Rural businesses urged to confirm PSC Register details to avoid penalties

Rural businesses have been urged to act on Company House reminders that require people to ensure that the register of those with significant control is up to date.

Formally known as an Annual Return, companies are now required to file a Confirmation Statement confirming that their details held by Companies House are correct. A fee of £13 is payable for this procedure.

The rules came into effect on 6 April 2016, requiring a register to be kept listing those people who have significant control within a company.

Sally Appleton, Partner at chartered accountants Saffery Champness, explains: "This is purely a formality, but the penalties for not filing a Confirmation Statement are onerous - £5000, a downgraded credit rating, and ultimately the business being struck off.

"If you cannot meet the deadline stated on the reminder, for whatever reason, then we advise letting Companies House know at the earliest opportunity to avoid penalties being imposed."

People with significant control are individuals who meet one or more conditions contained in Government-issued guidance.

Among these being: directly or indirectly holding more than 25 per cent of the shares, or 25 per cent of the voting rights; directly or indirectly having the right to appoint or remove a majority of directors; or simply having the right to exercise, or actually exercising, significant influence or control.