Identifying your Persons with Significant Control and preparing a Confirmation Statement
As a small business, youâ€™re no doubt fed up with the ever-changing nature of business legislation. But the Small Business, Enterprise and Employment Act is a change in the law that you really do need to pay attention to, as itâ€™s going to have a significant effect on how you meet your legal and financial requirements.
The Act came into law back in March 2015, with a three-point aim of:
If the idea of this doesnâ€™t set your world on fire (and frankly we can understand why it might not), then hereâ€™s the reason you need to pay attention.
As part of the Act coming into law, you have two new obligations as a small business:
Paying attention now?
Good. Letâ€™s look at both of these requirements in turn.
Persons with Significant Control
Are you a UK limited company or limited liability partnerships (LLP)? If so, from April 2016, youâ€™re going to have to keep a register of the â€˜Persons with Significant Control (PSC) in your business.
What makes someone in the business a PSC?
A PSC is anyone in your company or LLP who meets one or more of the conditions listed below. This is a person or legal entity who:
One of the main reasons behind this change is to improve transparency around who owns and controls UK businesses. Thereâ€™s also the aim of improving the UKâ€™s reputation as a fair place to do business.
You can find out more information and guidance on PSCs here
Confirmation Statement â€“ â€˜Check and Confirmâ€™
The new Act also brings in the need to file a â€˜confirmation statementâ€™ â€“ replacing your requirement to file an annual return.
At present, you have to file a return annually with the Registrar of Companies giving detailed information about your company, shareholders, directors and share capital. But, in many cases, this simply duplicates information thatâ€™s already been filed in previous years or event-driven filings throughout the year.
The new confirmation statement replaces the annual return from June 2016. And its chief aim is remove that requirement to file duplicate information about the company. Instead, youâ€™ll confirm that all the right information has either been delivered to the Registrar as required during the year, or is being delivered with the confirmation statement.
Unlike the annual return, thereâ€™s no set date each year on which the confirmation statement needs to be made. It can be made at any time, although there canâ€™t be more than 12 months between each confirmation statement.
This rolling 12-month window means that you can combine making your confirmation statement with another filing at any point during the year â€“ making your company admin a whole lot easier.
Getting ready for these changes
With April just around the corner, thereâ€™s a certain imperative to get your business ready for the PSC requirements and get up to speed on the confirmation statement changes.
At Caplan Associates, our philosophy is always to help our clients deal with changes in legislation swiftly and effectively â€“ the sooner you act, the more time you have to deal with any new regulatory requirements, after all.
If you want to know more about registering your companyâ€™s PSCs, or the impact of the move from annual returns to confirmation statements, please do get in touch to arrange a catch-up. Weâ€™d love to help your business meet these new requirements.