The confirmation statement replaced the Annual Return from 30 June 2016. At the same time, the information required to be included on a statement of capital was simplified so that only the aggregate amount unpaid on the total number of shares needs to be provided. Prior to this, the amount paid and unpaid on each share needed to be provided. See our article from June for more details.
Companies House has updated its guidance on submitting confirmation statements. This is to make it clear that if a company is submitting its first confirmation statement, but has not yet submitted a statement of capital in the new format, it must submit a full statement of capital with that first confirmation statement. The revised guidance can be found here.
Duty to report on payment practices and performance
We noted in our September company law update that the government was planning to lay regulations to give effect to section 3 of the Small Business Enterprise and Employment Act which requires companies to report on their payment practices and performance.
BEIS recently published the government response to its consultation paper seeking views on the duty to report on payment practices and performance .together with the draft statutory instruments required to bring the duty into effect. The regulations differ from those previously published.
Changes to note are that:
- the revised draft regulations will apply to large companies and large LLPs only, based on certain size thresholds
- the regulations require that reports be made on a website provided by the government, so that the information is readily accessible by third parties
- businesses which are in scope will be required to publish reports twice yearly rather than quarterly, which was the original proposal.
The duty to report was intended to apply from April 2016. The government now expects the regulations to come into force on 6 April 2017.