Yesterday, 1 May, 2024, Companies House implemented fee hikes affecting both established and newly formed UK businesses. These changes come in the wake of increased expenses incurred due to the implementation of expanded powers, as outlined in the recently passed Economic Crime and Corporate Transparency Act.
Fee Increase
The rise in prices is likely to present obstacles for many entrepreneurs currently operating or intending to establish businesses in the UK. While incorporation costs still stand competitively against those in other European Union nations, this upward shift could impact perceptions of the UK’s business-friendliness.
Companies House has stated that the fee revisions are essential to offset the expenses linked to service provision and the enforcement of new powers detailed in the Economic Crime and Corporate Transparency regulations.
The changes to fees span across several aspects of incorporation and registration for digital, software, and paper transactions. These include re-registration, name changes, and voluntary strike-offs amongst other things – the full breakdown of all the new fees can be found here.
What are the likely effects?
Businesses are confronted with financial planning challenges following substantial fee increases across company registration and filing services, necessitating a reassessment of financial strategies. This includes budgeting for higher costs related to incorporation and regulatory requirements under the Economic Crime and Corporate Transparency Act 2023.
Additionally, the disparity in costs between paper and digital filings could lead to operational adjustments, prompting a shift towards cost-effective digital channels. However, this transition may also exacerbate compliance burdens, particularly for smaller enterprises, potentially requiring additional time and resources to meet regulatory deadlines.
As Companies House implements further compliance obligations under the new law, these challenges are expected to intensify.
Our proactive advisory services and tailored financial planning expertise equips us to help you adapt with evolving regulatory changes and maintain financial resilience.
For further guidance navigating changes to Companies House fees, please don’t hesitate to get in touch.