Are you a small business owner who files accounts with Companies House in the UK? If so, you should know that the Economic Crime and Corporate Transparency Bill is about to bring some significant changes to the way you do things.
The legislation aims to increase transparency and combat economic crime with a variety of new measures. But what do these changes mean for small businesses like yours?
One of the most important changes is the introduction of two filing options: micro-entities and small businesses. You will need to file digitally using approved software, and the option to file “abridged accounts” without a directors’ report and profit and loss statement is being removed. The government claims that this will simplify the process, cut costs, and improve the quality of information on the register.
All businesses, not just limited companies, will now need to provide profit and loss accounts to Companies House. Although it’s unclear how detailed this information needs to be, the government hopes this will increase transparency.
But that’s not all. Identity verification will be required for anyone who sets up, runs, or controls a company. Companies House will also have more power to challenge suspicious information and cross-check with other public and private sector bodies.
The government believes that these measures will provide greater assurance that the information on the register is genuine, which will prevent fraudulent companies from being registered.
The implementation date for the Companies House reforms hasn’t been set yet, but it’s predicted to be in spring 2023. Keep an eye on the Knowledge Centre for updates, and don’t forget to sign up for our newsletter to stay informed about news affecting small businesses.
Louise Smyth, Companies House Chief Executive, welcomes the measures outlined in this Bill, which she believes represent the most significant changes to the UK’s company register in over 170 years. She thinks that these changes will enable Companies House to play a much stronger role in making the UK a great place to do business, maintain the integrity of the register, inspire greater trust in data, crack down on economic crime, and further drive confidence in the UK economy.
In conclusion, the changes to Companies House brought about by the Economic Crime and Corporate Transparency Bill will have a significant impact on small businesses in the UK. By increasing transparency and combating economic crime, these measures aim to create a better business environment and improve the quality of information on the register. Keep an eye on the Knowledge Centre for updates and be sure to sign up for our newsletter to stay informed about the latest news affecting small businesses.
