The PSC Register – What Is It and What You Need to KnowApril 22 2016, 0 Comments
Small businesses in the UK will now be required to maintain a PSC register from the beginning of the tax year. If you weren’t already aware of this, the ruling comes as a direct result of the Government’s declaration that they would increase corporate transparency across the board.
It it worth baring in mind that this acronym should not be confused with the identical one for ‘Personal Service Company’ as this PSC register stands for ‘Person of Significant Control’.
You may be worrying already that this is another change that will confuse you but do not fear, this new change won’t add that much in terms of your workload, you’re highly likely to be carrying out the admin already for it anyway. To give you a clear run through of what PSC is, we have broken it down into simple parts for you.
What Is It?
As of April 6th 2016, each company will need to record the information of who owns shares or has an influence upon its decisions. This data will be visible on the public register at Companies House so investors or curious parties will have a clearer idea of what they’re dealing with when thinking about potential investing opportunities into your company. This will all be shown on an Annual Confirmation Statement (Annual Return) which is recorded on the company’s own PSC register.
It will also allow money laundering investigations to be aided by this register and will need to be continuously updated at all times if any changes occur.
Who Classes as A PSC?
The Department for Business Innovation and Skills has advised that a PSC is an individual who:
- If the person has more than 25% of shares or voting rights in the company.
- If they hold the right to appoint or remove the majority of the board of directors of the company.
- If they have the right to enforce substantial control or influence over the company.
Where’s the PSC register stored?
The registered office at the company must keep the register. In the case that your registered business address is in fact located at your accountants (it sometimes comes as part of their service) it is okay to hold the company records wherever that may be.
So What Do I Need to Provide?
Every PSC should contain and disclosure the following pieces of information:
- Date of birth.
- Country or part of the UK where the PSC usually lives.
- Service address.
- Usual residential address.
- Which conditions for being a PSC are met.
- Date when the person became a PSC in relation to the company (for existing companies, 6th April 2016 should be used).
- Notification of whether there has been an application filed for the individual’s information to be privatised.
The Consequences If You Don’t Comply?
The PSC and their companies legally have to provide these details. If the person in question choses not to accommodate to the new measures or even falsifies details for personal benefit, they will face stiff fines or prison time.
The new register should have already have been kept since the 6th of April 2016 along with any previous registers of shareholders or directors and this all needs to be in place by the 30th of June 2016. Also, from this June date, any newly founded businesses will need to include information on Persons of Significant Control as part of their incorporation application.
If you need any advice on this, then please don’t hesitate to get in contact. Issues like this, when the consequences are so high, are worth getting right the first time. Therefore, if you would feel more comfortable speaking to a professional, we are more than happy to help you.