you submit. For example, let’s say that Jack incorporated his company on the 4th of May 2020.
3 months later, on the 4th of August, Jack submitted a new confirmation statement to change some details about his business. But because he had paid in May, a new payment won’t be due until the 4th of May 2021.
Sadly, you cannot change your payment date. It works on a 12 month period from the date you first incorporated. So if you wanted to submit a confirmation statement early to change your billing period, you’re fresh out of luck.
5. Set a reminder for next year
Now you’ve submitted your company statement, the next one will be due in 12 months’ time. So set a reminder in your calendar so that you never miss a deadline.
If you get stuck or have any more questions, take a look at this help guide on the gov.uk website.
2024 updates to the Confirmation Statement
If you’ve filed a confirmation statement in the past, you might notice that there have been some slight changes introduced as of the 5th of March 2024. Besides an increase in fees (always check the Gov.uk website for the latest pricing information), there have been two additions to the confirmation statement.
Firstly, your company information needs to include a registered email address, which Companies House will use to contact you about your company. This email address will not be published on the public register.
Secondly, you need to state that the company’s intended future activities are lawful. This new statement was introduced with the intention of making it clearer that companies on the register have a duty to operate in a lawful way. As long as you’re not planning on breaking the law or setting up an illegitimate business, this should all be true anyway.
Both of these new changes will be included in the forms, so you don’t need to do anything extra other than agree to the statement prompt. If you don’t confirm the above statement, Companies House will not accept your Confirmation Statement.
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Do I need an accountant to fill out a confirmation statement?
No!
Your confirmation statement is about confirming the top-level details of your company are correct. Thankfully for this form, there’s no math involved and no need to include a record of your finances.
Don’t worry though, because you’ll be needing those for your annual statement or end of year accounts instead.
Don’t submit your confirmation statement yourself
Prefer a hands-off option? Our top-rated company formation agent, 1st Formations will complete and submit your Confirmation Statement for just £49.99.
That includes the Companies House filing fee and is completed within 3 working days of you submitting the required information.
Do I need to submit a Companies House statement as a sole trader?
If you’re a sole trader, your business isn’t registered at Companies House. Which means that you are exempt from this process. After all, why would you need to confirm your details if the Companies House doesn’t have a record of you in the first place?
Having fewer legal obligations is one of the benefits of being a sole trader over a limited company. Although limited companies do have more paperwork to complete, this comes with certain advantages that sole traders do not have, such as:
- Easier financial backing and support;
- Personal cover, as the company will be liable for debts and not yourself;
- Better tax efficiency and allowable expenses;
- A more professional appearance to secure top-level clients.
If you’re currently a sole trader who’s considering becoming a limited company, it’s not too late to make that switch. Find out how to form a limited company in our guide, or check out our list of recommended company formation agents to take care of the paperwork for you.
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Need some help with your paperwork?
At Business4Beginners, we’ve got all the advice, tips and guides you need to understand and correctly fill out all of the legal forms required as a business.
To get started, check out our range of legal or accounting guides on our website or see our reviews of the best accounting software to get stuck in.
Don’t submit your confirmation statement yourself
Prefer a hands-off option? Our top-rated company formation agent, 1st Formations will complete and submit your Confirmation Statement for just £49.99.
That includes the Companies House filing fee and is completed within 3 working days of you submitting the required information.