We recognise the significance of Companies House announcing an increase in its fees from 1st May 2024, and the impact on businesses, especially small and medium-sized enterprises (SMEs).
The issue of inaccurate and dishonest information on Companies House records poses a serious threat to the UK economy. It can be exploited for illicit activities, including money laundering – affecting the integrity of financial systems and hampering fair competition. We fully support the new Economic Crime and Corporate Transparency Act (ECCTA) and its potential to combat this.
So, what does this mean for business owners?
Changes to Companies House fees
Effective from 1st May 2024, notable fee increases include:
- Confirmation Statements – digital £34 (previously £13)
- Change of name – digital £20 (previously £8)
- Incorporation – digital £50 (previously £12)
- Voluntary strike off – digital £33 (previously £8)
Paper equivalents have also risen and remain more expensive than electronic filing.
Changes to Companies House forms
Starting from 4th March 2024, Companies House forms will require additional information. This is crucial for ensuring compliance and accuracy in company records. Key form changes include:
- The ‘Change of registered office address’ (form AD01 & LL AD01) will include a new section 3 to confirm the address is an appropriate registered office address. The test here is to establish if the post, once delivered, comes to the attention of someone acting on behalf of the company. A PO Box will not be permissible.
- All ‘Confirmation statements’ (form CS01 & LL CS01) with a made-up date of 5th March 2024 onwards, will also be amended and on all first year or next applicable CS01 or LL CS01 they must include a valid registered e-mail address. This e-mail address will be used by Companies House for all future communication. This can be an agents e-mail address. The second change in the CS01 or LL CS01 is to include a ‘Lawful purpose statement’. This statement verifies if the business and its future activities will be lawful.
Impact on businesses
The filing fee increases (which have not increased since 2016) may seem large, but this will ultimately enable Companies House to deliver a better service and allow SMEs to access accurate information on the register – improving the quality of information recorded.
Businesses will be more equipped to check the credibility of suppliers and other companies they trade with. The further digitisation of this service will only improve its integrity, eradicating the need for sending paper correspondence and streamlining administrative tasks.
It means small businesses must maintain accurate and up-to-date information about business activities and strengthen their anti-money laundering practices.
The path forward
If you haven’t done so already, you need to review and update your information on Companies House and ensure all details such as ownership, business activities and registered addresses are accurate. You also need to take time to understand the additional changes in reporting starting next month. Your accountant is always a great place to start for advice and guidance. As a business grows, input from a professional accountant pays dividends and they have the software tools to make submissions to Companies House, that are fully compliant, meaning you don’t have to.
In conclusion, while the fee adjustments may pose initial challenges, they are a crucial step towards bolstering the transparency and reliability of business information, aligning with the broader objectives of the ECCTA. Embracing these changes and ensuring compliance with the evolving regulatory landscape will be pivotal for businesses to navigate the shifting operational environment effectively.
