Important Changes to UK Company Law
The Economic Crime and Corporate Transparency Act became law in October 2023. Since then, HMRC have been getting ready to introduce the measures brought in by the act.
The first set of changes are due to take effect on 4th March 2024. (subject to secondary legislation and parliamentary timetables).
These changes include:
- a Companies House cost increase for filing a CS01 (from 1st May 2024)
- a requirement for all companies to confirm they’re forming the company for a lawful purpose when they incorporate, and to confirm its intended future activities will be lawful on their confirmation statement
- a requirement for all companies to supply a registered email address
- new rules for registered office addresses
- greater powers to query information and request supporting evidence
- stronger checks on company names
- the ability to annotate the register when information appears confusing or misleading
- taking steps to clean up the register, using data matching to identify and remove inaccurate information
- sharing data with other government departments and law enforcement agencies
What the early changes mean for you
We know companies want to make sure they’re ready for the changes so that they can take the correct action at the right time. Anyone thinking about incorporating a company should also be keeping an eye on these developments.
We’ve summarised the four early changes:
- an increase in the filing charge made by Companies House
- new lawful purpose statements
- requirement for all companies to supply a registered email address
- new rules for registered office addresses
CS01 filing charge
From 1st May 2024, Companies House are increasing the cost of filing your annual confirmation statement (CS01) from £13 to £34. If we do this on your behalf, the Moorgate admin fee is additional to this.
Statement of lawful purpose
When you incorporate a company from 4th March 2024, the stakeholders will need to confirm they’re forming the company for a lawful purpose. You’ll also need to confirm the company’s intended future activities are lawful on the confirmation statement.
The intention of these new statements is to make it clear that all companies on the register, new and existing, have a duty to operate in a lawful way. HMRC may take action against a company if they receive information that confirms it’s not operating lawfully.
Existing companies will need to make a lawful purpose statement when they file their next confirmation statement with a statement date from 5th March 2024.
Registered email address
From 4th March 2024, there’ll be a new requirement for all companies to give a registered email address to Companies House. This email address will not be published on the public register.
New companies will need to give a registered email address when they incorporate. Existing companies will need to give a registered email address when they file their next confirmation statement with a statement date from 5th March 2024.
Companies will have a duty to maintain an appropriate registered email address, in the same way as their registered office address. Any company that does not do this will be committing an offence.
Registered office address
From 4th March 2024, there’ll be new rules for registered office addresses which mean companies must have an ‘appropriate address’ as their registered office. An appropriate address is one where:
- any documents sent to the registered office should be expected to come to the attention of a person acting on behalf of the company
- any documents sent to that address can be recorded by an acknowledgement of delivery
These changes mean you will not be able to use a PO Box as your registered office address from 4th March 2024. You can still use a third-party agent’s address, if they meet the conditions for an appropriate address – Moorgate are happy to offer this as part of our service.
If you are currently using a PO Box as your registered office address, you’ll need to change it by 4th March 2024. Existing Moorgate clients should email the office using oxted@moorgates.co.uk so we can make the necessary changes for you.
Companies that do not have an appropriate registered office address could be struck off the register. If HMRC identify an inappropriate registered office address, they’ll change it to a default address held at Companies House. The company must then provide an appropriate address, with evidence of a link to that address, within 28 days. If this evidence is not receives, the process to strike the company off the register will be started by HMRC.
Help from Moorgate
We’re here to help you get this new compliance absolutely right so please do contact us if you need to. All future annual confirmation statements will be updated to include this for all existing Moorgate clients. However, please do let us know if you have any questions. If you are a new client who would like help filing your CS01, you can contact us by phone or email to request a quote for this service.
Moorgate Chartered Accountants
01883 730044
oxted@moorgates.co.uk
www.moorgates.co.uk