Update: Changes to the Small Business, Enterprise and Employment Act

The Small Business, Enterprise and Employment Act has received another update recently – here’s what you need to know.

Confirmation Statement

On 30 June 2016, we said adios to the annual return. In its place comes the confirmation statement which, like the annual return, you have to file at least once a year but, unlike the annual return, there’s no set date you have to do it. This initiative was a result of the Government’s ‘Red Tape Challenge’ which sought to reduce the administrative compliance burden, particularly for the smaller companies in the UK (because, let’s face it, we all have enough admin to do as it is). It means that information previously delivered to Companies House will not have to be duplicated. Hurrah!

It’s important to note that no more than 12 months can elapse between a confirmation statement and as soon as a new one is made the 12 month period starts again. This means if you’re already making a filing, you can combine the confirmation statement with it if you choose. It also means that if there has been no change to your list of shareholders or statement of capital since your last filing, you don’t have to file them with every return.

Your due date will typically be a year after your company was incorporated or the date your last annual return was filed. Don’t worry about checking your calendar – Companies House will send a reminder to your company’s registered office when your confirmation statement is due. To complete the statement you’ll need to:

•Check what information relating to your registered office, directors, and location of registers is already on file, because if there have been any changes you’ll need to fill out a separate form before you can file your confirmation statement.

•Check what shareholder information, statement of capital, and standard industry classification is already on file and update it if needed.

•Check and confirm your record is up to date.

•Pay a £13 fee to file online or £40 if filing by paper (you’ll only be charged once a year regardless of how many times you update your record).

People with Significant Control (PSC) Register

As of April 2016, companies, LLPs and SEs were required to keep a public register of people with significant control – also known as a PSC register. The Government hoped this would increase transparency around legal and beneficial ownership and help tackle tax evasion, money laundering, and terrorist financing.

The rules around the PSC register were updated on 30 June 2016 to say that if your company incorporation date is before 30 June 2016 you’ll need to provide information about people with significant control in your first confirmation statement (see above if you skipped down the page!). Just a reminder – not providing this information is a crime (although, granted, it’s not quite as bad as tax evasion, money laundering, or terrorist financing).

If you have any questions about confirmation statements or your PSC register, give us a buzz on 02921 303888.