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Confirmation Statement vs Annual Accounts- What’s the Difference?

By PaperRocket Accounting, Jul 10 2019 01:48PM

If you’ve been running a limited company for over a year, you will have come across both confirmation statements and company accounts. However, if you’re new to having a limited company, or aren’t quite up to speed with the difference between the two, this is the blog for you!

What is a confirmation statement? Is it the same as an annual return?

The company confirmation statement contains statutory information, such as your company’s address, the directors’ names, shareholding information, and a record of PSC’s (People with significant control) over the company. The statement simply acts as a way for the director to confirm that Companies House is holding correct and up to date information on that company. Alternatively, if there are changes required, this can be done either by completing the relevant form at the time of the change, or when the statement is filed.

The above may all sound familiar, but under the name annual return. That’s because before June 2016, all limited companies were expected to complete an 'annual return’. However, since then, the annual return has been scrapped in favour of a confirmation statement, which serves the same purpose, but in a much simpler format.

The statement costs £13 to file online and will take about 5-10 minutes to complete via the Companies House webfiling service. You can also sign up to reminders here, meaning that Companies House will send you an email when the statement becomes due, ensuring you don’t miss the deadline.

All limited companies are required to complete a confirmation statement for their company, whether it is dormant or trading.

When do I need to complete the statement?

Generally, your confirmation statement will need to be filed around the anniversary of your company formation. However, this can be changed, so the best thing to do is to check on Companies House as this will show you both the made up date (the date for which you are providing the information) and the filing deadline date. You will have 14 days from the made up date to file the statement- failure to do so could lead to the company being struck off the register, and even prosecution.

So, is this statement the same as the company accounts?

Absolutely not! The confirmation statement includes no financial information regarding the company and is completely separate to the company accounts. It is simply a record keeping exercise, rather than a declaration of accounts.

Company accounts instead declare all financial information for the company (turnover, expenditure, profit, taxes etc) for the relevant accounting period, and take a lot more work to compile (certainly more than 5-10 minutes!), so whereas you could file your confirmation statement yourself, you would certainly want to get an accountant to prepare the accounts for you, to ensure that all the figures declared are correct, and that the correct amount of company corporation tax is being paid.

PaperRocket Accounting provide accounting and tax services to professional contractors and freelancers working in the UK.

We offer our clients a flexible choice of fixed fee monthly packages which cover all of their accounting and tax needs (so no hidden costs or surprise bills!). All of our accounting packages include a monthly subscription for a cloud accounting software subscription provided by the awarding winning FreeAgent.

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To find out how we can help you please get in touch now.

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