Your company Confirmation Statement is an important element that you need to submit to the Companies House every year along with your Annual Accounts. This rule is applicable for every company that is registered excluding the fact that they are traded or not. Even if one has set a dormant company, the person has to submit a Confirmation statement annually to Companies House.
But what happens if you miss this? What will go wrong when you forget to submit the Confirmation Statement on the given deadline. Before answering this question, let us get a brief idea about Confirmation Statement.
What is a Confirmation Statement?
Your confirmation statement is a document that is replaced with Annual Return. It is a statement that provides information and status of your company to the Companies House. This legal statement verifies your registered office address, your director's details and information about your shareholders, your standard industry classification (SIC) code, changes to your PSC register, and your capital share. If there are some changes in your company's structure, then you must provide all those details to the Companies House so that they can amend the recording consequently.
When should a Confirmation Statement be submitted?
Almost every company that is registered is required to file their Confirmation Statement, not more than one year and 13 days after completing their company formation process. After this, you will be required to provide a Confirmation Statement each year.
What if you miss the submission of a Confirmation Statement?
If you miss the date of submission of your company Confirmation Statement for any reason, then Companies House will issue a warning letter to you. However, if you still miss the warning letters and requests for the submission of your company's paperwork, then some serious steps can be taken by the registrar, which may include a serious step like eliminating your company name from the register. This implies that your company will no longer exist and the assets that the company holds will become the property of the Crown. Hence, if you are holding a dormant company with plans to trade in the future, you have to keep your records up to date. Moreover, failing to take note of the reminders of the Companies House might lead you to face prosecution and severe other fines.
Are there any charges for late submission?
Mistakes can happen and hence, filing your company Confirmation Statement late will not be charged with any penalty. However, if you fail even after repeated warnings from Companies House then they might take legal actions against you, which will include the elimination of your company from the register and your company directors might face severe fines in the majority of cases.
Therefore, it is suggested to keep track of the submission date of your company Confirmation Statement to avoid any future hassles. Even if you miss the deadline do not neglect the warning letter from the Companies House, if you do so then you can face severe consequences as discussed above.