For a small business owner, Companies House paperwork can easily fall down the list of priorities. Customers need attention, invoices need sending and there are always plenty of other jobs competing for time.
The problem is that company filing deadlines do not disappear just because a business is busy.
Some Companies House requirements are relatively straightforward, but overlooking them can lead to penalties or create problems later. This is especially worth remembering for directors who run a company alongside other work, or who have a company that is currently inactive.
A company does not switch off when business slows down
It is tempting to think that filing obligations only matter when a company is actively doing business. In practice, a limited company continues to have responsibilities even during a quiet period.
A company might have no sales for several months, be waiting to start trading, or simply be kept on the register while its owners decide what to do next. None of those situations should mean that Companies House correspondence is ignored.
Directors should know when their company’s next filings are due and make sure the information held on the public register remains accurate.
The annual confirmation statement
The confirmation statement is one of the regular filings that companies need to deal with.
Its purpose is fairly simple: it gives Companies House a yearly check on the information recorded for the company. Details such as the registered office, directors, shareholders and people with significant control may need to be confirmed or updated.
Even if nothing has changed, a company still needs to submit its confirmation statement within the required period.
For a director who wants to avoid spending time navigating the filing process, an online service can be used to file confirmation statement without having to deal with the paperwork manually.
It is worth remembering that updating company information and submitting a confirmation statement are not necessarily the same thing. If something changes during the year, the appropriate information should be updated when required rather than waiting for the annual statement.
What about companies that are not trading?
Inactive companies are another reason why directors should keep their filing dates in view.
A company can be dormant for Companies House purposes when it has had no significant accounting transactions. This can happen for several reasons. Perhaps the business has not started trading yet, or perhaps the owner has put the company on hold temporarily.
Being dormant does not mean the company has ceased to exist.
Dormant companies generally still need to submit accounts to Companies House. The accounts are usually simpler than those prepared by an active trading company, but there is still a filing deadline.
For directors who would rather leave the submission to a specialist, an online service can be used to file dormant accounts when they are due.
That can be particularly useful for people who have kept a company registered but are not dealing with it on a day-to-day basis.
Two filings, two different purposes
Another source of confusion is the assumption that company accounts and a confirmation statement are part of the same filing.
They are not.
Accounts deal with the company’s financial information for the relevant accounting period. The confirmation statement is focused on information about the company itself.
A director therefore needs to keep track of both where both apply. Filing the accounts does not remove the requirement to submit a confirmation statement, and submitting a confirmation statement does not replace the accounts.
Having separate reminders for the two can make the annual administration considerably easier.
Checking the company’s details
Filing deadlines are not the only thing worth keeping an eye on.
Company information can change during the year. A business may move office, appoint a new director or change its ownership structure. When that happens, the relevant Companies House information needs to be dealt with rather than left sitting on the register indefinitely.
This is particularly important because Companies House information is publicly available. Customers, suppliers, lenders and other businesses may use the register when checking a company.
Keeping those details current is therefore useful beyond simply meeting a filing obligation.
A straightforward annual routine
There is no need for company administration to become a major project.
A director can start with a simple list of the company’s important dates and set reminders well ahead of each deadline. It also helps to check Companies House periodically and keep company records organised throughout the year.
For an active business, that might form part of the normal accounting routine. For a dormant company, it may only require attention a few times a year.
The important thing is not to assume that a quiet company has nothing to do.
Small businesses often operate with limited administrative resources, so anything that reduces the chance of a missed deadline is worthwhile. Some directors handle their filings themselves, while others prefer to use a specialist service for routine submissions.
Either way, knowing what is expected is the starting point.
Companies House compliance may not be the most visible part of running a business, but it is an important one. Keeping filing dates under control, checking company information and dealing with annual requirements on time can save directors from a much bigger administrative headache further down the line.
Tina Johnson helped bring The Marketing Folks from a-weekly newsletter to a full-fledged news site by creating a new website and branding. She continues to assist in keeping the site responsive and well organized for the readers. As a contributor to The Marketing Folks, Tara mainly covers industry new.
