Is your business registered with Companies House? You need to read this!
The Economic Crime and Corporate Transparency Act (ECCTA) has introduced many new requirements this year … and there are more to come.
Mandatory legislative changes are being introduced to:
- increase business transparency and accountability,
- reduce economic crime, and
- strength Companies House.
They impact businesses registered with Companies House, with a rolling programme of reforms starting on 1 March 2024 and continuing into 2026. If you are a company director or a person with significant control of a company (PSC), make sure you know your additional responsibilities.
What changes are in place?
Five key requirements were introduced in March – May 2024:
1. Registered contact details
PO boxes can no longer be filed as your business’s registered address. A valid physical address must be provided. This means that:
- you or someone acting on behalf of your company will be made aware of any post addressed and delivered to your company.
- when your company receives post at this address, it’s possible for the sender to get confirmation of delivery.
In addition, every business must provide an official email address to Companies House. This will be used by Companies House and will not be publicly available. Failure to provide a registered email address will be considered a violation by Companies House.
2. Increased Companies House fees
Higher fees from Companies House will apply from 1 May 2024. This affects existing limited companies and businesses at the point of incorporation.
3. New lawful purpose statement
If you are incorporating a business, you must confirm your company is being established for legal purposes. You must also ensure your company’s activities are legal and included in your confirmation statement. Any documents lacking a statement of legal purpose will not be accepted. This affects established companies submitting a confirmation statement on or after 5 March 2024.
4. Company ownership
To promote transparency, Companies House requires additional shareholder information and will restrict the appointment of corporate directors.
Looking ahead:
- Identity verification measures
By the end of 2024: UK business individuals must verify their identity in advance, enhancing data accuracy for all directors.
From spring 2025 onwards: the Identity Verification (IDV) implementation goes ahead, starting with directors and PSCs.
Current directors, partners and PSCs will be given a 12-month transition period. All necessary filings will be mandatory after a further six months. Ultimately, anyone submitting filings for a company will be required to verify their identity.
- Financial statements
Small companies and micro-entities will need to submit a profit and loss account each year. This aims to improve the usefulness of the information on the record, helping creditors and customers make more informed decisions.
- Director reports
Small companies will also need to submit a director’s report. These must be delivered by ID-verified individuals (see above) and authorised corporate service providers (such as accountants) only.
- No more paperwork
The legislation will introduce compulsory digital filing of accounts.
‘These are significant changes,’ says Emily Bridges of re:accounts Chartered Accountants in Stevenage. ‘However most requirements should be quick and straightforward to introduce. Now is the perfect time to check that you and your business are compliant with the changes.’
Do these changes affect your business?
Contact the friendly experts at re:accounts. We’re happy to arrange a coffee and answer any questions. We’re very good at multi-tasking, especially where coffee’s involved!
