Running a small business involves juggling numerous responsibilities, from managing operations to ensuring compliance with legal requirements. One such requirement in the UK is filing a confirmation statement. But what is a confirmation statement, and can small businesses handle this task on their own? In this blog, we’ll explore everything you need to know about confirmation statements, their importance, and whether small businesses can file them independently. By the end, you’ll have a clear understanding of this essential compliance task and how it impacts your business.
What Is a Confirmation Statement?
A confirmation statement is a document that all UK limited companies and limited liability partnerships (LLPs) must file with Companies House at least once a year. It serves as a snapshot of your company’s key details, ensuring that the information held by Companies House is accurate and up to date.
The confirmation statement includes information such as:
- Company name and registered office address
- Details of directors, shareholders, and company secretaries
- Statement of capital (for companies with share capital)
- Standard Industrial Classification (SIC) codes, which describe the nature of your business
- Information about people with significant control (PSCs)
Filing a confirmation statement does not require you to provide new information unless there have been changes to your company’s details. Instead, it confirms that the existing information on record is correct. So, what is a confirmation statement in simple terms? It’s a way to verify and update your company’s official records with Companies House.
Why Is Filing a Confirmation Statement Important?
Filing a confirmation statement is a legal requirement for all UK companies and LLPs. Here’s why it’s so important:
- Maintain Compliance: Failing to file a confirmation statement can result in penalties, fines, or even the dissolution of your company. It’s a crucial part of staying compliant with UK company law.
- Ensure Accuracy: The confirmation statement ensures that the information held by Companies House is accurate. This is essential for transparency and helps maintain trust with stakeholders, including customers, suppliers, and investors.
- Avoid Legal Issues: Inaccurate or outdated information can lead to legal complications. For example, if your company’s registered office address is incorrect, you may miss important correspondence from HMRC or Companies House.
- Protect Your Business Reputation: Keeping your company details up to date demonstrates professionalism and reliability, which can enhance your business’s reputation.
Understanding what is a confirmation statement and its importance helps you stay proactive in managing your business’s legal obligations.
Can Small Businesses File Their Own Confirmation Statement?
The short answer is yes—small businesses can file their own confirmation statement. The process is relatively straightforward, especially if there have been no changes to your company’s details. Here’s how small businesses can handle this task:
1. Gather the Necessary Information
Before filing, ensure you have all the required information on hand. This includes your company’s registered office address, details of directors and shareholders, and SIC codes.
2. Log in to Companies House WebFiling
To file your confirmation statement, you’ll need to use the Companies House WebFiling service. You’ll need your company authentication code, which is a unique code sent to your company’s registered office address.
3. Check and Confirm Your Details
Once logged in, review the information held by Companies House. If everything is correct, you can confirm the details and submit the statement. If there are any changes, you’ll need to update the relevant sections before submitting.
4. Pay the Filing Fee
There is a small fee of £13 to file a confirmation statement online. Payment can be made via debit or credit card.
5. Submit the Statement
After confirming the details and paying the fee, submit the statement. You’ll receive a confirmation email once the process is complete.
Benefits of Filing Your Own Confirmation Statement
Filing your own confirmation statement offers several benefits for small businesses:
- Cost Savings: By handling the task yourself, you can avoid paying fees to an accountant or solicitor.
- Control Over the Process: Filing your own confirmation statement allows you to review and update your company’s details directly, ensuring accuracy.
- Quick and Convenient: The online filing process is simple and can be completed in just a few minutes.
- Improved Understanding of Compliance: Handling the confirmation statement yourself can help you better understand your company’s compliance requirements.
Now that you know what is a confirmation statement and how to file it, you can take control of this essential task.
When to Seek Professional Help
While small businesses can file their own confirmation statements, there are situations where professional assistance may be beneficial:
- Complex Changes: If your company has undergone significant changes, such as a change in ownership or structure, an accountant or solicitor can ensure the updates are handled correctly.
- Time Constraints: If you’re too busy running your business, outsourcing the task can save time and reduce stress.
- Uncertainty About Compliance: If you’re unsure about your company’s compliance status or how to file the confirmation statement, a professional can provide guidance and peace of mind.
Understanding what is a confirmation statement and when to seek help ensures you stay compliant without unnecessary stress.
Tips for Filing a Confirmation Statement
Here are some tips to help small businesses file their confirmation statements smoothly:
- Set Reminders: Companies House sends reminders, but it’s a good idea to set your own reminders to avoid missing the deadline.
- Keep Records Updated: Regularly review and update your company’s details to ensure the confirmation statement process is quick and easy.
- Use the WebFiling Service: Filing online is faster and cheaper than submitting a paper form.
- Double-Check Information: Before submitting, carefully review all details to avoid errors or omissions.
By following these tips and understanding what is a confirmation statement, you can streamline the filing process.
Conclusion
Filing a confirmation statement is a vital compliance task for all UK companies, including small businesses. It ensures that the information held by Companies House is accurate and up to date, helping you maintain compliance and protect your business’s reputation. While small businesses can file their own confirmation statements, it’s important to understand the process and seek professional help if needed.
By staying on top of this annual requirement, you can focus on growing your business with confidence, knowing that your legal obligations are being met. So, whether you choose to file your confirmation statement yourself or enlist professional support, make it a priority to keep your company’s details accurate and compliant. Now that you know what is a confirmation statement and its importance, you’re well-equipped to handle this essential task.
