Changes to Companies House reporting requirements
There have been significant changes to Companies House reporting requirements from March 2024. These changes result from new powers introduced under the Economic Crime and Corporate Transparency Act and are discussed below.
Overview
These changes to Companies House reporting requirements are designed to stop fraudulent information being accepted and published on the Companies House register. Typically they will involve the following:
Companies House filing changes
Financial reporting
If you're are a small company or micro-entity you'll be required to prepare annual accounts in accordance with the requirements of Section 396 Companies Act 2006.
You'll be required to deliver a profit and loss account and a directors’ report. Although if you're a micro-entity you retain the option to not prepare a directors’ report.
There will no longer be an option to file abridged accounts plus an eligibility statement for companies claiming an audit exemption will be required.
Documents will need to be delivered together, in cases where more than one document is filed, including for the filing of accounts What's more, company accounts will need to be filed digitally in iXBRL form and tagged.
Further reforms give new powers to the Companies House Registrar including identity checks for directors and restrictions on corporate directorships.
Shareholder information
Your company will be required to record the full names of shareholders in their registers.
Additionally, those private companies and traded companies (where shareholders hold at least 5% of issued shares of any class) must provide a one-off shareholder list. Changes are then updated annually when filing your confirmation statements.
If your company is claiming exemption from providing Persons with Significant Control (PSC) details you'll need to provide further information to prove exemption.
Identity verification requirements
New and existing directors, persons with significant control, members of Limited Liability Partnerships and General Partners of Limited Partnerships will need their identity verified under these new rules.
A verified account can be set up directly with Companies House or via a third-party agent.
A director cannot be registered without a verified account. What's more, those unverified directors and their companies will have committed an offence and be subject to sanction.
Registrars new powers
The Registrar will be given new powers to increase the integrity of the information held by the Register which includes:
New querying and checking powers:
The registrar will have powers to query, reject and remove information supplied to the register. This includes new filings, existing information and in some cases company names and registered offices.
However these powers will be used on a discretionary basis. Furthermore, they will only be adopted if information is suspicious, fraudulent or likely to impact the integrity of the Register.
Additional checks will be introduced for new filings which will include, ID verification checks and checking prior compliance for any outstanding documents. Any rejected documents will be returned with a reason for rejection Your company will then have the opportunity to provide further information within 14 days.
Companies House will then exercise their discretion to accept or reject the filing based on the further evidence provided. Potential non-compliance can be punished by imposing a sanction on the entity concerned.
Increased powers to share data
The Registrar will be able to pass relevant information (that is all information held by Companies House) to certain public, regulatory and supervisory bodies including law enforcement. The Registrar will be able to cross-reference data held by public and some private bodies to check accuracy.
Enhance privacy mechanisms
Information will be suppressed and not visible to the public if the applicant can show they are at risk of harm. Applications can be made before the information becomes public. This information will still be available to certain groups such as law enforcement. Information that can be suppressed includes Dates of birth and residential and sensitive addresses.
Summary
In view of the more stringent financial reporting requirements for Companies House and the registrars enhanced powers you should review your registered details to ensure that they are compliant.
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