From the 30th June, the Annual Return is changing. This document, which must be completed and sent to the Companies House at least once every 12 months, will change to become a Confirmation Statement from this date. 

One of the most significant changes attached to the Confirmation Statement is the requirement for companies to publish a list of 'People with Significant Control', explained in more detail below.

The purpose of the Confirmation Statement is broadly the same as the Annual Return, but new rules introduced as part of the Small Business, Enterprise and Employment Act (2015) should make the Confirmation Statement easier to file and therefore reduce the administrative burden for small companies. 

Instead of having to file an annual report each year, as under the Annual Return system, the majority of limited companies will only have to check a box that states the corporate details held by Companies House have not changed. 

If a company's circumstances have changed, then updates will be reported in a new Confirmation Statement. 

A company will be able to update their records as many times as they like throughout the year. But unlike with an annual return, they will only have to check a box that states the corporate details held by Companies House have not changed. 

If a company's circumstances have changed, then updates will be reported in a new Confirmation Statement. 

A company will be able to update their records as many times as they like throughout the year. But unlike with an Annual Return, they will only be charged once per annum. The fee will be £13 to file online and £40 by paper. 

For the most part then, the Confirmation Statement represents a positive change - one that will cut the amount of administration that companies have to do. However there is a change that could prove more difficult for limited companies.

People with Significant Control (PSC) 

Most limited companies will have to create and send a register of 'People with Significant Control' (PSC) to Companies House when they send their first Confirmation Statement. 

This transparency register is essentially a list of people who have a large degree of control over a business. It is designed to make it clear to the tax authority and to tax payers who owns, controls and benefits from limited companies that are registered in the UK. 

The PSC register should also be updated whenever a Confirmation Statement is delivered to Companies House. 

According to the government, a PSC is anyone in a company, LLP or SE who meets one or more of the conditions listed in the legislation. This means someone who:

• Owns more than 25% of the company's shares.
• Holds more than 25% of the company's voting rights.
• Holds the right to appoint or remove the majority of directors. 
• Has the right to, or actually exercises significant influence or control. 
• Holds the right to exercise or actually exercises significant control over a trust or company that meets one of the first 4 conditions. 

If you have any questions about the new Confirmation Statement or if you require advice on filing a PSC register then please get in touch. Our customer services team is always happy to help. Please call: 0800 121 6513