Undoubtedly one of the most common queries that we get here at Company Formation MadeSimple is about what the difference between two very important filing obligations are for a limited company. These are Confirmation Statements and Annual Accounts.
Both are very significant documents that you are required by law to file, so it’s very important that you know exactly what the difference is between the two. This blog will tell you all you need to know about both documents and, significantly, the differences between the two.
What is a Confirmation Statement?
- Essentially it is a snapshot of your company’s information and its overall make up.
- So it will contain the general information on your directors, PSCs and also their business addresses.
- It will also contain the information on the company’s shareholding and its overall share capital.
- It must be filed every 12 months – even if your company isn’t currently trading.
- You must file your Confirmation Statement within 28 days of your due date.
- If a Confirmation Statement is not filed Companies House will simply strike your company off their register.
- Limited company Confirmation Statements can be done in a few ways: You can do it by yourself, with the help of an accountant, or we can do it for you. See our various Confirmation Statement services here for more information.
What is an Annual Account
- This looks at different factors of your company.
- Rather than assessing your company’s initial information Annual Accounts instead take a closer look at your company’s financial records.
- Typical Annual Accounts will contain key information such as profit and losses; a directors report; an auditor’s report and some kind of balance sheet detailing the business assets or any debts that it might have to pay.
- Annual Accounts must be filed at least once every 12 months – even if your company is not trading.
- If your company is dormant/non trading then you have to file something called Dormant Company Accounts. This is something we offer – see here for more information
- A company’s first set of accounts should be delivered no later than 21 months after formation
- It also needs to go to HMRC as a part of your Self Assessment tax return.
The key differences
So whilst both of these documents are often confused, ultimately both are very different. For example a confirmation statement is a screenshot of your company whilst annual accounts look more at how your company has been performing.
Think of the Confirmation Statement as something that looks at the surface of your company, whilst accounts are purely financial. Both compliment each other in the sense that bodies (such as HMRC and Companies House) want to know firstly who are your company’s directors and how the company has performed over the stated period of time.