News for Limited Companies
Currently, Limited Companies and Limited Liability Partnerships (LLPs) submit an Annual Return to HMRC but from the end of June (2016) this will be replaced by a Confirmation Statement.
An annual return, which is generally submitted to HMRC each year from the date the company was incorporated, contains details of a limited company’s directors and shareholders, (the annual return of an LLP lists its members). For both limited companies and LLPs, the annual return also shows the business’s registered office address. All the information has to be submitted each year, whether or not there are any changes.
In order to save time and lighten the administrative burden for limited companies and LLPs, the confirmation statement can be filed at any time of year so long as it is done within 12 months and 14 days of the previous year’s confirmation statement’s filing date. Some may choose to submit it when they file their accounts or at a different, quieter time of the year.
The filing date isn’t the only thing to change, if there are no changes within the year, then you simply submit a confirmation statement that says ‘no changes this year’, again reducing the administration burden.
The confirmation statement does require a new piece of information which is a list of ‘persons with significant control’ (PSCs). They will mainly be individuals who are not directors and who own 25% or more of the business.
Sole traders and partnerships that are not incorporated at Companies House will not be affected by this change and will continue to be exempt from having to file completion statements. Further information on the Confirmation statement is available on gov.uk.
ICS Accounting clients need not worry as included in our low monthly fee is the preparation and submission of a Company Annual Return and from the end of June, the Confirmation Statement.
Based in Lancaster, ICS are chartered accountants working with contractors, freelancers and small business owners across the UK. To find out more about us, you can speak to us online or call 0800 195 3750.