There are major changes coming to Companies House under the Economic Crime and Corporate Transparency Bill. The proposed reform would give the Registrar of Companies additional powers to maintain the accuracy of the UK’s record of companies turning it from a ‘passive recipient of information’ to a more active gatekeeper in the fight against financial crime. The changes being proposed will affect every company on the register.
Some of the changes proposed relate to:
- Small companies will no longer have the option to prepare and file abridged or fileted accounts. This means that they would be required to file accounts that include a profit and loss account and directors’ report.
- Micro entities will also be required to file a profit and loss account but will continue to have the option not to prepare or file a directors report.
- There will be an extension of Companies House powers to investigate, corroborate, reject, amend and/or remove information if it contains inconsistencies, is incomplete or appears suspicious or fraudulent.
- All companies will be required to file accounts digitally, with full tagging.
- New identity verification procedures for all directors and PSCs both for new companies and existing companies.
The Bill is currently progressing through the House of Lords before it is finally enacted and therefore the above proposals are subject to amendment during the Parliamentary process. We would however encourage all businesses to review these changes to see if they are affected and if you would like any advice then please contact your usual Drummond Laurie contact.