The Economic Crime and Corporate Transparency Act will introduce major reforms to UK company law in 2024. As a company director, you must understand how these changes impact your responsibilities and reporting requirements.

What’s Changing?

The main changes that company directors and Persons with Significant Control (PSCs) should be aware of include:

Identity Verification

• Directors and PSCs will need to verify their identity with Companies House before setting up or taking control of a company. This aims to improve the accuracy of information held.

Confirmation Statements

• Extra information will need to be provided on confirmation statements from March 2024 onwards, including confirmation that the company’s activities will be lawful.

Registered Office Address

• PO box addresses will no longer be allowed as registered office addresses. All companies must have a valid physical location.

Registered Email Address

• A registered email address will be mandatory for every company for Companies House to send important notifications.

Increased Transparency

• More shareholder and director information will need to be kept up-to-date, and restrictions on corporate directors are being introduced.

Electronic Filing

• All companies will eventually need to file accounts using software rather than paper/PDF. Extra information is also required on small company accounts claiming audit exemptions.

Data Sharing

• Companies House will have increased data-sharing powers with other agencies like HMRC and law enforcement. Some personal data can still be suppressed for privacy reasons.

Actions for Company Directors

Directors should start preparing for these changes now, even though some details are still to be finalised:

• Verify your identity if setting up a new company or joining as a director/PSC.
• Notify Companies House of a current registered email address for your company.
• Ensure your registered office address is suitable under the new rules. Consider alternatives to a PO box if needed.
• If you qualify as a small or micro company, check the account information you will need to file going forward.
• Put plans in place to transition to electronic accounting software if you still need to use this for submitting accounts.

Staying Compliant in Future

This reform aims to significantly increase the quality and accuracy of information held at Companies House. Failing to comply with new requirements around identity verification, confirmation statements, and account filing could lead to penalties. Monitoring changes to legislation and maintaining robust record-keeping will be key. Seeking professional advice from your accountant can help directors implement suitable processes and adapt to new systems ahead of deadlines.

Early action will ensure your company stays compliant as these widespread reforms continue rolling out. Reach out for support to understand how your responsibilities may change.