From May 1st 2024, businesses across the UK will find themselves faced with a notable change: higher fees for filing with Companies House. This impending shift, marking the first fee hike since 2016, has sparked a wave of concern among business owners about the financial impact. Companies House, the entity entrusted with managing the UK’s company register, has defended the fee increase as a necessary measure to cover operational costs.
In this blog, we’ll take a closer look at the implications of these changes and how businesses can navigate them effectively.
Understanding the fee changes
What’s striking is the substantial rise in filing fees, with some of the new amounts almost quadrupling in cost.
Increase in fees
– Digital Confirmation Statements From £13 to £34
– Incorporation via software (same day) From £30 to £78
– Changing a company’s name online From £8 to £20
– Registering a new company digitally From £12 to £50
– Voluntarily striking off a company online From £8 to £33
Paper filings will also cost more than digital submissions.
A full list of the new prices is here, with the previous prices here.
Why have the Companies House filing fees increased?
The rise in Companies House fees is part of the agency’s annual review.
In a statement, Companies House said that the prices are “set on a cost recovery basis. This means our fees must cover the cost of the services we deliver. We do not make a profit on our fees.”
Alexandra John, product director at IRIS Software Group, said: “The issue of inaccurate and dishonest information on Companies House records poses a serious threat to the UK economy, affecting the integrity of financial systems and hampering fair competition.
The filing fee, which has not increased since 2016, may seem large, but it will ultimately enable Companies House to deliver a better service and allow accountants to access accurate information on the register.”
Some commenters view the price increases as positive, to potentially prevent fraudsters from incorporating fake companies.
The MP for Barking Dame Margaret Hodge said on social media platform X: “£12 to set up a business essentially incentivised the creation of phony companies. The new £50 fee is a welcome first step to deter mass fraud, promote good business, and empower Companies House to combat economic crime.”
Impact on businesses
Although the fee hikes seem steep, they aim to improve Companies House services, giving businesses access to accurate records. This helps organisations check the credibility of their suppliers and trading partners.
The move towards digital services reduces paperwork and streamlines processes. However, businesses must keep their information up-to-date to comply with regulations.
How will the rise in Companies House filing fees affect limited companies?
Limited companies need to be aware of these changes, as they need to file an annual confirmation statement, the fee for which is shooting up from £13 to £34. This substantial increase in filing fees will undoubtedly have a notable impact on the financial planning of limited companies, particularly smaller businesses operating on tighter budgets.
Additionally, the shift towards digital filing methods may require some companies to invest in technology or software to streamline filing processes and minimise costs in the long run.
Changes in Companies House forms
It’s worth mentioning that it’s not just the fees that are changing. From March 4th 2024, Companies House forms will require more information to ensure accuracy.
Examples of these include:
– A new section in the form for changing a company’s registered office address. PO Boxes can’t be used.
– All confirmation statements must include a valid email address. They’ll also need a statement confirming the company’s activities are lawful.
– New rules for registered office addresses.
How an accountant can help
Given these changes, businesses need to stay on top of their filings and ensure compliance. This is where an accountant can help. We can:
– Navigate the complexities of Companies House filings.
– Ensure all necessary information is accurately provided.
– Advise on the most cost-effective and compliant filing methods.
– Keep businesses informed about regulatory changes and deadlines.
– Provide peace of mind that filings are handled correctly and on time.
By leveraging the expertise of a professional accountant, businesses can effectively manage the impact of the Companies House fee increases and stay focused on their core operations.
How CRM can help
We pride ourselves on offering more than just accounting services; we’re your dedicated partners in financial success. With our team of experienced professionals, personalised approach, and proactive mindset, we provide comprehensive support tailored to your unique needs. Whether you’re a small startup or an established corporation, we’re committed to helping you navigate the complexities of finance and achieve your business goals.
Next steps
For advice or assistance with Companies House fees or processes, you can count on CRM. Get in touch by completing our contact form or give us a call at 01865 379272. We’re here to simplify your financial journey.
