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With effect from 1 May 2024 Directors will face a Companies House fees surge following the effects of Section 93 of the Economic Crime and Corporate Transparency Act 2023 (“Section 93 ECCTA”).

With effect from 4 March 2024 certain sections of the Economic Crime and Corporate Transparency Act 2023 commenced in light of Section 2 of the The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 2 and Transitional Provision) Regulations 2024.

Section 93 ECCTA amends Section 1063 of the Companies Act 2006 which enables Companies House to levy fees across a whole range of companies registration matters.

Companies House Fees Surge

What Is The Purpose Of The Economic Crime And Corporate Transparency Act 2023

The Overview of the Economic Crime And Corporate Transparency Act 2023 says that in tackling economic crime and preventing UK corporate structure abuse there are three key objectives that led to this legislation:

Prevent organised criminals, fraudsters, kleptocrats and terrorists from using companies and other corporate entities to abuse the UK’s open economy. This Act reforms the powers of the Registrar of Companies and the legal framework for limited partnerships in order to safeguard businesses, consumers and the UK’s national security.

Strengthen the UK’s broader response to economic crime, in particular by giving law enforcement new powers to seize cryptoassets and enabling businesses in the financial sector to share information more effectively to prevent and detect economic crime.

Support enterprise by enabling Companies House to deliver a better service for over four million UK companies, and improving the reliability of its data to inform business transactions and lending decisions across the economy.

What Is The Effect Of Section 93 ECCTA On Companies House Fees?

Section 93 ECCTA allows the Secretary of State when setting the fees for Companies House to take into account the costs arising as a result of Part 1 of the Economic Crime and Corporate Transparency Act 2023.

In effect, the cost of economic crime appears to be being passed onto the four million companies registered at UK Companies House. 

Going forward if you wish to incorporate a company, whereas today online you would pay £10, and in 48 days you will be paying £50. That is a fivefold increase in cost.

Today to file your Confirmation Statement online it would cost you £13 but from 1 May 2024 you can you look forward to a bill of  £34. An increase of nearly three times the current fee.

To change a company’s name is currently possible for a fee of £8 online but in 7 weeks you will be paying £30. An increase of 275%.

To dissolve a company using the voluntary strike-off procedure in 7 weeks the fees will set you back per company by £33 whereas today you would pay £8.

If you overlook filing matters and are subject to compulsory strike off then if you are eligible for Administrative Restoration, instead of a fee currently of £100 you will in 48 days have to welcome a fee of £468.

Companies House Fee To Surge By More Than Inflation

The above referenced surge in Companies House fees is so far past the line of inflation that it will no longer be visible. 

However, that might overlook the position that these Companies House fees are deemed to be cost recoveries to make the UK Companies House and its business registration systems fighting fit to tackle fraud and economic crime through the prevention of the abuse of its systems. The same is viewed by many it seems as conceivably overdue. An alternative view might be held that rigorous enforcement of fraud laws by public prosecuting authorities to deter such abuse might have avoided this position.

Nevertheless, this position now perhaps demonstrates how fraud is not a victimless crime. These costs are passed on to law abiding companies that will now have to pay substantially increased fees. 

For more information on the Companies House fees that will be triggered from 1 May 2024, they can currently be viewed at the government’s publication Changes to Companies House fees.

Dormant Companies

In view of this forthcoming Companies House fees surge, a Director with dormant companies for which they have no current or future need may now before 1 May 2024 wish to consider using DS01 form to strike off a company to enable them to close these dormant companies thereby saving themselves from the effects of these administrative price increases.

GET IN TOUCH FOR HELP

For a free no obligation chat about any of the matters detailed above, please do get in touch for help. An expert will call you back or if you prefer exchange emails.

We can explore your situation and consider the best way to help you and your business needs. You can call us 020 3925 3613 or fill in the form below and will get back to you quickly. We Know Insolvency Inside Out.

Author: Elliot Green
Last Updated: May 20, 2024

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Disclaimer: Companies House Fees Surge

This page is not legal advice and is not to be relied upon as such. This article Companies House Fees Surge is provided for information purposes only. You should take independent advice on the facts of your case. No liability is accepted for reliance upon this post.

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