Charlotte Reeves
Two filings, two different jobs
If you run a limited company, you will hear the phrases "annual accounts" and "confirmation statement" mentioned in the same breath. They are not the same document, they are not filed for the same reason, and they do not always fall due on the same date. Understanding the difference early saves a great deal of stress, because both are legal obligations rather than optional admin.
In short, annual accounts show how the company has performed and what it owns and owes. The confirmation statement confirms that the basic information Companies House holds about your company is still correct. One is financial, the other is factual.
Annual accounts: the financial picture
Every limited company must prepare annual accounts for each financial year and send a copy to Companies House. Most companies also need to file a set with HMRC alongside their Company Tax Return, although the deadlines differ.
The accounts normally include a balance sheet, a profit and loss account, notes to the accounts, and — depending on size — a directors' report. Small companies can file abridged or filleted accounts in some circumstances, which means less detail goes on the public record. That can be appealing, but it is worth checking whether your bank, lender or investor needs fuller figures before you decide.
Your first accounting period usually runs from the date of incorporation to the last day of the month in which the first anniversary falls. After that, periods typically run for twelve months. Your filing deadline is normally nine months after the end of the accounting period. For a company with a 31 March year end, that means 31 December.
If you are a very small company, you may qualify for audit exemption. That does not mean you can skip bookkeeping. You still need accurate records to prepare the accounts and to support your tax return.
The confirmation statement: keeping the register accurate
The confirmation statement replaced the annual return in 2016. It is a simple but important document. Rather than restating all your company details, it confirms that the information Companies House already holds is correct as at a specific date.
Before you file, you should check the following:
- The registered office address
- The directors and their service addresses
- The company secretary, if you have one
- The people with significant control (PSC) register
- The statement of capital and shareholder information
- The Standard Industrial Classification (SIC) code describing your activity
If anything has changed during the year, you cannot simply amend it on the confirmation statement. You must file the relevant update — for example, an appointment or termination of a director, or a change of registered office — separately, and then confirm the corrected position.
The confirmation statement is due at least once every twelve months, within fourteen days of the end of your review period. Your review period usually ends on the anniversary of incorporation. Many directors file it early, once they are satisfied the details are right, and that is perfectly acceptable.
Deadlines, and what happens if you miss them
Late filing is one of the few areas where Companies House takes a firm, automatic approach. Penalties for late accounts are levied on a sliding scale, starting at £150 for a private company filing up to one month late and rising to £1,500 for more than six months late. If you file late two years in a row, those penalties are doubled. Persistent default can ultimately lead to directors being struck off or prosecuted.
It is worth noting that late accounts can also affect your credit rating, your ability to obtain finance, and your standing with HMRC. Accountants see this often: a business that is trading perfectly well suddenly struggles to open a trade account because a filing slipped.
For the confirmation statement, the sanction is different but still uncomfortable. Failure to file is a criminal offence, and the company and its officers can be fined. Companies House can also begin the process of compulsory strike-off, which dissolves the company and passes its assets to the Crown.
Practical habits that keep you out of trouble
A little routine goes a long way. Set reminders for your year end, your accounts deadline and your confirmation statement review date, and put them in a shared calendar rather than relying on memory.
- Keep bookkeeping current — monthly is far easier than an annual scramble.
- Tell your accountant immediately when directors, shareholders or addresses change.
- Check your company's public record at least once a year, and correct anything that is wrong.
- Diary the HMRC payment deadlines too, which are usually earlier than the Companies House filing date.
- If you are struggling, speak to your accountant before the deadline, not after it.
Directors are personally responsible for making sure these filings happen. Delegating the work to an accountant is sensible, but the legal duty remains with you. Signing off accounts you have not read, or assuming someone else has filed the confirmation statement, are two of the most common — and most avoidable — mistakes we see.
Handled calmly, both filings take very little time. Handled late, they generate penalties, correspondence and unnecessary worry. A short conversation with your accountant each year will confirm exactly what is due, when, and what is expected of you.
