Companies House are flexing their new muscles under the Economic Crime and Corporate Transparency Act (ECCTA). We discuss how to avoid costly breaches of the new regulations.
This months newsletter may seem to contain “boring” housekeeping information but trust us when we say, it could save you from hefty penalties and even prevent your company being struck off the register.
Calculated News
Wedding bells
Our very own Nicole Pearson married Paul Turner last week. Congratulations & felicitations to the newly married couple. Nicole will keep her maiden name for professional communications.
Tax & Accounting
Every little helps!
Mortgage and Re-Mortgage – Cost of Finance
If your BTL or Commercial mortgage is coming to the end of its fixed rate term and you are considering taking advantage of the lower interest rates
Remember that mortgage arrangements fees are a Cost of Finance and are allowable for tax relief, so keep the invoices and send them through to us when we complete your tax return.
Companies House are Flexing their new muscles
The Economic Crime and Corporate Transparency Act (2023) (‘The Act’) reforms the role of Companies House and improve transparency over UK companies and other legal entities.
In practical terms, Companies House have introduced changes to Company incorporation, ID verification and Filing.
Some of the changes have already taken effect, others, like ID Verification are currently optional but will become mandatory from October this year.
All of these come with enforcement powers, either in the form of financial penalties or, in some cases, by initiating a strike-off of the company from the Register of Companies.
**** Please be aware that we are aware of 2 recent instances where Companies House have initiated the strike off process for Companies for breaches of the Registered Office regulations and Filing regulations. ****
Reversing the strike off process, or Re-registering a company is a costly and lengthy process and has implications for Mortgages or other charges placed on the company.
As Directors, PSCs Shareholders or partners of a limited company or partnership you have legal responsibilities.
You may engage 3rd parties such as accountants, registered office service providers, bookkeepers and virtual PA’s to complete some of these responsibilities however, you must be aware that it is you, as officers of the company, who are ultimately responsible for all actions or inactions of the company.
As an absolute minimum, and to prevent financial penalties or company strike off, you should:
- Ensure that your accounts are with Companies House on time.
- If we complete this for you, please ensure that you are aware of the deadlines and get all requested information to us in good time, allowing us to prepare your accounts.
- Please also ensure that you are available (by phone and email) to check and sign the accounts once prepared to allow us to file on time on your behalf. If you are going away on holiday or business, please ensure to let us know and provide alternative method of communication if possible.
- Ensure that your Corporation tax return or Partnership return is filed with HMRC on time and pay any outstanding tax on time.
- Notes As above.
- Ensure that your annual Confirmation Statement on time.
- If we complete this for you, full details of your currently held information to you to review. Please ensure that you read and respond accurately to all questions and report any changes needed in time for us to file your Confirmation Statement on time.
- Note: Failure to file a Confirmation Statement on time or inaccurately will now result in financial penalties and eventually strike off.
- Full details on the information provided on a Confirmation statement will be provided.
- Ensure that the Company has a valid Email address which is regularly checked.
- Ensure that the Registered office for the Company complies with the new regulations for Registered offices.
- It must be a physical office in the UK (not a PO box).
- The post must be able to be delivered to a person if necessary, and if using a registered office service, passed on to the relevant officer of the Company.
- If you are using a registered office service, please ensure that your do not let your payments lapse as this can (and has) resulted in strike off notices being issued.
- Agree to co-operate and provide information to allow relevant parties (Accountants, solicitors etc) to complete Anti Money Laundering and ID Verification checks for all officers of the company.
- You should also have a Business Government Gateway Account (see below for details)
Full details on your responsibilities as an office of a limited company or partnership can be found on the gov.uk website. https://www.gov.uk/running-a-limited-company
Information on your accounting and confirmation statement deadlines, charges and currently held information for your company can be found on the gov.uk website. https://find-and-update.company-information.service.gov.uk/
Create a Government Gateway Account for your business
You may already have a Government Gateway account (ID) for yourself to view your NI contributions, child benefit or self-assessment details tax.
Your limited company is a separate legal entity and therefore you need to create a separate Government Gateway Account (ID) for your Limited Company.
From June 2025, companies will no longer be sent reminder letters by HMRC about corporation tax reminders, instalment payment reminders and interest statements.
In future, corporation tax payers, and their accountants and agents, will have to go online on the HMRC website to view the information in their HMRC online accounts and where relevant, agent online service.
When HMRC stops sending letters from June, businesses will have to view their liabilities and payments in their HMRC online account.
It is now more important than ever to ensure that you have access to your business information and can view and take note of liabilities and payment deadlines.
How to Create a Business Government Gateway Account
To create an online Government Gateway account for your business, go to: https://www.gov.uk/log-in-register-hmrc-online-services
You can then register the business for Corporation Tax, VAT and other services including view and pay your Tax or VAT.
How to Create a Personal Government Gateway Account
If you haven’t already done so, it is also very useful to create an online Government Gateway account for yourself, go to: https://www.gov.uk/log-in-register-hmrc-online-services
You can use this to view your NI contributions, child benefit and other useful information. You can also view and pay for your self-assessment tax.
You will then be able to download and login to the new HMRC App to your mobile device: https://www.gov.uk/guidance/download-the-hmrc-app
We are always available to answer your questions by phone or email, and by Teams meeting on request.
Contact Us:
| Tax & Accounting | 01904 948860 Option 1 | tax@calculateduk.com |
