Annual returns or confirmation statements provide a snapshot of a company’s general details. They include information about the higher management or officers such as directors and secretaries, details of shareholders, share capital, and registered office address.
According to the Companies act 2006, every limited company and limited liability partnership business are required to submit annual returns once in a tax year. Even a dormant company is also required to do so. According to Companies House regulations, limited liability partnerships will submit form LL AR01, while limited companies will file AR01.
Filling Deadline & Penalties
Companies House always sends alerts and reminders through emails and posts to registered office addresses of the businesses when it comes due. A company either is limited, or LLP is required to file the return after a year since the date of its incorporation or from the date of the last submitted confirmation statement or annual return. Companies House allows companies to submit their statements within 14 days after the set due dates.
According to the Companies House regulations, if a company fails to meet the deadlines for submitting the annual return, it can face a penalty of up to £5,000. Furthermore, the registrar also has the power to strike off the respective company from the Companies House’s register. In this case, the assets of the respective business will become the property of the crown.
Key Components of Annual Returns/ Confirmation Statements
If you are running any business in the UK, you are essentially required to file confirmation statements in the specified time and within the deadlines. A company can submit its returns to the Companies House through online filing or by post. Web filing costs just £13, but it keeps you updated about your due dates as by doing so, you will be receiving e-reminders by Companies House in this regard.
The Key components of annual returns include:
Your annual return must comprise company details such as company names, company number, company nature or type, company’s registered office address, and details about the higher management or officers. The details about officers or higher management include their forename, surname, nationality, date of birth, and business involvements. Your company’s officers or higher management means company directors and secretaries.
Statement of Capital
The statement of capital expresses the number of allocated shares, their class, and aggregated nominal value, the amount of per share (paid/unpaid), and the amount of cash in which share was issued on the name of shareholders and their shareholding percentages. It requires accurate calculations, and any mistake can lead your business towards bearing penalties and complex legal difficulties.
Significant Changes during the Year
Your filed confirmation statement or annual return must include the details of any recent change of control, ownership, management, and other relevant events that have taken place in the last 12 months.
Annual Returns for Charities
Every charitable and non-profit organization registered in the UK is also required to submit confirmation statements to Companies House. The criterion for such institutes is a bit different from other business organizations.
Charities with Income Less than £10,000
The charities with an annual income lower than £10,000 are not required to file the annual return, but it is essential for them to maintain their records regarding contact, trustees, and income and expense details.
Charities with Income More than £10,000
The charitable organizations with an annual income of more than £10,000 are required to submit their confirmation returns to the respective authority within the 10 months after the end of their financial years. They are also required to keep their details such as contact details, trustees’ details, accounts, and independent audit reports, updated as they are also required to provide PDF copies to Companies House.
How can ProAccountax benefit your Company?
ProAccountax is offering its accounting and taxation services over an extended period of three decades. We have been serving numerous businesses from different sectors. We hold a team of professional accountants and taxation solicitors. Irrespective of your business field and sector, our experts are fully aware of the ways and tactics to deal with your accounts management needs. In the case of facing troubles with the preparation of your annual returns, ProAccountax can provide you all the required technical support and expertise to prepare your returns efficiently. Our experts are highly professional in preparing the confirmation statements up to the set standards by the Companies House.
Hiring ProAccountax for your annual accounts management and filing returns to Companies house can help you minimize the risk of penalties and other legal complications. Our expert accountants will help you in maintaining your records and eradicating errors to avoid erroneous submissions. We provide accounting services at very affordable rates lower than other competitors in the market.