Important Changes to the Confirmation Statement
What You Need to Know About the Economic Crime and Corporate Transparency Act
The Economic Crime and Corporate Transparency Act has brought about significant changes to company reporting requirements, particularly regarding the confirmation statement. As a business owner or company director, it’s crucial to understand these updates to ensure your company remains compliant. In this blog post, we’ll explore the key changes introduced by the Act, focusing on the new requirements for filing a confirmation statement.
What Is a Confirmation Statement?
A confirmation statement is a legal requirement for all companies registered in the UK, including dormant and non-trading companies. It’s a way of confirming that the information Companies House holds about your company is accurate and up to date. This must be done at least once every year, even if there have been no changes during the review period.
New Requirements Under the Economic Crime and Corporate Transparency Act
The Economic Crime and Corporate Transparency Act, which came into effect on 4 March 2024, has introduced new rules that all companies must follow when filing their confirmation statement. Here’s what you need to know:
1. Registered Email Address
One of the key changes introduced by the Act is the requirement for all companies to provide a registered email address. This email address will be used by Companies House to communicate with your company, ensuring that you receive important information and updates promptly. However, it’s important to note that this email address will not be available to the public, preserving your privacy.
For New Companies: Any company incorporated from 4 March 2024 onwards must provide a registered email address at the time of incorporation.
For Existing Companies: If your company was incorporated before 4 March 2024, you’ll need to provide a registered email address when you file your next confirmation statement, with a statement date from 5 March 2024 onwards.
Ensuring your email address is up to date and accurate is essential, as Companies House will use this for all official communications.
2. Statement of Lawfulness
Another significant change is the introduction of a requirement for all companies to confirm that their intended future activities are lawful. This statement must be made every year as part of your confirmation statement.
Mandatory Confirmation: From 5 March 2024 onwards, you will not be able to file your confirmation statement without including a statement confirming that your company’s future activities will be lawful. This applies to all companies, regardless of size or type.
This new requirement underscores the government’s commitment to ensuring that companies operate within the law and that the UK remains a safe and reputable place to do business.
3. Filing a Confirmation Statement Without Changes
Even if there have been no changes to your company’s information during the review period, you are still required to file a confirmation statement. The process involves reviewing the information that Companies House holds about your company, confirming its accuracy, and submitting the statement.
It’s important to stay on top of this annual obligation, as failing to file a confirmation statement can lead to penalties or even the striking off of your company from the register.
How Lloyds Accountancy Can Help
At Lloyds Accountancy, we understand that keeping up with regulatory changes can be challenging, especially when running a business. Our team of experienced accountants is here to help you navigate these changes and ensure that your company remains compliant with all legal requirements.
We can assist you with preparing and filing your confirmation statement, including the new requirements introduced by the Economic Crime and Corporate Transparency Act. Whether you’re setting up a new company or managing an existing one, we’re here to provide the guidance and support you need.
The recent changes to the confirmation statement process under the Economic Crime and Corporate Transparency Act highlight the importance of staying informed and compliant with company law. If you have any questions or need help with your confirmation statement, don’t hesitate to contact Lloyds Accountancy. We’re here to help you keep your business on track and in good standing with Companies House.
