Economic Crime and Corporate Transparency updates

Changes are due to come in from Companies House under the Economic Crime and Corporate Transparency (ECCT) Act. Here we provide a summary of the upcoming changes as well as a reminder of some that have already been introduced.

Unlike some legislation that may not seem to have significant everyday effects, some of these changes will have a practical impact on all directors and company owners, while others may lead to changes in what your accounts will look like when published at Companies House – so please read on and contact your lead Carpenter Box contact with any questions you may have.

What’s happened already?

Addresses

Last year, Companies House introduced new rules for registered office addresses. All companies must, at all times, have an ‘appropriate address’ as their registered office. An address is ‘appropriate’ if, in the ordinary course of events: 

• a document addressed to the company, and delivered there by hand or by post, would be expected to come to the attention of a person acting on behalf of the company;
• the delivery of documents there is capable of being recorded as delivered.

There is also now a requirement for all companies to give a registered email address to Companies House.

You must keep your registered office address and your registered email address up to date to make sure you receive important information from Companies House. For some clients, we are able to offer a service to support this if needed.

Companies House may take action against the company and its officers if you do not meet these requirements, so please talk to your everyday Carpenter Box contact if you have any concerns in this area.

Statement to confirm the company is lawful 

It might sound strange, but going forward all companies need to confirm that the intended future activities of the company will be lawful.

This is now a feature on a company’s confirmation statement, and requires agreement each year, otherwise you will not be able to file your confirmation statement. 

Financial Penalties

New enforcement powers have been provided to Companies House through the ECCT Act and with these more financial penalties for non-compliance of legal obligations can be expected.

Where there has previously been what could be called a ‘light touch’ around some areas like the filing of a company’s confirmation statement, from now on omissions or late filings around such can lead to warnings and penalty notices.

You can read more here.

Fees

As well as empowering Companies House and endeavouring to provide sanctions to encourage timely and accurate filing, these financial penalties also provide additional funding to support investment in infrastructure changes and IT improvements which is needed to implement what the ECCT Act is aiming to achieve.

In addition, there has already been an increase in Companies House fees that has been applied across various forms and services. Read more about this in our blog here.

What’s coming up?

Get ready for identity verification

Anyone setting up, running, owning or controlling a company in the UK will soon need to verify their identity to prove they are who they claim to be.

This will not only apply to Directors and Persons of Significant Control (PSCs) when new companies are incorporated, but also everyone appointed as such in existing companies.

It is important to make sure that all your personal details held at Companies House are correct and up to date before this process becomes mandatory. You can check here or speak to your contact at Carpenter Box.

While this verification process can be undertaken voluntarily from April 2025 at Companies House, we expect it to become mandatory from Autumn 2025 and will keep you informed of the timeline and processes as we learn more.

Improving transparency of company ownership

While we are not sure when this measure will come into force, there is secondary legislation forthcoming by which companies will need to tell Companies House the full names of all shareholders and provide a one-off full shareholder list when they file their confirmation statement.

There will likely be some limited exemptions, but in the main once in force this can be expected to be published on the public record of the company.

It is worth noting that individuals have also been given the ability to suppress historical information that currently sits on public record. For companies that have previously included residential addresses, for example, they can request that such documents be suppressed from public inspection. Again this is coming in a phased approach, and Companies House has more information here.

Here at Carpenter Box, we would be happy to help if you have any concerns around this area.

Changes to accounts

This next change is potentially not due until the start of 2026. Companies House are planning on streamlining the accounts filing options for small and micro-entity companies.  

Small and micro-entity companies are expected to have to file their profit and loss account as part of their financial statements. The detail of what they will need to include will be set out in secondary legislation yet to be drafted. This is being developed in consultation with business and accountancy groups. 

Small companies that do not qualify as micro entities will also need to file a directors’ report. 

The omission of the profit and loss account in recent years from filed financial statements has been deemed to have the potential to appeal to fraudsters wishing to present a false image of a company. Improving transparency and having better quality information will make it easier to spot fraud when it happens and will also help to support business growth.

While not a change that is expected to be onerous, it is one that may be cause for concern to some company owners in terms of the additional information being suggested that will appear on public record. Please do not worry unduly at this time – we are keeping an eye on ongoing consultations and announcements. We will of course be talking to you as things become more defined, so you fully understand what this means for you and your company.

Companies House scams

With all this going on, it is unfortunately a time when various scams are being discovered by those impersonating Companies House. These fraudulent messages often look official and can catch even the most cautious business owners off guard. With sensitive information publicly available after incorporation, it is important to stay alert and know how to protect yourself.

Read more about this over on our recent blog and stay alert.

Please don’t hesitate to contact one of our team if you have questions on any of the ECCT changes.