Welcome back to post-summer reality, MAFters! There’s a new directive in town, and it’s worth being aware of. So this week we’ll be grilling our old MAF friend, Kenny Fitzgerald, on the subject of the ‘confirmation statement’. What, pray tell, is that all about, Kenny?
This confirmation statement, Kenny… is it a tax thing? It sounds like it might have something to do with religion.
Assuming taxation isn’t an alter you worship at, then it’s certainly not the latter. It is, in effect, a replacement that is being brought in for an older system – the annual return.
So we don’t have to do our annual tax return anymore? Isn’t that cause for celebration?
Hold on, now! Step away from the champagne! I didn’t say you can avoid doing your annual tax return. The confirmation statement replaces the annual return that dealt with the public register – the database where they keep information on all businesses in the UK. Traditionally, they required you to log company data annually – what Companies House have called ‘an annual snapshot’ – but with this new system they’re asking you to check and confirm (or update) your info online.
So it’ll be a simple yay or nay, and off we go?
Well, you could put it like that, especially if you were feeling Elizabethan. I’d prefer to put it like this: it’s a little like a digital version of the electoral roll checkups that you get through your door. If nothing has changed, there’s no need for rigorous form-filling. A simple check up and approval is all that’s required.
Is there anything specifically different that we need to be aware of?
It’s cheaper to do it online (£13 digitally, compared to £40 if you file using paper) which appears to be another nod towards HMRC’s Making Tax Digital rollout, although it has been cheaper now to file in this way for some time. It’s also worth knowing that, on your first confirmation statement at least, you’ll need to include information on the people who are registered as your PSCs.
Your PSCs?
Yes – it stands for People with Significant Control, and it’s a separate register that was started in April of this year. They class PSCs as people who:
- hold more than 25% of a company’s shares
- hold more than 25% of a company’s voting rights
- have the right to appoint or remove the majority of directors
It’s also worth noting that there are two further, less common, options that may suggest someone is a PSC. These are:
- any individuals who have the right to exercise or actually exercise significant influence or control are PSCs
- where a trust or a firm meets one of the three statements above, any individuals with significant control or influence over that trust or firm are PSCs
As usual, any confusion over this kind of thing could easily be cleared up in a one-to-one chat with a good accountant.
Is there anything you think we’d need to have prepared before we set to work on our confirmation statement?
“Setting to work” on it makes it sound like a much more labour-intensive thing than it actually is. Very simply, you just need to check online to see whether Companies House has your details correct. In the event that they don’t, you may need to supply them with a few extra documents – a change to your registered address, for example – but you don’t need to worry about taking days out of your schedule to sort your confirmation statement out.
And when does all of this take place?
It’s already underway, having kicked off on June 30th. From here on in, you’ll be expected to follow the new procedures. You should note, also, that the 28-day grace period has changed to 14 days, so a confirmation statement made for 30 September 2016, for example, must be filed by 14 October 2016. Again, your accountant will be able to remind you of when it’s due, and customers signed up to My Accountant Friend will be getting regular notifications, as always.
Kenny Fitzgerald is an online accountant working with My Accountant Friend. If you have any questions regarding the confirmation statement and the changes to the annual return, please get in contact and they’ll be happy to answer them for you.
