There have been significant changes to Companies House reporting requirements since March 2024. The changes were introduced the Economic Crime and Corporate Transparency Act and are discussed below. They are designed to improve the accuracy and transparency of information held by Companies House.
Overview
The changes give Companies House greater powers to check information and tackle fraudulent or inaccurate information on the register.
Companies House filing changes
Financial reporting
If you're are a small company you will be required to file a profit and loss account and directors' report. Whereas if you're a micro-entity you'll also need to file a profit and loss account but will continue to have the option not to prepare a directors' report. Both filings need to comply with Section 396 Companies Act 2006.
Companies will no longer be able to file abridged accounts. In addition, companies claiming an audit exemption will need to provide an eligibility statement.
Companies House is also moving towards digital filing. Company accounts will need to be filed digitally in iXBRL format using appropriate software.
Further reforms give the Companies House Registrar additional powers. These include identity checks for directors and restrictions on corporate directorships.
Further reforms give new powers to the Companies House Registrar including identity checks for directors and restrictions on corporate directorships.
Shareholder information
A company will be required to record the full names of shareholders in their registers.
Private companies and traded companies will also have additional shareholder reporting requirements. Where shareholders hold at least 5% of the issued shares of any class, companies must provide a one-off shareholder list. Changes will then be reported annually through the confirmation statement.
Companies claiming an exemption from providing Persons with Significant Control (PSC) information will also need to provide further details to support that exemption.
Identity verification requirements
Identity verification is another important part of the Companies House reforms.
Directors, Persons with Significant Control (PSCs), members of Limited Liability Partnerships and General Partners of Limited Partnerships will need to verify their identity.
Identity verification can be completed directly with Companies House or through an authorised third-party agent.
The new rules are designed to make it more difficult for people to use false identities when setting up or managing companies. Failure to comply with the identity verification requirements can also result in sanctions.
Registrars new powers
The Registrar has been given new powers to iimprove the accuracy and integrity of information held on the Companies House register.
New querying and checking powers:
Companies House can query, reject and remove information supplied to the register. These powers can apply to both new filings and information already held by Companies House. They can also apply to company names and registered office addresses in certain circumstances.
Companies House can use these powers where information appears suspicious, fraudulent or could affect the integrity of the register.
Additional checks can also be carried out on new filings. These may include identity verification and checks for outstanding filing requirements.
If Companies House rejects a document, it will normally explain why. The company may then be given an opportunity to provide further information.
Companies House can decide whether to accept or reject the filing after considering the additional evidence. Failure to comply with the rules may result in sanctions.
Increased powers to share data
Companies House has greater powers to share relevant information with public, regulatory and supervisory bodies, including law enforcement agencies.
It can also cross-reference information with data held by other public bodies and, in some circumstances, private organisations. This should help Companies House identify inaccurate or potentially fraudulent information.
Enhance privacy mechanisms
The reforms also provide greater protection for personal information in certain circumstances.
Individuals who can show that publicly available information puts them at risk of harm may be able to apply for that information to be protected. In some cases, an application can be made before the information becomes publicly available.
Protected information may still be available to organisations such as law enforcement agencies. Information that can potentially be protected includes dates of birth, residential addresses and other sensitive addresses.
Summary
Companies House now has significantly greater powers to check the information submitted by UK companies. There are also further changes to accounts filing and company reporting requirements to consider.
Company directors should therefore make sure that the information held at Companies House is accurate and up to date. They should also be aware of the new identity verification and filing requirements that affect their company.
Keeping on top of these changes can help avoid rejected filings, delays and potential penalties.
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