And how can Shenward Accountants keep you on track?
The Economic Crime and Corporate Transparency Act has carried out some of the most significant changes to UK Company Law that Companies House has seen in years.
As business owners, you’re constantly in a race against the clock and keeping track of updates to UK regulation is just another task you don’t need. That’s where we come in. When something big happens like changes to UK Company Law, we’re on it; making sure you have access to resources covering the main changes in an easy-to-understand way and what it means for your business.
With this in mind, we’ve created a bite-sized guide to UK Company Law changes.
What’s covered?
· Improving data on registers
· Confirmation statement changes
· Changes to fees
· Identity verification
· Changes to accounts
· Protecting your information
· Limited partnerships (LPs)
· Transparency of company ownership
· Investigation, enforcement and data sharing
Improving data on the Companies House Register
What is it? Registered office addresses, statement of lawful purpose, greater registrar power, enforcements and sanction changes.
Effective from: 4 March 2024
Additional info:
- There’ll be new rules for registered office addresses, meaning companies must always have an ‘appropriate address’ as their registered office. PO Boxes will no longer be allowed.
- When registering a company (and on every annual confirmation statement) at Companies House, you must confirm you’re forming the company for lawful reasons.
- Registrars will hold more power and can carry out stronger checks and challenge incorrect or inconsistent information.
- If businesses aren’t complying with regulations, Companies House can fine or even prosecute.
Change to Confirmation Statements
What is it? Annually confirm your details held by Companies House are correct
Effective from: 4 March 2024
Additional info:
- New companies will have to provide a registered email address. Existing companies will need to provide one on their next confirmation statement.
- You’ll also have to confirm on your annual statement that the intended future activities of your company will be lawful.
Changes to fees
What is it? Companies House fees are changing
Effective from: 1 May 2024
Additional info:
There’ll be new annual and registration fees for company incorporation and registration, limited liability partnerships, overseas companies, limited partnerships, Scottish qualifying partnerships, UK Economic Interest Groupings and UK Societas, and overseas entities.
Changes to Identity verification
What is it? Anyone setting up, running, owning or controlling a company in the UK will need to verify their identity with Companies House.
Effective from: Date to be confirmed
Additional info:
- For new companies, all directors and people with significant control (PSCs) will have to complete identity verification. Also, members of a limited liability partnership will need to verify.
- For existing companies, all directors (or equivalent) and PSCs will have a period to verify their identity.
- Anyone acting on behalf of a company will need to verify before they can file information with Companies House.
- The process hasn’t entirely been determined, but Companies House have said they will organise a service to verify your identity using ID documents, such as a passport. Companies House Support will also release support services to help you complete the process.
Changes to Accounts
What is it? New measures will improve transparency by making more financial information available to the public.
Effective from: Date to be confirmed and more information is coming
Additional info:
- Companies House is modernising its filing options, moving towards filing accounts exclusively through software over the next two to three years. All companies, including those using third-party agents or accountants, must adapt to this digital format.
- Filing options for small and micro-entity companies will also be streamlined. You’ll need to file profit and loss accounts, while the option for filing ‘abridged’ accounts will be removed. Small companies not classed as micro will also need to file a directors’ report.
- Companies seeking an audit exemption must provide a director’s statement on the balance sheet. You’ll need to specify the exemption being claimed and confirm the company’s qualification for it.
What is it? Measures to prevent abuse of personal information held on the Companies House register are being introduced.
Effective from: Phased approach over the next two years.
Additional info:
- Businesses registered at Companies House will be able to suppress residential addresses, date of birth documents, signatures and business occupations.
- People classified as ‘at risk’ will be able to apply to have the following removed from public view – name or previous names, sensitive addresses, other details depending on the severity of the case.
Changes to limited partnerships
What is it? LP information will be made more accessible and transparent
Effective from: Date to be confirmed
Additional info:
- When the measures come into force, LPs must provide additional information, such as partner details and a SIC code and file an annual confirmation statement.
- Information must be filed through an authorised agent (like an accountant) registered with Companies House.
- There’ll be new powers to apply sanctions, close and restore partnerships and protect partner details.
Transparency of company ownership
What is it? You’ll have to supply more information based on owning your company.
Effective from: Date to be confirmed
Additional info:
- You’ll be required to record the full names of shareholders who are individuals (or full names of corporate members and firms) in your registers. And provide a one-off complete shareholder list so Companies House can display this information in a user-friendly way.
- Companies House will also have the right to collect and display information relating to persons with significant control (PSC) exemptions. They’ll do the same for the conditions which allow a relevant legal entity to be recorded as a PSC.
Investigation, enforcement and data sharing
What is it? Companies House will now have the power to share data with law enforcement agencies and government departments.
Effective from: Date to be confirmed
How can Accounting firms like Shenward can help you with company law changes?
Many accounting firms just like us are classed as authorised agents. This means we are registered to manage all aspects of Companies House record management for UK businesses. And, because we keep up to date with law changes, everything we do for you will ensure you remain fully compliant at all times.
Contact our professional team today if you’re looking for business support relating to Company Law changes or need help with Companies House.
You can also learn more about how an accountant can help your business here.
