Category: Corporate Governance & Regulation

The Government has announced plans to simplify corporate reporting and reduce the administrative burden placed on UK businesses. It estimates that the proposed reforms could save businesses more than £450 million each year.

The measures are expected to include replacing some paper-based reporting with digital alternatives, simplifying existing requirements and considering how artificial intelligence could make reporting more efficient.

For many business owners, this will be welcome news. Time spent completing forms and dealing with overlapping reporting requirements is time that cannot be devoted to customers, employees or business development.

However, simpler reporting does not necessarily mean fewer responsibilities for directors. Companies will still need to maintain accurate accounting records and provide reliable information to Companies House, government departments and other interested parties.

Greater use of digital reporting may make the quality of a company’s underlying records even more important. If information is incomplete or inaccurate, moving it into a digital system will not correct the problem. It may simply allow an error to be reported more quickly.

Businesses should therefore use the proposed reforms as an opportunity to review how they collect and maintain financial and operational information. This could include checking that bookkeeping is kept up to date, supporting documents are retained and responsibility for completing statutory reports is clearly allocated.

Directors may also want to consider whether their present accounting software and internal procedures will be suitable for an increasingly digital reporting environment. Older manual processes may become harder to maintain as government systems change.

The detailed reforms will need to be examined as they are introduced. In the meantime, a well-organised accounting system remains the best foundation for meeting reporting requirements efficiently.

If you are concerned about the quality of your business records or would like help improving your accounting procedures, please speak to us.

An important change is coming to the way companies file their annual accounts.

From 1 April 2028, all UK-registered companies will be required to file their annual accounts with Companies House using commercial software. The existing web and paper filing routes for company accounts will close.

The change will affect companies that prepare and file their own accounts as well as accountants filing on behalf of clients.

There are other changes on the way too.

Small companies and micro-entities will be required to file a profit and loss account with Companies House. However, they will have the option of preventing this information from being published on the public register. Details of how this opt-out will operate are still to be confirmed.

The option to file abridged accounts will also disappear, and companies claiming exemption from audit will face strengthened eligibility statement requirements.

Although April 2028 may seem some distance away, businesses that currently prepare their own accounts using the Companies House online service should be particularly aware of the change.

They will eventually need suitable commercial software or will need to arrange for an accountant or other professional to file the accounts for them.

Companies already using accounting software should also check whether their existing package will support the new filing requirements.

There is no need for businesses to make immediate changes, but this is one of those developments worth knowing about well in advance.

Most company directors are aware that they must file annual accounts and a confirmation statement with Companies House. However, missing these deadlines can lead to unnecessary costs and, in some cases, much more serious consequences.

The most common financial penalties apply to the late filing of annual accounts. For a private company, the current penalties are:

• Up to one month late, £150
• More than one month but not more than three months late, £375
• More than three months but not more than six months late, £750
• More than six months late, £1,500

If your company files its accounts late in two successive years, these penalties are automatically doubled. This can become an expensive and entirely avoidable mistake.

The rules for confirmation statements are different. While there is no standard scale of automatic late filing penalties in the same way as for accounts, failing to submit a confirmation statement remains a breach of the Companies Act. Companies House may issue financial penalties, take enforcement action, prosecute company officers and, in serious cases, begin the process of striking the company off the register. Directors can also face fines of up to £5,000 for failing to meet their legal obligations.

The good news is that these problems are easy to avoid. Keep a diary of your filing deadlines, ensure your accounting records are up to date throughout the year and prepare accounts well before the filing deadline.

A few simple administrative procedures can prevent unnecessary penalties, protect your company's reputation and ensure that your business remains fully compliant with its Companies House obligations.

And if instructed to do so, clients can rest easy as we will keep an eye on filing deadlines for you. 

The Government has confirmed that important changes to Companies House filing requirements will now take effect from April 2028 (rather than April 2027), giving small companies and micro-entities additional time to prepare for the new rules.

One of the most significant changes is the requirement for small companies and micro-entities to file a profit and loss account with Companies House. This marks a substantial change from the current position, where many smaller businesses can submit abbreviated financial information that does not include details of their trading performance.

The announcement will be of particular interest to owner-managed businesses, many of which have traditionally valued the privacy afforded by the existing filing regime. Concerns have been raised by businesses and professional advisers that the publication of detailed profit information could make commercially sensitive data available to competitors, suppliers and customers.

In response to these concerns, the Government has confirmed that smaller companies will be able to opt out of having their profit and loss account placed on the public register. While the information will still need to be submitted to Companies House, it is not expected that it will automatically become available for public inspection. Further details of how this process will operate are expected before the new rules come into force.

The changes form part of a wider programme of reforms designed to improve the quality and transparency of information held by Companies House, while also helping to tackle economic crime and strengthen confidence in the UK corporate environment.

Although the new requirements will not apply until April 2028, directors of small companies may wish to begin considering how the changes could affect their business and what additional information may need to be prepared as part of their annual accounts process.

Companies House has published its business plan for 2026-27, setting out its priorities for the coming year as it continues to implement major reforms aimed at improving the quality of information held on the UK companies register and tackling economic crime.

A key objective is to improve the accuracy, reliability and usability of company data. Companies House plans to increase the use of automated checks, remove inaccurate information and strengthen data governance procedures. The organisation believes that more reliable company information will help support business confidence and economic growth.

The business plan also highlights continued efforts to prevent and detect economic crime. Companies House will expand data sharing with partner organisations and take more targeted enforcement action where there is evidence of abuse of the company registration system. It will work closely with law enforcement agencies to disrupt fraudulent activity and improve the integrity of the register.

Another major priority is the ongoing rollout of identity verification requirements for company directors and people with significant control. Companies House aims to ensure that all companies either comply with the new verification requirements or are progressing through an appropriate compliance or enforcement process by the end of the financial year.

The organisation has also committed to maintaining high levels of customer service, including keeping digital services available for at least 99.5% of the time and reducing waiting times for telephone enquiries.

For business owners and advisers, the plan provides a clear indication that Companies House reforms will continue to gather pace during 2026-27, with greater scrutiny of company information, stronger identity checks and increased action against those seeking to misuse the corporate framework.

Identity verification requirements at Companies House became a legal requirement for directors and people with significant control (PSCs) from 18 November 2025. This date marked the start of a 12-month transition period for identity verification. 

Companies House is introducing the new requirements on a phased basis and affected individuals are being contacted directly with guidance on what action is required and the relevant deadlines. It is estimated that between 6 and 7 million individuals will need to complete identity verification by November 2026.

Verification is generally a one-time process and can be completed either directly through Companies House using GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP), such as an accountant or solicitor.

Most individuals will be able to verify their identity online using photo identification documents such as a passport, UK driving licence or biometric residence permit. Alternative methods are also available, including in-person verification at selected Post Office branches or by using information linked to a UK bank account and National Insurance number.

Individuals who are unable to use the standard online or in-person routes may appoint an ACSP to verify their identity on their behalf. The provider must be registered with Companies House and supervised for anti-money laundering purposes.

Failure to comply with the new requirements could result in restrictions on company filings and penalties.

There has been considerable discussion over the past year about whether small companies would be required to file profit and loss accounts at Companies House. Many practitioners will be aware that proposals were introduced under the Economic Crime and Corporate Transparency Act 2023 which signalled a move towards greater transparency in company reporting.

Under those proposals, small companies and micro-entities would have been required to include a profit and loss account in the version of their accounts filed at Companies House. This would have marked a significant departure from the current position, where businesses can file reduced, or “filleted”, accounts that exclude detailed profit information from the public record.

However, in a recent development, the government has confirmed that these changes have been paused. Updates published via GOV.UK indicate that the planned implementation timetable will not proceed as expected, and that the reforms are now under review. Importantly, no revised date for introducing mandatory profit and loss filing has been announced.

For now, this means that the existing rules remain in place. Small companies and micro-entities can continue to file accounts without a profit and loss statement being made publicly available, although full accounts must still be prepared for shareholders and, where relevant, lenders.

While this announcement will be welcomed by many smaller businesses concerned about the disclosure of commercially sensitive information, it should be viewed as a pause rather than a permanent change in direction. The broader policy objective of increasing corporate transparency remains, and it is likely that similar proposals will re-emerge in the future.

A Companies House blunder has raised concerns after a flaw in the WebFiling service briefly exposed sensitive company data. The issue, identified on 13 March 2026, meant that a logged-in user could potentially access and amend limited details of another company by carrying out a specific sequence of actions.

Companies House has stated that this system vulnerability was not available to the general public. Only users with authorised access codes who were already logged into the system could have exploited it. Nevertheless, the nature of the flaw meant that certain private information, such as dates of birth, residential addresses and company email addresses may have been visible. There was also a risk that unauthorised filings, including accounts and changes to director details, could have been submitted on another company’s record.

After identifying this issue, Companies House shut down the WebFiling service at 13:30 on 13 March to investigate. Following independent testing, the system was restored at 09:00 on 16 March. Companies House has said that passwords and identity verification data were not compromised, and that existing filed documents, such as accounts or confirmation statements, could not be altered.

The issue is believed to have arisen from a WebFiling systems update in October 2025. It has been reported to both the Information Commissioner’s Office and the National Cyber Security Centre.

Companies are now being urged to review their registered details and filing history carefully. While no confirmed misuse has been reported so far, Companies House is continuing to investigate. If a company has a concern, it should raise a complaint via the Companies House complaints page at www.gov.uk/government/organisations/companies-house/about/complaints-procedure and include evidence to describe the issue.

Bona vacantia is Latin term meaning “ownerless goods”. The bodies that deal with bona vacantia claims vary across the United Kingdom, but they all ultimately represent the Crown.

Under company law, when a company is dissolved, any remaining rights or property automatically pass to the Crown as bona vacantia. This includes valid rights such as a tax refund from HMRC. However, if the company never had a genuine legal entitlement, for example, because a claim was fraudulent, then no right existed in the first place and nothing passes as bona vacantia.

It is important to note that only formally dissolved companies are affected by bona vacantia. A company that is “in liquidation” or “being wound up” is in the process of closure but still legally exists. Until dissolution takes place, the company’s property and rights remain vested in the company.

In some circumstances, a company may apply to be restored to the register if it was dissolved less than six years ago. If restoration is successful, any property previously treated as bona vacantia revests in the company as though it had never been dissolved. However, restoration can be a very complex and costly process. For that reason, directors should ensure that all assets, including potential tax refunds, are properly addressed before a company is dissolved.

A person with significant control (PSC) is someone who owns or exercises significant influence over a company. They can also be referred to as a “beneficial owner”.

Every UK company is required to identify its PSCs and register their details with Companies House. A company can have one or more PSCs.

A PSC is someone who meets one or more of the “nature of control” conditions.

A PSC is usually anyone who:

• has more than 25% shares or voting rights in your company
• can appoint or remove a majority of directors
• can influence or control your company or trust

Companies should review their register of members as well as their constitution and articles of association to help determine who meets these criteria.

When incorporating a company, and whenever PSC details change, the required information must be filed with Companies House within 14 days of confirmation. Required details include the PSC’s name, date of birth, nationality, correspondence or service address, level of shareholding and the date they became a PSC.

PSCs must also verify their identity and provide a personal code. Failing to provide accurate information, or refusing to respond to formal notices, is a criminal offence.

Did you know you can monitor any UK company for free and get email alerts when key details change, which can help protect your own business from unexpected or unauthorised filings?

A significant amount of information about companies is available in the public domain from Companies House. Companies House is responsible for incorporating and dissolving limited companies, examining and maintaining statutory records, and making company information publicly accessible.

Much of this information is available free of charge, in line with the government’s commitment to open data. As a result, all publicly available digital information held on the UK register of companies can be accessed without cost.

The information available includes core company details such as the registered address and date of incorporation, details of current and resigned directors and officers, copies of documents filed with Companies House, mortgage and charge information, previous company names and insolvency records.

In addition, you can choose to monitor a company and receive email alerts whenever new documents are filed, such as changes to directors or registered office addresses. This can also be a useful safeguard for your own company, helping you to identify any unexpected or unauthorised filings at an early stage.

A Company Voluntary Arrangement (also known as a CVA) is a special arrangement that allows a company with debt problems or that is insolvent to reach a voluntary agreement to pay its business creditors over a fixed period of time.

The arrangement is similar to the Individual Voluntary Arrangement (IVA) that can be used by a sole-trader or self-employed person who is unable to pay their debts.

An application for a CVA can only be made with the agreement of all directors of the company in question or all of the partners of a limited liability partnership (LLP). A CVA can only be created by using the services of an insolvency practitioner. They will be responsible for set up and administration of the arrangement.

Once an insolvency practitioner has been appointed the following steps will take place:

1. The insolvency practitioner will work out an ‘arrangement’ covering the amount of debt the company can pay and a payment schedule. They must do this within a month of being appointed.
2. The insolvency practitioner will write to creditors about the arrangement and invite them to vote on it.
3. A CVA must be approved by creditors representing at least 75% of the debt value of those who vote (rather than 75% of the total overall debt).

If the agreement is approved and the company does not meet the terms of the CVA then any of the creditors can apply to have the business wound up.

Last week, we covered the new requirement for directors and persons with significant control (PSCs) to verify their identities from 18 November 2025. This process will be rolled out over 12 months, with Companies House reaching out directly to companies, providing guidance on what actions need to be taken and the deadlines for each step.

According to Companies House, ID verification is a significant step forward for UK businesses and offers numerous benefits. Ensuring that company directors and PSCs verify their identities, will help make sure that the people setting up, running and controlling companies are who they say they are.

This is intended to:

• improve the accuracy and reliability of data on the register;
• strengthen protections against fraud; and
• support a more transparent and trusted business environment.

This also enhances the credibility of data held by Companies House, which is important for businesses looking to build trust with investors, consumers and potential business partners. A verified presence on the register can help a business demonstrate they are legitimate and professional, helping them stand out in the competitive business landscape.

The introduction of ID verification will also make it harder for fraudsters or criminals to create anonymous corporate structures for illicit activities. This added layer of security strengthens the business environment by reducing the risks associated with fraud and economic crime.

For businesses, being listed on Companies House with verified details can boost credibility, aiding in securing contracts, attracting investors and accessing finance. It can also enhance opportunities for due diligence, helping companies evaluate potential suppliers and customers more confidently.

From 18 November 2025, all company directors and people with significant control (PSCs) will be legally required to verify their identity at Companies House. This verification is being phased in over 12 months and Companies House is contacting companies directly with guidance regarding what needs to be done and by when.

These changes are intended to help ensure that people setting up, running and controlling companies are who they say they are. An estimated 6 to 7 million people will need to verify their identity by November 2026. The verification process will usually be a one-time requirement. Verification can be undertaken directly with Companies House through GOV.UK One Login or via an Authorised Corporate Service Provider (ACSP).

If you are using GOV.UK One Login you will be asked simple questions to find the best way for you to verify your identity. You must provide answers about yourself, not your company. Depending on your answers, you will then be guided to verify:

• with an app 
• by answering security questions online 
• by entering your details from your photo ID on GOV.UK One Login first, then going to a participating Post Office

To verify your identity at Companies House, you can use the GOV.UK online verification service if you have one of several accepted photo identification documents. These include a biometric passport from any country, a full or provisional UK photo driving licence, a UK biometric residence permit or card or a UK Frontier Worker permit.

If you do not have any of the accepted forms of photo ID but live in the UK, there are alternative ways to verify your identity. This includes verifying your identity in-person at a Post Office or using details from your bank or building society account together with your National Insurance number.

If you are unable to verify your identity using any of the available online or in-person methods, you can appoint an ACSP, such as an accountant or solicitor to verify your identity on your behalf. The ACSP must be registered with Companies House and a UK Anti-Money Laundering (AML) supervisory body. You will need to provide approved documents as evidence of your identity and the agent may charge a fee for their services.

Thinking of starting a company at 16? Know the rules, risks and responsibilities before you take the leap.

The Companies Act 2006 does not set a minimum age for shareholders, meaning even minors can hold shares unless a company’s articles of association explicitly state otherwise. However, the minimum age for a company director in the UK is 16 years.

Directors carry significant legal responsibilities, including ensuring that company accounts and reports are accurate and filed on time with the relevant authorities. Even if the company is dormant, you must still submit confirmation statements and accounts annually without fail.

Setting up a company is generally straightforward, but being a director comes with serious ongoing responsibilities. These duties are not just formalities, and failure to meet them can lead to personal fines, disqualification or even imprisonment.

Even dormant companies must file annual accounts and confirmation statements regularly. While directors can delegate daily tasks, such as hiring an accountant or other professionals, they remain legally responsible for the company’s records, accounts, and overall performance.

Seeking professional advice before starting a company is highly recommended, especially for a 16-year-old unlikely to have all the necessary business knowledge.