What the Companies House Fee Increases Mean for Small Businesses

Jun 24, 2024 | Accounting

As of 1st May 2024, Companies House has implemented fee increases impacting both new and existing companies in the UK. 

While these changes aim to cover service delivery expenses and are not profit-driven, they present new challenges for small businesses.

Here’s what has changed and how it affects you.

 

Key Takeaways

 

  • Effective Date: May 1, 2024
  • Reason for Increase: Cost recovery due to new powers under the Economic Crime and Corporate Transparency Act.
  • Impact: Higher costs for company incorporation, annual filings, and other services.

 

Why the Increase?

 

Companies House has increased fees to cover the costs associated with implementing the Economic Crime and Corporate Transparency Act

This act enhances the Registrar’s powers, aiming to improve company information accuracy and reduce fraud.

 

How Much Have the Fees Increased?

 

Here are some of the notable fee changes:

  • Company Incorporation: From £12 to £50 (317% increase)
  • Confirmation Statement: From £13 to £34 (162% increase)
  • Voluntary Strike Off: From £8 to £33 (312% increase)
  • Change of Company Name: From £8 to £30 (275% increase)

These changes reflect a broader trend towards digitalisation, with digital processes remaining more cost-effective compared to paper filings.

 

What Does This Mean for Small Businesses?

 

  1. Increased Costs: The most immediate impact is the higher cost for various company-related services. This will affect your budget for setting up and maintaining your business.
  2. Operational Adjustments: The fee increases make paper filings significantly more expensive, encouraging a shift towards digital channels. Businesses may need to invest in digital processes to save on costs.
  3. Compliance Burdens: With the introduction of new regulatory requirements, small businesses will need to spend more time and resources on compliance. This could be particularly challenging for businesses with limited staff and financial resources.

 

How to Adapt to the Changes

 

To mitigate the impact of these fee increases, consider the following steps:

  • Budget Adjustments: Review your budget to account for the increased costs associated with compliance and filing fees.
  • Digital Transition: If you haven’t already, start transitioning to digital filings to benefit from lower costs compared to paper filings.
  • Stay Informed: Keep up with updates on regulatory changes and fee structures to ensure compliance and efficient financial planning.

 

 

While the fee increases at Companies House present new challenges, they also come with benefits such as enhanced fraud protection and more accurate company records. 

Small businesses must adapt to these changes through proactive financial planning and operational adjustments.

For detailed information on the Changes to Companies House fees and how they affect your business, feel free to contact us at Accounts Direct.

We’re here to help you navigate these changes and ensure your business remains compliant and cost-effective.

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