Rural businesses should confirm their PSC Register details to avoid penalties

9 May 2018

tractor ploughing field

Rural businesses should act on reminders currently being issued by Companies House that require companies to ensure that the people with significant control (PSC) register 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.

Sally Appleton, a partner and a member of Saffery Champness’ Landed Estates Group, comments:

“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. This is purely a formality, but the penalties for not filing a Confirmation Statement are onerous: £5,000, 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% of the shares, or 25% 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.

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Sally Appleton

Partner, Harrogate

Key experience
Sally is a member of the firm’s national Landed Estates Practice and acts for a number of landed estates, advising...