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As a result of the Government’s vow to increase corporate transparency, companies in the UK will be required to maintain a PSC register from the beginning of the new tax year. Not to be confused with the annoyingly identical acronym for ‘Personal Service Company’, in this case PSC stands for ‘Person of Significant Control’.
This new process may sound daunting, but it won’t add much to your workload at all. In fact, you’re likely to be doing most of this admin anyway. For your peace of mind, here is the PSC register in a nutshell.
Each company will have to record information on who owns shares or directly influences its decisions. This information will be provided as follows:
This data will be visible on the central public register at Companies House, so investors will have a better idea of what they’re getting themselves into when thinking about investing in a company. Money laundering investigations will also be aided by this register, which of course will need to be kept up to date at all times.
Persons of Significant Control and their companies are obliged to provide these details. Those who do not take appropriate measures (or provide falsified details) face a fine or even imprisonment.
The new registers must begin on 6th April 2016 alongside any existing registers of directors or members (shareholders) and need to be in place by 30th June 2016. From the same date, newly formed companies will need to include information on Persons of Significant Control as part of their incorporation application.
The Department for Business Innovation and Skills has advised that a PSC is an individual who:
The first two points are fairly straightforward, but the third is slightly subjective – if you feel this applies to your situation, we recommend you seek professional advice.
The register must be kept at the company’s registered office. If your registered business address is that of your accountant, and it is part of their service to keep company records, this is where the register will be held.
As of 26th June 2017, PSC changes can no longer be updated on your Confirmation Statement. Instead, you have 14 days to update your PSC register and a further 14 days to inform Companies House of any changes.
For each PSC, the following information will need to be disclosed:
Over the last few months of 2017 and the whole of January, client managers are busy reminding people of upcoming deadlines and things they’ll need to do to make it easy for them to keep on top of their Self Assessments.