Companies House Changes

[UKSBD]

I see Companies House have now published some of the changes that will be coming

Changes to UK company law

The Economic Crime and Corporate Transparency Act introduces important changes to Companies House and UK company law. Find out what’s changing for you and your company so that you can take action at the right time.

changestoukcompanylaw.campaign.gov.uk

 

[Ozzy]

Indeed, if they do what is intended it would be a great leap in cleaning up the database of companies in the UK

 

[WaveJumper]

Probably long overdue, but when looking at this two items leaped out the screen

Increased fees:
Increasing fees to take new future expenditure into account, as well as making sure costs are recovered from existing expenditure.

No more DIY:
Limited partnerships will need to file their information through authorised agents, and they’ll need to file more information with Companies House.

 

[TMark]

I agree that these changes are long overdue. That said, I'm less than happy that my clients will now be able to see how modest my turnover and expenses are. I think this will hit my credibility. But I agree that greater transparency is needed.

 

[KeithGreen]

As a business broker I've had to comply with anti-money laundering legislation for about 20 years now. It staggers me that only now are Companies House requiring proof of ID to set up a company in the UK.

 

[Porky]

We’re also removing the option to file ‘abridged’ accounts.

Brilliant, so all my competitors will need to do shortly is go to companies house to view my full detailed accounts and know what i pay my suppliers, staff, directors and all my business.

As if it isn't hard enough as it is.

 

[Chris Ashdown]

But it should help companies have a better understanding for their credit control, and show up phoenix companies who have no real assets

 

[japancool]

Brilliant, so all my competitors will need to do shortly is go to companies house to view my full detailed accounts and know what i pay my suppliers, staff, directors and all my business.

Aggregated, so they won't be able to see what you pay for any particular item.

 

[japancool]

I know that come the next filing cycle, there will be at least 3 competitors looking at my accounts - just as I will be looking at theirs.

 

[Mark T Jones]

I know that come the next filing cycle, there will be at least 3 competitors looking at my accounts - just as I will be looking at theirs.

Everyone will be excited on the first cycle, after which it will be business as usual

 

[Scott DLE]

Seems like becoming an unlimited company is having more positives than previously. Won’t be surprised if a few swap over. Seems simple enough to do, not sure what happens to current assets and liabilities though, probably best to speak to an accountant about that.

 

[eteb3]

Seems like becoming an unlimited company is having more positives than previously. Won’t be surprised if a few swap over. Seems simple enough to do, not sure what happens to current assets and liabilities though, probably best to speak to an accountant about that.

Bear in mind once you go unlimited , you can never go limited again ever.

But the whole point is that assets, etc remain exactly as they are: “all” that happens is that the members acquire unlimited liability, and therefore accounts are not required (see my peevish points on another thread). The company is the same legal person.

The shareholders’ agreement will want a look: afaik once share capital is exhausted, liabilities pass to members in equal shares - not pro rata according to (now vanished) shareholding. Maybe @Lisa Thomas or @Frank Wessely will know?

 

[Scott DLE]

Bear in mind once you go unlimited , you can never go limited again ever.

But the whole point is that assets, etc remain exactly as they are: “all” that happens is that the members acquire unlimited liability, and therefore accounts are not required (see my peevish points on another thread). The company is the same legal person.

The shareholders’ agreement will want a look: afaik once share capital is exhausted, liabilities pass to members in equal shares - not pro rata according to (now vanished) shareholding. Maybe @Lisa Thomas or @Frank Wessely will know?

So basically your saying that current assets and any debt all stays the same, just you no longer have limited liability should things hit the fan?

I messaged my accountant about the changes and his response was: people can pretty much work out your profit as it is from the balance sheet as it stands. I don’t agree to be honest, it’s hardly the same as having your full P&L available to anyone who wants to check it out.

 

[eteb3]

So basically your saying that current assets and any debt all stays the same, just you no longer have limited liability should things hit the fan?

Exactly. Any contracts the company has are unaffected, too

 

[UKSBD]

Another update on this today

First changes to UK company law expected on 4 March

Companies House is aiming to introduce the first set of measures under the Economic Crime and Corporate Transparency Act on 4 March 2024.

www.gov.uk

 

[Newchodge]

Another update on this today

First changes to UK company law expected on 4 March

Companies House is aiming to introduce the first set of measures under the Economic Crime and Corporate Transparency Act on 4 March 2024.

www.gov.uk

"a requirement for all companies to supply a registered email address"

What's a registered emal address? With what or whom does it have to be registered?

 

[UKSBD]

"a requirement for all companies to supply a registered email address"

What's a registered emal address? With what or whom does it have to be registered?

I assumed that just meant, registered with them.

 

[Newchodge]

I assumed that just meant, registered with them.

I assume so too, but it is grammatically and logically incompetent. How can I supply a registered anything, if it can only be registered when I supply it?

 

[eteb3]

I assume so too, but it is grammatically and logically incompetent. How can I supply a registered anything, if it can only be registered when I supply it?

These high standards you’re proposing for civil servants are very touching.

I’m looking forward to their reply to my question as to how a company limited by guarantee supplies a list of its shareholders, as *all* companies will soon be required to do, and whether directors will be guilty of an offence if it doesn't. (Section 50, ECCT Act)

 

[TMark]

I assume so too, but it is grammatically and logically incompetent. How can I supply a registered anything, if it can only be registered when I supply it?

It's quite simple really. Companies House requires a registered email address for its register. One cannot register an unregistered address as this couldn't possibly register without first emailing the register to register the email.

 

[Ozzy]

What's a registered emal address? With what or whom does it have to be registered?

The email address is to function as the email equivalent of a registered office address, for the same purpose where Companies House statutory notices can be sent rather than using postal mail.
It is not for the public record though and solely for their use for this purpose.

 

[eteb3]

I think @Newchodge meant the requirement should be to “supply an email address suitable to be registered”.

It's only a “registered email address” once the Regisrar has registered it, so the company can’t supply one

 

[japancool]

The email address is to function as the email equivalent of a registered office address, for the same purpose where Companies House statutory notices can be sent rather than using postal mail.
It is not for the public record though and solely for their use for this purpose.

It's a good idea in principle, but I foresee lots of unforseen problems.

 

[eteb3]

I foresee lots of unforseen problems.

You starting a sideline in clairvoyance?

 

[japancool]

You starting a sideline in clairvoyance?

With a side order of séances, that was me channelling Donald Rumsfeld.