Date posted: 19th Mar 2024
A leading independent regional accountancy firm is warning businesses of extra Companies House checks and charges after legislative changes came into effect.
Clive Owen LLP, which has offices in Darlington, Middlesbrough, Durham, and York, is highlighting the recent changes brought about by the Economic Crime and Corporate Transparency Act 2023.
The Act, which came into effect on 26th October 2023, has brought about significant changes to the way in which Companies House operates, including enhanced powers and increased fees for the submission of various documents.
Martin Hobson, partner at Clive Owen LLP, highlights the importance of these changes for UK businesses. “The new regulations mark a pivotal shift in ensuring greater transparency and accountability within the corporate landscape of the UK. It’s crucial for businesses to understand these changes and adapt accordingly to remain compliant.”
As of 4 March 2024, several changes have been implemented, including:
- Registered Office Address: Companies must use an ‘appropriate address’, effectively prohibiting the use of PO Box addresses to ensure greater transparency.
- Lawful Purpose Declaration: Companies are now required to declare their intended future activities as lawful upon incorporation and annually in the Confirmation Statement.
- Registered Email Address: An email address must be provided upon incorporation and annually, to make communication with Companies House easier. This address will not be public.
- Increased Powers to Challenge: Companies House has been granted enhanced powers to check, challenge, and enforce changes in the information provided, with the ability to issue penalties or take further action as necessary.
Starting 1 May 2024, Companies House will implement a significant increase in fees for various submissions. For example, the fee for filing an annual Confirmation Statement will rise from £13 to £34 for digital submissions, and the cost of forming a new company online will increase from £27 to £65. These adjustments are attributed to the additional workload anticipated due to the new powers granted to Companies House.
Martin Hobson added: “In addition to being aware of the recent changes, businesses need to prepare for the future and things that have been announced but are yet to be implemented. These include the requirement for small and micro entities to disclose more information in their public accounts and the mandatory verification of identity for directors and people with significant control. These changes will require further legislation and are part of the ongoing efforts to enhance corporate transparency and combat economic crime.”
If you have any questions about these changes, get in touch with our expert team here.
