We at Everest and Co Accountants understand the importance of being well-informed about regulatory and financial changes that impact your business. Hence, it's imperative to share that from the 1st of May 2024, Companies House is implementing a considerable fee increase for company registrations and other services, marking the first significant revision since 2016. As we navigate these changes, Meena Sahota is here to guide you through what this means for new and existing businesses.
Companies House Fee Increases
When it comes to establishing a new venture, costs matter. Up until now, the affordable sum of £12 has made starting a business or a limited liability partnership (LLP) rather accessible. However, this is about to change with the fee soaring to £50 for online incorporations and a considerable £78 for same-day service requests.
The justification provided by Companies House for these unprecedented hikes is that these fees are not for profit, but solely to offset the cost of the services provided. This philosophy extends to the cost of overseas company incorporations within the UK, which is moving up from £20 to £71.
Impact on Accounting and Business Integrity
Alex John, product director at IRIS Software, has highlighted an essential facet of the fee increment. The intention is not just to manage operational costs but to enhance the integrity and reliability of business records. By securing better service, accountants and business professionals can rely on precise data from the registry, which is crucial for the UK's economic stability and the promotion of fair competition.
Similarly, the new fee structure is expected to act as a deterrent to fraudulent activities. This is echoed by Dame Margaret Hodge, MP for Barking, who indicated that the minimal cost of company setup had previously eased the creation of fictitious companies. Hence, the new £50 fee represents a significant move to mitigate mass fraud and bolster the UK's efforts to combat economic crime.
Further Fee Adjustments and Anti-Fraud Measures
Despite the preventive intention behind these changes, concerns remain that the new fee may still not be sufficiently prohibitive to stop scammers, as demonstrated in the recent impersonation fraud incident involving chef Heston Blumenthal.
In tandem with the fee updates, the cost for overseas property owners registering with the mandatory Register of Overseas Entities (ROE) will more than double, jumping to £234 from the current £100, along with matching fees for any subsequent updates.
Stricter Verification Processes
Moreover, Companies House is setting out to implement more stringent identity verification procedures. This move towards reinforced online checks aligns with the overarching goal of preventing fraudulent incorporations and safeguarding legitimate business operations.
At Everest and Co Accountants, we're committed to keeping you informed and assisting in navigating these changes seamlessly. For further assistance or inquiries, please feel free to reach out to us at 01902219680.
By
Meena Sahota