What if you Miss your Confirmation Statement Date?
Your company Confirmation Statement is something you need to submit to Companies House each year along with your Annual Accounts. This rule applies to every registered company regardless of whether they have traded or not, so even if you have set up a dormant company, you will still need to submit a Confirmation Statement each year to Companies House.
But what if this slips your mind? What if you forget to so submit your Confirmation Statement entirely, or you remember at later date and submit one way past your annual submission deadline? Let’s take a look at what to expect should this happen.
What is a Confirmation Statement?
Your Confirmation Statement is a document that has replaced what was known as your Annual Return. It is simply a statement that tells Companies House about your company status. It confirms your Registered Office Address, your directors information and shareholder details, your standard industry classification code, changes to your PSC register, and your share capital. If there have been any changes to your company structure in the past year, your Confirmation Statement should detail these changes and confirm them to Companies House so that they can amend their records accordingly.
When should I submit a Confirmation Statement?
Every registered company will need to file their first Confirmation Statement no longer than one year and 13 days after they have completed their Company Formation Process. A new Confirmation Statement is then required to be submitted each year from then on. So lets say your formed your company on 1st September 2017. You would need to submit your first Confirmation statement before 13th September 2018. Your following statements will then be due within a year from your first one being filed.
Oops! I have missed the submission deadline!
Should you miss your submission deadline for whatever reason, Companies House will issue you with a warning. Should you ignore any warning letters and requests for you to submit your company paperwork, then the registrar could take some very serious steps, including completely striking off your company from the register. This means that your company will no longer exist and any assets that company holds will become Crown property – so even if you hold a dormant company with plans to trade in the future, you need to keep your records up to date.
If you don’t comply with Companies House and fail to take note of their reminders and warnings, your company directors and other officers could face prosecution and severe fines as they are ultimately responsible for ensuring your company meets with it statutory obligations. Remember that failing to meet your legal requirements is a criminal offence.
Will I get charged for late submission?
Mistakes do happen and it can be easier than you think for submission deadlines to slip your mind. Should you file your Confirmation Statement late, there isn’t actually any penalty fine for missing your deadline, however failure to submit at all will trigger Companies House to start legal action against you. This will result in your company being struck off the register and your company directors possibly facing severe fines in most cases.
What about my Annual Accounts?
Your Annual Accounts list all of your yearly financial details for your company. You are required to complete and submit you Annual Accounts each year to Companies House, so this can serve as a handy reminder to also submit your Confirmation Statement at the same time.
While a company that is actively trading will need to submit a set of Annual Accounts each year, a company that is registered as dormant and is not trading will need to submit a different set of accounts called Dormant Company Accounts. This is quite straightforward and simply states that no trading has taken place in the previous year.
When are Annual Accounts due?
For newly formed companies, your first set of Annual Accounts will need to be filed no longer than 21 months from your company registration date – the date that your company was officially incorporated. Once you have submitted your first set of Annual Accounts, your subsequent filings should be submitted no later than 9 months after your Accounting Reference Date.
Your Annual Accounts due date shouldn’t be confused with your Accounting Reference Date. This is the difference between the two dates:
- Your Annual Accounts Due Date is when your company Annual Accounts need to be delivered by
- Your Accounting Reference Date is the period that the Annual Accounts should cover up to
So, for example, if you formed your company on the 1st September 2017, you would need to file your first set of Annual Accounts by 1st June 2018. Your Accounting Reference Date will be 30th September each year.
Missing your Annual Accounts deadline
Unlike missing your Confirmation Statement deadline date, if you miss your Annual Accounts submission deadline date your company will be subjected to a fine. In the worst case scenario, you company can be fined and also struck off the register of companies if you completely fail to submit your Annual Accounts.
There is an automatic penalty fine for late submission of your Annual Accounts past your deadline, and this is imposed on a sliding scale, so the later you submit your accounts – the more you will be fined:
- 0 – 1 month late: £150
- 1 – 3 months late: £375
- 3 – 6 months late: £750
- 6 months + late: £1500
There is an even more nasty surprise in for sloppy companies that fail to meet their submission deadlines two years in a row – the penalties listed above are doubled!
This is why it is important to have a good administrative process in place where all government deadlines and submission dates are adhered to. This is the best way to avoid having to pay fines and stay on the right side of the law.
If you are struggling to manage all of your statutory obligations, then it would be advisable to seek help from an accountant to help organise your official paperwork and handle your submission requirements.