What Exactly Is An Annual Return? How Should It Be Filed?

 What Exactly Is An Annual Return? How Should It Be Filed?

If you are a registered company owner or director in the United Kingdom, you must submit an Annual Return (Confirmation Statement) to Companies House every year after the company's incorporation. Keep in mind that the annual return (after June 30, 2016) is now referred to as the "Confirmation Statement." Continue reading to learn what an annual return is, what information it contains, and how and when to submit it.

What Is A Confirmation Statement (Annual Return)?

It displays a snapshot of the company's general information, such as:

  • Annual Profit
  • Director information
  • Secretary of the corporation (if appointed)
  • Registered office location
  • Contact information
  • Capital stock
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The nature of the company

It is submitted on Form AR01 and provides Companies House with accurate information about your company within a certain time period each year. The filing date of this document is usually one year after a company's establishment.

Keep in mind that yearly returns are not the same as tax returns or annual reports of a corporation. They are also submitted on separate dates.

What Information Is Included in an Annual Return?

The Annual Return form includes the following information:

  • The Company's Name
  • The Company's Registration Number
  • Type of business (like private, public, etc.)
  • The primary activities of the company (SIC Code)
  • Registered office of the company (including SAIL address)
  • Secretary's Contact Information (if you have one)
  • Information on the company's shares
  • Details about the company's director
  • Shareholder information
  • a list of people with significant power (PSC)

How Do You Send In Your Confirmation Statement?

The Companies House WebFiling tool is the simplest way to file your annual return online. Payment by Paypal or credit card is just £13. If you prefer to submit by post, you will need to complete out paper form AR01, which costs £40.

You must first register for Webfiling Services before submitting your application. Companies House will issue an authentication code to your registered office address once you have registered.

What Happens If You Have To Report Changes?

HMRC states that you can make the following adjustments to your statement at the same time:

  • Capital
  • Information for shareholders
  • SIC numbers
  • However, you cannot report these changes:
  • the address of the registered office
  • Officers of your company
  • people in positions of substantial power
  • the location where your records are kept

To make these modifications, you must submit them with Companies House individually.

When Should You Submit It?

Companies House will send you an email alert or a letter to your registered office address if your annual return is due. The submission deadline is usually 12 months following the date of your company's establishment or the date you filed your most recent confirmation statement (annual return).

Keep in mind that you must file it within 14 days of the due date or risk being fined up to £5,000 and having your company removed from the Companies Register.

To summarise

Hopefully, you now have a fundamental understanding of what an annual return is, what it includes, and how and when to submit it. It should be noted that, beginning of June 30, 2016, the yearly return was replaced with a confirmation statement. Furthermore, you must be aware of the submission dates; otherwise, you may be penalised and your organisation may be barred.

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