Companies House has new and enhanced powers under The Economic Crime and Corporate Transparency Act 2023 (ECCT Act) designed to help tackle economic crime and improve the quality and reliability of its data. Some measures came into effect earlier this month and landlords with limited companies should be aware of the new rules and requirements that may affect them in the coming months. 

The changes that came in on 4th March 2024 include:

• Stronger checks on company names.
• Greater powers to query information and request supporting evidence.
• New rules for registered office addresses (all companies must have an appropriate address at all times – they will not be able to use a PO Box as their registered office address).
• A requirement for all companies to supply a registered email address.
• A requirement for subscribers to confirm they’re forming a company for a lawful purpose when they incorporate, and for a company to confirm its intended future activities will be lawful on its confirmation statement.
• Greater powers to tackle and remove factually inaccurate information.
• The ability to share data with other government departments and law enforcement agencies.

Any landlord wishing to incorporate their property portfolio must be aware of these changes as not only will further enhanced checks be required of all directors and shareholders, but costs associated with incorporation are set to increase from 1st May 2024.

Some of those charges include:

• Web incorporation currently £12 increasing to £50
• Same day incorporation increasing from £30 to £78
• Confirmation statement increasing from £13 to £34

It is also expected that by 2026 all records will need to be produced digitally, potentially leading to further costs for landlords. 

Companies can no longer be set up with names including computer code or potentially offensive names. If a company is required to change their name, they must do so or be liable to a fine of up to £1,000. 

At this stage it is unclear whether company SIC codes will be replaced. However, those trading companies that include investment companies may have to be more transparent about the assets within the company.

With these changes set to impact both new and existing incorporations, landlords should be prepared to make the necessary changes. Speak with your accountant for further information and to ensure that you’re ready for when ‘Making Tax Digital’ becomes compulsory.

Further Information:

https://www.gov.uk/government/news/companies-house-begins-phased-roll-out-of-new-powers-to-tackle-fraud

https://changestoukcompanylaw.campaign.gov.uk/changes-to-companies-house-fees/

Acknowledgements:

We’d like to extend our thanks to Craig Hart FCA, director at Hart Family Accountancy Limited, for his assistance and input into this blog.