What Is a Confirmation Statement and Can You File It Without an Accountant?

Running a business in the UK involves meeting various legal obligations, one of which is filing a confirmation statement. Many business owners find themselves asking, "what is a confirmation statement?" This essential document plays a critical role in ensuring that Companies House has accurate and up-to-date information about your company. While some entrepreneurs rely on accountants to handle this task, others wonder if they can file it independently. In this blog post, we’ll explore what a confirmation statement is, why it matters, and whether you can confidently file it without professional help.

What Is a Confirmation Statement?

A confirmation statement is an official document that companies in the UK must submit to Companies House at least once every 12 months. It serves as a snapshot of key details about your business, including its registered office address, directors, shareholders, and share capital. Unlike annual accounts, which focus on financial performance, this process verifies the accuracy of your company’s public records. If you’ve ever wondered, "What is a confirmation statement?" it’s essentially a way to ensure that all critical information about your business is up to date and accessible to stakeholders like creditors, investors, and regulators.

When filing a confirmation statement, you review the information currently held by Companies House and confirm whether it remains correct or requires updates. For instance, if there have been changes such as appointing a new director, updating shareholder details, or altering your registered office address, these amendments are included in the submission. This process ensures transparency and accountability, giving stakeholders confidence in the reliability of your company’s data.

The confirmation statement replaced the Annual Return in 2016, streamlining the reporting process for businesses. Instead of providing extensive details annually, companies now simply confirm existing information or make necessary updates. Understanding what a confirmation statement is and why it matters is essential for fulfilling this obligation effectively and maintaining compliance with regulatory requirements

Why Is a Confirmation Statement Important?

Filing a confirmation statement is not just a legal requirement; it also plays a vital role in maintaining your company’s credibility and compliance. Here’s why it’s so important:

1. Legal Compliance: Failing to file a confirmation statement can result in penalties, fines, or even the dissolution of your company. Companies House takes non-compliance seriously, and consistent neglect can lead to severe consequences.

2. Transparency: A confirmation statement ensures that your company’s public records remain accurate. This transparency builds trust with stakeholders, including customers, suppliers, and potential investors.

3. Operational Efficiency: Keeping your company’s information up to date reduces the risk of missed communications or administrative errors. For example, if your registered office address is incorrect, you might miss important correspondence from Companies House or other entities.

4. Reputation Management: Businesses with outdated or inaccurate records may appear disorganized or unreliable. Regularly filing a confirmation statement demonstrates professionalism and attention to detail.

5. Facilitating Transactions: Whether you’re seeking funding, entering into partnerships, or selling your business, having accurate records simplifies due diligence processes and enhances your company’s appeal.

By understanding what a confirmation statement is and its significance, you can appreciate why timely filing is crucial for your business’s success.

Can You File a Confirmation Statement Without an Accountant?

Now that we’ve covered what a confirmation statement is, let’s address the burning question: can you file it without an accountant? The short answer is yes, absolutely! While accountants often handle this task for their clients, the process is straightforward enough for most business owners to manage independently.

1. User-Friendly Online System

Companies House provides an intuitive online platform for filing confirmation statements. The system guides users through each step, making it easy to review and update your company’s details. Even if you’re unfamiliar with the process, the platform offers clear instructions and prompts to ensure accuracy.

2. Minimal Financial Data Required

Unlike annual accounts, which involve complex calculations and financial disclosures, a confirmation statement focuses primarily on administrative information. Since it doesn’t require detailed financial analysis, you don’t need advanced accounting skills to complete it.

3. Cost Savings

Hiring an accountant to file a confirmation statement typically incurs additional fees. By handling it yourself, you save money while gaining valuable experience in managing your company’s compliance obligations.

4. Empowerment and Control

Taking charge of your confirmation statement gives you greater control over your business’s administrative processes. It also deepens your understanding of what a confirmation statement is and how it fits into your overall responsibilities as a business owner.

That said, there are scenarios where hiring an accountant might be beneficial. For instance, if your company undergoes frequent changes—such as adding new shareholders or altering its structure—an accountant can help ensure accuracy and efficiency. Additionally, if you’re unsure about any aspect of the process, seeking professional advice can provide peace of mind.

Benefits of Filing Your Own Confirmation Statement

Filing your own confirmation statement offers several advantages beyond cost savings. Let’s explore some of these benefits:

Time Efficiency

With the online system provided by Companies House, filing a confirmation statement usually takes less than an hour. By setting aside a small amount of time, you can fulfill this obligation quickly and move on to other priorities.

Improved Knowledge

Handling the process yourself enhances your understanding of what a confirmation statement is and how it impacts your business. This knowledge empowers you to make informed decisions and stay compliant in the future.

Reduced Dependency

Relying on an accountant for every administrative task can create dependency. By learning to file your own confirmation statement, you build self-reliance and reduce reliance on external support.

Customization

When you manage the filing process, you have full control over the timing and content of your submission. This flexibility allows you to align the task with your schedule and preferences.

Confidence Boost

Successfully completing a confirmation statement on your own boosts your confidence in managing other aspects of your business. It reinforces your ability to navigate regulatory requirements independently.

Importance of Accuracy When Filing a Confirmation Statement

While filing a confirmation statement without an accountant is entirely feasible, accuracy remains paramount. Mistakes or omissions can lead to complications, such as rejected submissions or delays in processing. To avoid these issues, double-check all information before submitting your confirmation statement. Pay close attention to details like:

• Registered office address
• Director and shareholder information
• Share capital and allocation
• Persons with significant control (PSC) details

If you’re uncertain about any aspect of what a confirmation statement entails, consult Companies House’s guidance resources or seek clarification from a professional. Remember, the goal is to maintain accurate and transparent records that reflect your company’s current status.

Conclusion

Understanding what a confirmation statement is and its role in your business’s compliance journey is essential for every entrepreneur. While accountants can assist with the filing process, many business owners successfully manage it independently using Companies House’s user-friendly tools. By taking charge of your confirmation statement, you save costs, gain valuable insights, and demonstrate your commitment to maintaining accurate records.

Whether you choose to file it yourself or enlist professional help, prioritizing this obligation ensures your business remains compliant, credible, and ready for growth. So, the next time someone asks, “what is a confirmation statement?” you’ll know exactly how to explain its importance and confidently tackle the task yourself.