Following the implementation of the Economic Crime and Corporate Transparency Act 2023, Companies House have recently introduced a new financial penalty regime to registered companies as part of an effort to improve corporate transparency and tackle economic crime.
This regime will mean tougher consequences by implementing financial penalties for companies that do not meet their filing obligations, including filing their confirmation statements on time.
More serious offences could result in civil action, director disqualification or potentially even criminal prosecution. Companies House will work to investigate and prosecute offences in partnership with the Insolvency Service and other enforcement partners. If convicted, a director could end up with a criminal record.
What are the filing penalties if the rules are broken?
For minor breaches, such as filing documents late, the result may simply be a fine ranging from £250 to £2,000. The amount of the fine increases depending on the seriousness of the offence and the number of times it has been committed.
Companies House will also share intelligence with other bodies when necessary. For companies, this could mean that non-compliance could initiate a more intense investigation, potentially leading to further severe consequences than previously.
How to stay compliant
To avoid penalties, company directors should make sure they are up to date with their filings and other legal obligations. Here are a few steps to consider:
- Ensure all filings are made on time: this includes confirmation statements, accounts, and any other required documents.
- Respond to any warnings from Companies House: ignoring these can escalate the situation quickly.
- Ensure you keep up to date with any changes: stay informed about legal updates that might affect your responsibilities as a company director.
- Seek advice if required: if you’re unsure about what’s required, don’t hesitate to seek professional advice.
Should you have any queries regarding the new financial penalties regime, please contact Katie Holden, Senior Manager, Head of Company Secretarial, at KHolden@haysmacintyre.com
