Confirmation statements are just one of the numerous documents that companies are legally obliged to submit to the HMRC – and this also applies to both dormant and non-trading (inactive) companies. A confirmation statement may seem simple on paper, but it can actually be quite involved and require plenty of information. In this article, we’ll be exploring what they are and how to file them.
What is a confirmation statement?
The simplest way to understand this type of record is to know what it represents. Consider it a formal notice of standing relating to your company. Any registered businesses (including limited companies and so on) must provide this document to the HMRC or else face a fine and possibly other penalties for repeat offences.
Do I need to file a confirmation statement?
If you own a company, you are legally required to submit a confirmation statement at least once a year. However, there are many reasons why businesses choose to do so more frequently, with the main one being to update company details if anything changes.
If your company is no longer trading actively, it is considered dormant, but as long as it remains registered and not dissolved, you must provide a statement of confirmation every single year, unless you choose to dissolve it entirely. In this case, a separate application must be made and that process can take months to do during busy periods, so it’s always advisable to seek the help of experts like our team at Workhy.
How do I file a confirmation statement?
So as not to become confused, it’s worth noting that a confirmation statement was previously referred to as an annual return. It details taxation, profitability, and other important financial factors. In order to file a confirmation statement, it can only be done through Companies House.
If you sign up to email notifications via the HMRC Government Gateway, you’ll be notified of when your statement is due and you can then either take care of it yourself or have it handled by a professional. In order to file, you’ll need to log in to your WebFiling account.
Once logged in at the appropriate page, you’ll then be required to input all relevant information and then click submit. You’ll receive a notification on this same platform once it’s been received and processed. After this point, you won’t have to do anything further until a year has passed, or if you choose to do so sooner than obliged.
If you don’t possess a WebFiling account, the quickest and easiest way to set one up is by visiting this link and then scrolling down the page to the ‘create an account’ link. You’ll then be guided through a quick process to set up and once confirmed, you’ll receive login details that can be used to process your confirmation statement.
When to file a confirmation statement
This part can be a little tricky to understand, so we’ll use an example that you can apply to your own company. First, consider when the business was officially incorporated. If this takes place on the 4th of March, the annual period will then end a month before this date the following year.
In the case of this example, that means that the ending period will be on the 4th of February. You will then have 14 days from this latter date to submit your confirmation statement. If the above dates are considered, this would mean that the final date that your statement can be submitted is on the 18th of February, at midnight. In instances where a late submission has taken place, a fine may be issued, but as both Companies House and the HMRC can be lenient depending on the scenario, it can be possible to explain the situation to them.
How much does it cost to file a confirmation statement?
There are two options when filing a confirmation statement. The first relates to online submissions and costs a total of £13. This includes the processing and filing fee. Alternatively, you can choose to submit a paper form instead, but this is more expensive and will require £40 to be attached as a cheque, or paid online on or around the same time as the statement has been submitted. If you choose to hire an expert, they will likely apply a fee on top, but this option is still preferred by many as it saves time and effort.
Can I file my own confirmation statement?
Yes, but as the process can be a little long-winded and often complicated, not to mention time-consuming, many people opt to hire a professional to take care of the submission on their behalf. Not only can this save time, but it can also reduce your stress in the process. With that being said, it is entirely possible to submit your own statement, and to do so, you’ll need to follow the instructions provided above regarding creating a WebFiling account. With this account, you’ll be able to login, provide the relevant information and then submit your statement.
What happens if I don’t file a confirmation statement?
If you don’t file your statement within 14 days of the end of your review period, your company and its officers may be prosecuted. Your company may also be struck off the register.
How our team at Workhy can help
At Workhy, we understand just how daunting submitting tax returns, self-assessments and confirmation statements can be. This is why we prioritise these types of services to make our clients’ lives easier. We also provide company formation services, as well as being able to file a multitude of documents on your behalf, help with accounting and much more. To learn more about our services, simply get in touch with our friendly team, and we’ll make sure to look after your needs, regardless of what you might need us for.