chicka
Blogger
Share this content
0
7321

Register of persons with significant control

Register of persons with significant control

From 6 April 2016 all companies are required to keep a register of Persons with Significant Control (PSC) which is kept with the statutory records.

As most advisors keep the statutory records and prepare the annual returns (or annual confirmation statements from 30/06/16), what are most people doing regarding the leg work on this?

I have so many other things to be doing before April I wondered whether others were just completing them as the annual returns/conf statements were done over the next 12 months (unless requested by Co House sooner) or are people doing them all in one go before 06/04/16?

And is anyone adding any additional charges for doing this? It is going to be very time consuming.

Thanks in advance

Chicka

Replies

Please login or register to join the discussion.

avatar
By AS Ltd
04th Mar 2016 08:58

PSC Register

Chicka

The legal obligation is for the PSC register to be in place from 6 April 2016 so you cannot wait until the next confirmation statement is filed I am afraid. Failure to comply with the above is a criminal offence committed by both the company and every officer (includes directors AND company secretaries) in default punishable by a fine and/or up to 2 years' imprisonment.

As the PSC register cannot be empty (it must at least contain the relevant note that the enquiries are being made (prescribed wording is set out in Non-Statutory Guidance issued by BIS)) at any time and individual PSC's details must be confirmed by him/her in advance of them being entered on the register, presumably you can pre-prepare the requests for information in advance (again, examples are provided in the guidance) and send them all out on 6 April. This would buy you some time although you would still have to make the entries in the register pending receipt of information.

Agreed that it is time consuming but whether and how much more you charge would arguably be determined by complexity of the holding structures of companies you look after. 

Hope the above helps.

 

 

Thanks (0)
04th Mar 2016 09:10

I appreciate that for complex companies with multiple shareholders, especially where some shareholders are nominees for other persons, there will be work to do and new information to disclose..

But at the other extreme - a one person company with a sole director holding all the shares - I can't imagine there can be any significant change in what has to be done and reported other then perhaps an extra box to tick. Can anyone confirm?

Thanks (1)
avatar
By AS Ltd
04th Mar 2016 09:25

The Companies House forms for the above have not been updated yet so it remains to be seen. However, you must not add even sole shareholder's details in the PSC register before he/she confirms that he is in fact a PSC. There is no way of legally avoiding that I am afraid.

S790D Notice (for an individual) (see p.54 of https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/502114/Non-statutory_guidance_for_companies__SEs_and_LLPS__V6_.pdf), which is only an example) does not contain a request for confirmation that a sole shareholder is not holding his shares as a nominee for someone else or that there is no 'joint arrangement' in place in respect of the shares, which I would suggest need to be added before the notice is sent out.

Thanks (1)
05th Mar 2016 10:35

Sole director

AS Ltd wrote:

The Companies House forms for the above have not been updated yet so it remains to be seen. However, you must not add even sole shareholder's details in the PSC register before he/she confirms that he is in fact a PSC. There is no way of legally avoiding that I am afraid.

S790D Notice (for an individual) (see p.54 of https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/502114/Non-statutory_guidance_for_companies__SEs_and_LLPS__V6_.pdf), which is only an example) does not contain a request for confirmation that a sole shareholder is not holding his shares as a nominee for someone else or that there is no 'joint arrangement' in place in respect of the shares, which I would suggest need to be added before the notice is sent out.

Are we seriously saying that a sole shareholder has to write to himself to ask if he's holding the shares for his own benefit and he has to write back to himself to say that he is ?

Even the Government isn't that stupid.

Thanks (0)
avatar
By AS Ltd
05th Mar 2016 11:49

Legally a director and a shareholder is acting in two different capacities, even if it's a sole shareholder company so I would say that, yes. The legislation does not contain any exceptions for one man bands. It is, of course, ridiculous but a sole director who is also a sole shareholder still needs to document written resolutions in two separate capacities so I do not see what the distinction in this case would be.

Thanks (0)
04th Mar 2016 09:32

Having checked on ICAEW's website

All my ltd cos have directors who are shareholders and there is no shadow director lurking.

I appreciate these "registers" have be in place from 6th April, but all I would have to do is list those directors/shareholders on a word doc headed RPC together with their name, address, and DOB plus shareholding percentages and officer status and send them a copy of this I presume.

Then file this at Cos house on 30 June.

Maybe charge £25 for the time?

 

 

Thanks (1)
By JAADAMS
04th Mar 2016 17:09

See Accweb article on this very subject....

>>> PSC register implications for private companies...

The article details the rules, what has to be kept and where. There is a bit more to it than Moonbeam suggests - e.g you need to look at the conditions and indicate which is relevant to the particular PSC.

Also note the wording that must to be used in specific circumstances

You dont have to file with Co House in fact best not to. Keep your own register. You will then only have to tell Co House when there is a change or when you come to complete the new 'Confirmation Statement'.

section 3.2.1 of the Guidance gives exactly what is needed to be included on the register

Thanks (1)
04th Mar 2016 17:20

You are of course right JAAdams!

I have since looked through the legislation and printed off pages and pages on the matter and can see it will be time consuming to set up the data initially.
I did wonder what was the benefit of not filing with Cos House. Confidentiality I suppose.
I am going to have to spend a half day soon preparing relevant question and answer type stuff for each client, and design a mailmerge doc to start the ball rolling, as we must of course get the individual to agree what we record about them.

No problem, what with lots of accounts, VAT returns and payroll year end I'll easily find time at 2.00 in the morning. I will rethink the charge to clients once I've set up the system.

 

Thanks (1)
avatar
By chicka
04th Mar 2016 20:38

Thanks for everyone's replies - I was trying to be lazy and do it gradually, looks like I'm going to have to bite the bullet and do it en masse.

My Limited Company clients are all straight forward and so I suspect once I've done one, I will do the others fairly quickly.

Will probably add a nominal charge for doing this.

Thanks again

Chicka

Thanks (0)
05th Mar 2016 13:18

So what do you actually have to do with the PSC register and why couldnt it have been included in the Anual Return or the new name that its changing to later this year?

 

What is the likelyhood of anyone ever asking to see it?

Thanks (0)
05th Mar 2016 13:51

Might be ....

MissAccounting wrote:

So what do you actually have to do with the PSC register and why couldn't it have been included in the Annual Return .......

I suspect it might be.   Let's wait and see.

Thanks (0)
avatar
By zebaa
05th Mar 2016 13:49

@miss....

Answer, for a one man (or woman) company? About as close to zero as is possible to get, I would have thought.

Thanks (0)
By JAADAMS
05th Mar 2016 16:02

To make it easier...

Simply docs has produced template register, information sheets to send to clients and letters etc

http://simply-docs.co.uk/Guidance-on-the-PSC-Regime/Guidance-Note-Regist...

I'm sending an information sheet round to company clients by email just so I've done my bit in keeping them aware. and will add a bit on the next bill for doing so. Why do it for love?

Thanks (1)
31st Mar 2016 14:08

PSC - What does a company need to do

I have great sympathy with the view that a significant burden is going to be placed on nearly all UK companies (even those with just 1 director/shareholder) and by implication their advisers.

We have been working hard to minimise this and have produced a blog setting out the steps a company must take to comply with the legislation - See http://www.informdirect.co.uk/company-records/psc-register-what-must-a-c...

It includes a simple flow diagram and several examples to explain how the legislation will impact the majority of companies.

It should also be remembered that completing the PSC register is not a one-off task but that it needs to be maintained i.e. If there are any changes in the shareholder base.

How accountants recover their costs for dealing with PSC not just post 5th April but going forward will I expect be a much explored topic.

Thanks (4)
avatar
By GSUK
31st Mar 2016 16:20

Informative

Henry,

This is something that we have received a number of queries on and this article is very useful, clearly setting out what needs to be done.

Thanks,

GSUK

Thanks (0)
By tom123
31st Mar 2016 19:34

Out of interest

If I wasn't a daily reader of this site, I would have no idea this even exists. I work in industry, for a ltd company with a parent company and then a shareholder.

In addition, I have two companies of my own.

I can't recall having received any communication from anywhere that this is required. Now, I know that ignorance of the law is no defence - but even so..

 

Thanks (0)
31st Mar 2016 21:10

So let me get this right.

If I have a company of which I am the sole shareholder and director (all plain vanilla arrangements - I am not anyone else's nominee etc.) unless before 6 Aoril I get out a sheet of paper and head it RPC and write my name underneath I risk being sent to prison?

Thanks (1)
08th Apr 2016 15:51

Government IQ

johngroganjga wrote:
So let me get this right. If I have a company of which I am the sole shareholder and director (all plain vanilla arrangements - I am not anyone else's nominee etc.) unless before 6 Aoril I get out a sheet of paper and head it RPC and write my name underneath I risk being sent to prison?

I said earlier in the thread that even the Government wasn't that stupid.

But, apparently, I was wrong.

Thanks (0)
By tom123
31st Mar 2016 21:49

Apparently so, John,

Who knows John - 

We are world experts in pointless admin in the UK, are we not..

Thanks (1)
avatar
By chatman
to tom123
19th Sep 2016 20:56

tom123 wrote:
We are world experts in pointless admin in the UK, are we not..

You have clearly never lived in a Latin country, Tom

Thanks (0)
avatar
By PALacc
31st Mar 2016 23:04

I created an information sheet and PSC register template that clients could choose to use if they wanted but emphasised that is their responsibility to complete and maintain the register.

I asked them to return a copy to me to keep in their file should they wish to do so.

Thanks (0)
avatar
08th Apr 2016 15:23

PSC Register

If you keep Company Registers at www.ecordonline.com, please note that we have added a new PSC Section.

 

We have done our best to make a potentially time-consuming exercise simple.

 

Once the PSC information has been confirmed, entries in the PSC Register can be made in seconds.  

Thanks (0)
avatar
08th Apr 2016 16:11

PSC Register

Make life easy for yourselves guys!!!!

We use Inform Direct and have completed all out Limited Company's PSPs as they have made the whole thing easy and straightforward.

The register guides you through the whole process step by step and it made a potential headache a breeze.

 

Thanks (0)
09th Apr 2016 16:06

To be honest ....

To be honest, I've asked the directors to confirm that there are no people hidden in the wings but, assuming there aren't, I already had all the information I need to complete these registers.

Nominal fee for a (two page) standard letter.

Typically overstated administration but that's now what I expect from the Government.

Thanks (0)
avatar
13th Apr 2016 15:19

Quick survey of my friends (not clients) who run businesses

....shows not a single one has yet been contacted regarding the PSC stuff, that includes one who runs a fairly large trust operation that holds shares as nominees for companies. Their accountant is a big regional rather than a national though.

Thanks (0)
avatar
13th Apr 2016 17:06

PSC - use Inform Direct

We use Inform Direct for our company secretarial work and their PSC function is very easy to use. As most PSCs (directors, shareholders) are pre-populated you can simply choose from an existing list.  www.informdirect.co.uk

Thanks (0)
avatar
14th Apr 2016 13:18

Inform Direct

We've been using inform direct for some 18 months, and find the software easy and straightforward to use.

The companies helpdesk is very knowledgeable (not just about their system - which you would expect) but also regarding company law and such like.

We are only a small practice, so to have a fee structure based on the number of Limited company clients we have, is proving to be great value for money.

Thanks (0)
20th Sep 2016 21:45

[sigh]

I have one client company who likes to submit their own return. I wrote to them in April and again last month, telling them exactly which persons needed to be declared as PSCs.

Guess what - confirmation statement filed last week. Declares "No persons of significant control".

Why do I bother?

Thanks (3)
Share this content