17th October 2024 Posted by - Alexander Accountancy
Companies House introduces new financial penalties regime
Companies House have rolled out a new penalties regime as part of a broader effort to boost corporate transparency and combat economic crime, following the implementation of the Economic Crime and Corporate Transparency Act 2023.
This could mean tougher consequences in the shape of financial penalties for companies that don’t meet their obligations, including filing their confirmation statements on time.
More serious offences, such as ongoing non-compliance or fraudulent activity, could lead to civil action, director disqualification, or even criminal prosecution. Companies House have said they will work closely with the Insolvency Service and other enforcement partners to investigate and prosecute offences when necessary.
According to Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House: “Where our guidance and support are not enough to encourage users to comply with the law or discourage misuse of our registers, we won’t hesitate to use these new powers available to us.”
What happens if you break the rules?
For minor breaches, such as filing documents late, the result may simply be a fine. The amount of the fine increases depending on the seriousness of the offence and how many times it has already happened. Amounts could range from £250 to £2,000.
Companies House is also adopting a holistic approach to enforcement, which means that they will share intelligence with other bodies. For companies, this could mean that non-compliance could trigger a much deeper investigation, potentially leading to more severe consequences than in the past.
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.
- Keep up to date with any changes: Stay informed about legal updates that might affect your responsibilities as a company director.
- Seek help if needed: If you’re unsure about what’s required, don’t hesitate to seek professional advice.
If you have any questions or concerns about the new regime, feel free to reach out. We’re here to help ensure your business remains compliant with these important regulations.
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