Companies House Changes

Companies House is implementing some significant changes in 2024 as part of the Economic Crime and Corporate Transparency Act 2023. These changes, which began rolling out on 4 March 2024, are designed to combat economic crime, including fraud and money laundering, and overcome corporate transparency issues.

Further changes involving fee increases will come into force from 1 May 2024, with some fees increasing significantly from previous years. Additional information about the new fees can be seen below.

Verification and transparency

• Companies are now required to provide a registered email address.
• There is an increased emphasis on lawful purposes, with companies needing to confirm that their activities are lawful during incorporation and in their annual confirmation statements.
• New rules stipulate that all companies must have an appropriate registered office address, explicitly banning the use of PO boxes.
• Companies House will carry out more vigorous checks on company names.

Enhanced regulatory powers

• Companies House now has greater powers to query and verify the information provided, request supporting evidence and tackle factually inaccurate data.
• Companies House now has the ability to share data with other government and law enforcement agencies.

From 1 May 2024, Companies House is increasing its fees. They claim the increase is to cover the costs of the new services and the enhanced powers granted by the legislation. The charges vary depending on whether the information is supplied to Companies House by paper, software, or online.

An example of some of the fee increases include:

• Incorporating a business – online filing – was £12, will be £50.
• Changing a name – online filing – was £8, will be £20.
• Filing the confirmation statement – online filing – was £13, will be £34.

A breakdown of the new Companies House fees from 1 May 2024 can be found here: https://changestoukcompanylaw.campaign.gov.uk/changes-to-companies-house-fees/

These changes impact a broad spectrum of the UK business community, including:

• New and existing companies.
• Company directors and people with significant control (PSCs).
• Accountants and solicitors assisting with company filings.

The following measures are also likely to be introduced over the coming months and years, although no deadlines have been set at this time:

Identity verification

• A new identity verification requirement is coming into effect for all company directors and PSCs. This requirement applies to new and existing appointments and requires verification before their details are officially registered.

Protection of personal information

• Provisions are being introduced to allow individuals to suppress certain personal information from historical documents to protect against misuse.

Filing accounts

• As part of the move to modernise the Companies House systems, there will be a transitional period to ensure companies move to software-only filings for company accounts to streamline processes and improve accuracy.
• Further reforms will be announced regarding company filings, especially for small businesses and micro-entities. Companies House aims to enhance transparency by mandating the inclusion of more detailed financial information. Small and micro-entity companies will likely have to file profit and loss accounts, and the option of filing abridged accounts is being removed.

Transparency of company ownership

• Companies will have to detail their individual and corporate shareholders' names where relevant.
• A complete list of all shareholders will need to be provided so Companies House can display this information.

More information from limited partnerships

• Limited partnerships will have to provide more details about their partners (names, date of birth, addresses).
• Further identity checks will also have to be carried out, including verification of partners' identification, providing a registered office within the UK and a SIC code, and submitting an annual confirmation statement.
• Limited partnerships will also have to file their information through an authorised agent registered with Companies House.
• New powers will be enforced, allowing Companies House to close or restore limited partnerships, apply sanctions, protect the partner's information, and undertake statutory compliance procedures.

These changes aim to tighten security and deter misuse of the UK's company registration system. However, they will likely create more work and expense for companies of all sizes.

If you are concerned about how these changes will affect your company, please get in touch. In some instances, the consequences of the above changes, coupled with recent announcements affecting dividend allowances and changes to NIC, may mean the viability of being incorporated may not be relevant to your current or future circumstances.

To discuss these changes further, please call us at 0113 320 0001 or email office@dwco.co.uk.