New legislation for farmers operating as companies

All farmers trading as companies or limited liability partnerships must submit a new form to Companies House annually.

The form, known as a Confirmation Statement replaces the compulsory annual return.

The main change is that companies must now give full disclosure of people with significant control (PSC) within the business and not solely details of business owners.

It came into use on 30 June and provides information about the business, some of which is not public.

See also: Insurance law change will increase burden on farmers

The statement also confirms that all information held by Companies House is up to date. This includes principal business activities or standard industrial classification (SIC) code, statement of capital, trading status of shares and shareholder information.

An online form can be submitted costing £13 (or £40 to submit a paper form). Once paid, you can submit as many forms as you like within a 12-month period for no extra charge.

Failure to complete the statement could result in prosecution or risk companies being struck from the register, meaning they would cease to exist and become crown property.

Personal addresses are not made public but farmers who that feel making other personal details public could expose them to risks such as attention from activists can apply for an application for protection.

What makes a Person of Significant Interest (PSC)?

  • Someone who holds more than 25% of the shares
  • Someone who holds more than 25% of the voting rights
  • Someone who holds the right, to appoint or remove a majority of directors;
  • otherwise has the right to exercise, or actually exercises, significant influence or control over the company;
  • has the right to exercise, or actually exercises, significant influence or control over the activities of a trust or firm which is not a legal person, the trustees or members of which would satisfy any of the four conditions above.

Futures markets and commodity risk management online course:

  • Risk management strategies for a more predictable financial performance
  • Educated conversations when collaborating with your advisors
  • Negotiate better prices with your grain merchants

View course