Author Archives: David Goulden

What’s the difference between a Confirmation Statement and an Annual Account?

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What's the difference between an Annual Return and an Annual Account

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.

Here at Companies MadeSimple we understand the importance of supporting your business at its early stages. For more information on what we can do for your business see here

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.

We hope that this has cleared up any confusion that you may have had regarding this. If you are interested, we can help you file your Confirmation Statement – see here for more information.

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8 ways you know you’re an entrepreneur in the making

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8 ways you know you're an entrepreneur in the making

Business dictionary.com define an entrepreneur as “Someone who exercises initiative by organizing a venture to take benefit of an opportunity”  This might describe what an entrepreneur is – but is there a set of qualities that an individual needs to become one? How do you know if you have what it takes to go it alone and start your own business? Let’s have a look at some key pointers that tell you whether you’re an entrepreneur in the making:  Continue reading

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7 funding routes to help your business grow

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7 funding routes to help your business grow

You have started a business but you’re short of one very important thing… money. Having an extra source of capital can help your business in a number of ways: You could hire new staff, acquire a new office space, build a new product, go live with a marketing campaign, and of course much more. But where on earth do you get funding from? Finding the right place for this can be tricky. With this in mind, we have done some investigating to give you an idea of the most popular funding routes available to you and your business. Read on to find out more.  Continue reading

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UK really is open for business! More than 170,000 non-UK nationals formed companies here in 2015

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  • Number of non-UK nationals forming companies in UK has soared by 160% since 2010
  • More than 14,000 companies were formed by Polish nationals through Companies House last year

Thousands of overseas entrepreneurs are forming companies in the UK to avoid red tape in their own countries, according to research from start-up specialist Made Simple.

More than 170,000 non-UK nationals registered firms with Companies House in 2015, a staggering 160% increase since 2010.

The figures support the current ‘open for business’ sentiment being echoed by some of the country’s leading politicians and business leaders post-Brexit.

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6 moments of entrepreneurial inspiration from HBO’s Silicon Valley

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6 moments of entrepreneurial inspiration from HBO's Silicon Valley

The life of a startup is full of ups and downs. Fortunately, there is a simple way to prepare for the tough road ahead… watch the HBO show Silicon Valley. Whilst some shows and films may teach a few business lessons, Silicon Valley is an incredibly accurate case study that startups can genuinely learn from (whilst also being ridiculous and hilarious).  Continue reading

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UK limited company formation – The different company structures

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Uk limited company formation : Different company structures

Starting a limited company is one of the most popular ways for entrepreneurs to go into business in the UK. But did you know that there’s multiple ways to structure a limited company? These different structures suit different types of businesses, what’s suitable for one business may be inappropriate for another.  Continue reading

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What exactly is a startup?

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What exactly is a startup?

Startup – possibly one of the most overused words today. Startup culture, startup business, startup mentality. Some countries – Israel for example – have even been described as a startup nation. The term is clearly widespread, but what exactly does it mean to be a startup? It can’t be enough to work in a co-working space and sit on bean bags to be described as one, surely? Well as you will see in this post, there is more than one way to define a startup: Continue reading

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5 failed products from massive companies

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5 failed products from massive companie

Introducing a new product or service to compliment what you already offer is often a great idea as it can contribute to extra revenue and give your brand a whole new audience. However, it is important to act with a degree of caution. A disastrous product launch can be extremely costly for any business, big or small. Here are five examples of poor products launched by some of the world’s largest companies. Continue reading

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