Confirmation statement fines

Companies House will issue fines to your company if failed to submit your confirmation statement. Your company has 14 days to submit your confirmation statement with Companies House. You can do it online or you can submit the form CS01 by post.

Criminal offence

It is a criminal offence for deliberately not submitting your confirmation statement with Companies House.

Unacceptable excuses

Companies House would usually send reminders to your company’s registered office when your confirmation statement is due for filing. There is no excuse that you are not aware the filings are overdue.

The only time you missed all the Companies House reminders would be that your registered office address no longer valid. You have not informed Companies House of this fact or provide a valid registered office address.

This is still not an excuse because the company law says it is the director’s responsibility to update Companies House if there is any change to your registered office address. The form to file is AD01 in this situation.

Losing your company authentication code as an excuse you are not able to do your filing is not acceptable. This is because you can request the code again from Companies House. Also, you have the option to file the Companies House forms on paper.

Confirmation statement fines

Section 853L of the Companies Act 2006 outlined the fines payable if your company is guilty of an offence and is liable on summary conviction.

CountryFines
England and WalesTo a fine, and, for continued contravention, a daily default fine not exceeding the greater of £500 and one-tenth of level 4 on the standard scale;
ScotlandTo a fine not exceeding level 5 on the standard scale and for continued contravention, a daily default fine not exceeding one-tenth of level 5 on the standard scale.
Northern IrelandTo a fine not exceeding level 5 on the standard scale and for continued contravention, a daily default fine not exceeding one-tenth of level 5 on the standard scale.

Consequently, the daily default fines for failed to submit your confirmation statement can be expensive.

Above all, your company directors, secretaries and any other officers must show that they have taken reasonable steps to avoid continued failing to submit your confirmation statement.

Contact us if your require help with taking care of your company’s confirmation statement.

Dissolve your company

If you no longer want to keep your company, you may apply to Companies House to have it dissolved so that you no longer obliged to file Confirmation statement. The dissolution process take two months to complete provided there is no objections from any parties.

All the directors must sign the DS01 form and your company must have ceased trading for at least three months. All your creditors and shareholders must be notified of this intention to strike off the company from the register.

Even more company dissolution cannot be used as a mean to avoid debts. Your dissolution process would be on hold if there is any objections and Companies House would make contact with your directors.

Understanding balance sheet

Understanding balance sheet would give you clues how to improve and do better in managing your business affairs. Universally, a balance sheet is a standard document that summarize your company’s assets and liabilities.

Companies incorporated in the United Kingdom must follow the applicable accounting standards when preparing a balance sheet as part of the company accounts.

Accountants can tell you a story of your business affairs based on your balance sheet. How much corporation tax to pay and where to sign on your company accounts are the primary reasons you hire an accountant. Don’t stop here, your accountant can do more for you. Ask questions.

There are benefits to understand figures presented in your balance sheet, Firstly, you would need to learn the terminology used in that financial document. In the accounting world, the balance sheet is a statement of your business assets and liabilities at the end of your company’s financial year.

The terminology used in a balance sheet is explained below.

Cash

Money held in hand including coins and currency. Sometimes, they call it petty cash. Cash also money available in your company’s bank accounts. This excludes the overdraft facility you can use and drawdown loans agreed.

Trade Debtors

Amounts not yet collected from your customers or amount outstanding from credit sales. In other words, what your customers still owe you.

Prepayment

Payment in advance that covers the subsequent financial year. For instance, office rent paid in advance.

Stock

Value of products held in stock by your company. The stock value is normally made up of purchases cost, production costs or net releasable value of the products.

Fixed assets (Property, Plant and Equipment)

Amounts of costs invested in long life, tangible, productive, operating assets. People often referred to this type of investment as capital expenditure.

Trade Creditors

Amounts owing to suppliers for unpaid bills and invoices.

Other Creditors

Money owed to HM Revenue and Customs for PAYE, VAT and corporation tax is presented under this heading. This sometimes includes directors’ loans to the business.

Accruals

Commonly, this includes invoices issued after your year-end but for services rendered during the year. For example, the accountancy fee and auditor fee.

Overdrafts and loans

Amounts borrowed on interest-bearing liabilities from the bank and financial institution. For instance, a short term loan for working capital to keep your business going.

Called up share Capital

Amounts of capital invested in the business by owners (shareholders). Usually, a private limited company can have a share as little as £1.

Retained earnings or reserves

Cumulative profits not yet distribute to shareholders. Generally, you can only distribute your profits through dividend after your corporation tax. Correspondingly, if you have insufficient profit after corporation tax then you cannot declare a dividend.

Small, medium sized and large companies

The above is a simple set of balance sheet format that a lot of small limited companies would have. They are more complex balance sheet for medium sized and larger companies.

Dormant company balance sheet

A balance sheet for a dormant company is even more simple. A dormant account literally only have share capital information on the document. For example, the called up share capital and issued share capital.

Another important document

Beside this, you must also deliver your confirmation statement to Companies House once every 12 months.

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