Electronic Company Records - 3 More Great Reasons For Doing Them Online!
Why are electronic company records are good for your business? According to the Law as a limited company you must keep records about the company itself.
These records include details such as:
- directors, shareholders and company secretaries
- the results of any shareholder votes and resolutions
- loans or mortgages secured against the company’s assets
- etc etc
Electronic Company Records - Why You Should Lose The Paper!
You must send Companies House a company annual return every year. If you miss the deadline, Companies House can close down your company or prosecute you. You could also be disqualified from being a company director. It must include details of:
- the company’s registered office address
- what type of business the company runs (eg retail, accountancy, catering)
- the address where the company’s list of shareholders is kept
- etc etc
As we said in a previous blog post Electronic Company Records - 3 Great Reasons For Doing Them Online, the reasons we recommend this to all businesses is that:
- It saves you time
- It save you money
- It saves You making mistakes
Electronic Company Records - More Reasons To Go Online!
These changes blow, form part of the package of reforms introduced in the Small Business, Enterprise and Employment Act 2015, will have a major impact on companies and their accountants.
1. The confirmation statement replaces the annual return
The headline change is the replacement of the annual return with the new confirmation statement.
As with its predecessor, every UK company will need to file a confirmation statement at least once a year. The main differences are:
- There’s no longer a need to re-confirm information, like the names of shareholders, if it hasn’t changed at all in the year covered by the statement.
- Companies must now report details of their Persons with Significant Control in the confirmation statement.
- The confirmation statement features an updated statement of capital.
Companies House will still charge an annual fee for submitting a confirmation statement. However you’ll be able to file statements as often as you like during the year to update the information held on the public record.
2. Submitting Persons With Significant Control details to Companies House
The majority of companies have been required to set up and maintain a PSC Register from 6 April 2016. Recording details of individuals and certain legal entities that exert certain types of influence over the company.
From 30 June, companies will need to start reporting details of their PSCs within their first confirmation statement.
The process of forming a company is changing in a few ways, mostly related to other updates being introduced. The key changes are:
- Companies will now have to include one or more planned trade classifications – the type of business the company will undertake – as part of the IN01 form to incorporate.
- The incorporation application must also include a statement of initial people with significant control. This details the individuals or legal entities who exert certain types of influence over the company.
- The initial statement of capital within the application must be in an updated format.
4. Updated statement of capital
The content of the statement of capital, which provides a snapshot of a company’s share classes, amounts invested in shares and rights attached to them, is being updated.
Whenever you file a statement of capital at Companies House you’ll need to submit it in the new format from 30 June 2016.
5. Holding registers at Companies House
From 30 June, a company may elect to keep certain statutory registers at Companies House, rather than keep them themselves. However, Companies House have stated that they do not expect there to be much uptake given that:
- Private details, such as dates of birth and residential addresses of directors, will be visible online.
- There is no reduction in a company’s workload, since a company will need to file all changes to the registers promptly with Companies House.
- The process required to elect to keep the information on the public register – defined by legislation – is quite burdensome.
More details of the changes are available on this great article from Inform Direct - HERE
Our Electronic Company Records Special Offer
We are really big fans of Inform Direct.
This system is based in the cloud and constantly being updated with new functionality or to keep abreast of new changes such as the Persons of Significant Control register which has just become a requirement for all companies from April 2016.
In this blog post, we summarised the latest changes and how they’ll affect UK companies from the Small Business, Enterprise and Employment Act 2015.
Inform Direct have prepared a wide range of further resources to assist companies and their professional advisers. Their award-winning company secretarial software has been fully updated to support the key changes.
Because Inform Direct provides a comprehensive suite of online registers, their customers get all the benefits without the disadvantages.
If you are one of our clients, then you are covered already by our use of Inform Direct.
This normally costs £72 per annum for an annual subscription to Inform Direct including VAT.
If you talk to us, we can offer all this great online functionality to you for a great price of just £50 per annum plus VAT.
Our Electronic Company Records Call To Action
Don't ignore your obligations as a director or officer to keep proper company records.
Using electronic systems based in the cloud such as Inform Direct save you time, money and making mistakes which can cost you big fines.
Better still buy this fantastic system from us to save you even more money and be more safe from the Companies House bureaucracy.
If you know of any other great reasons why doing only company records electronically can be good for your business or other tips for making this really work that can be shared with our readers then let us know via the comments or through LinkedIn.
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