Introduction

The recent enactment of the Economic Crime and Corporate Transparency Act has introduced significant reforms at Companies House, aiming to enhance transparency, improve data quality, and increase accountability for UK companies. Below are frequently asked questions about these changes and how they might affect your company.

 

Overview of Changes

Q: What are the key changes introduced by the new act at Companies House?

A: Key changes include stricter data quality checks, mandatory identity verification for company management, updates to confirmation statement requirements, fee adjustments, a move towards digital-only account filings, and enhanced privacy options for personal information, among others.

 

Implementation Dates

Q: When do the new data quality and confirmation statement updates take effect?

A: These changes are set to begin on 4 March 2024, including stricter checks on company information and the requirement for companies to provide a registered email and confirm lawful business activities.

 

New Requirement for Profit and Loss Statements

Q: Is there a new requirement for small and micro entities to present a profit and loss statement?

A: Yes, as part of the accounting changes, small and micro entities might now be required to present a profit and loss statement alongside their annual accounts filing. This is in line with efforts to enhance financial transparency and provide a clearer picture of a company’s financial health to stakeholders. It’s important to review the specific guidelines or consult with an accountant to understand how this requirement applies to your company.

 

Fee Adjustments

Q: Are there any changes to Companies House fees?

A: Yes, there will be an increase in fees from 1 May 2024 to support the administration of both future and existing expenditures.

 

Identity Verification

Q: What does mandatory identity verification entail?

A: This requirement means that individuals involved in company management must undergo identity verification with Companies House to ensure transparency and accountability.

 

Accounting Filing Changes

Q: How is the accounting filing process changing?

A: The process is transitioning to software-only filings, with revisions to the filing options available for small companies, to streamline and secure financial reporting.

 

Personal Information Protection

Q: Can I hide my personal information from historical records or public access?

A: Yes, new provisions allow individuals to suppress their personal data from historical records or public access if there is a risk of harm.

 

Limited Partnerships

Q: What new requirements apply to limited partnerships?

A: Limited partnerships must now file their information through authorised agents and adhere to expanded disclosure requirements, enhancing oversight and transparency.

 

Ownership Transparency

Q: How is shareholder information transparency being improved?

A: There are new mandates for more detailed shareholder information and limitations on the use of corporate directors to prevent misuse and enhance transparency.

 

Enhanced Powers of Companies House

Q: What enhanced powers does Companies House have under the new act?

A: Companies House has been granted broader authority for investigation, enforcement, and data sharing with law enforcement and other governmental bodies, strengthening its role in preventing economic crime.

 

Conclusion

By familiarising yourself with these changes, you can ensure that your company remains compliant and benefits from the enhanced regulatory framework designed to promote transparency and deter economic crime in the UK. Remember, for specific guidance, consulting with a legal or financial advisor is recommended.

For any further queries, please don’t hesitate to reach out via our Client Services email. We’re here to help!

 

About Neame & Co 

At Neame & Co we specialise in stress free company filing: the easy way to file your year end Company Accounts and Corporate Tax Return to Companies House and HMRC. Maximise tax efficiency, real human support throughout and 100% online and paperless service. Visit Neame & Co for more details on how we can help!