What You Need to Know as a Business Owner
The UK government is implementing significant changes to company law through the Economic Crime and Corporate Transparency Act (ECCTA). These reforms aim to strengthen transparency and combat economic crime, ultimately benefiting businesses by fostering trust and confidence.
At Max Pro Accountants, we understand that navigating these changes can be complex. Here’s a breakdown of some key points to ensure your company remains compliant:
Increased Transparency Measures:
Registered Email Address:
All businesses must provide a valid email address for official communication with Companies House.
Registered Office Address:
Companies now require a physical, suitable address as their registered office. PO Boxes are no longer acceptable.
Lawful Purpose Statement:
New companies must confirm their legal purpose for incorporation and intended activities in their confirmation statement. Existing companies will need to include this statement in their next confirmation statement.
Enhanced Shareholder Information:
Companies House will require more details about company ownership to increase transparency.
Identity Verification:
By the end of 2024, new identity verification measures will be implemented. Directors, PSCs (People with Significant Control), and anyone filing on behalf of a company will need to verify their identities electronically.
Changes to Accounts Filing:
Micro and Small Entities:
New rules will require income and expense reports to be filed for micro and small entities, providing greater transparency for creditors and customers.
Director’s Statement:
Companies claiming an audit exemption will require a director’s statement confirming they meet the exemption criteria.
Digital Filing and iXBRL:
Paper filing will be phased out, and most businesses will need to file accounts digitally using iXBRL software for improved data readability.
Timeline and Next Steps:
The ECCTA reforms are being implemented gradually. Companies House will notify businesses well in advance of mandatory compliance dates.
How we can help you…..
Staying up-to-date on these changes can be overwhelming. Our experienced team can help you navigate the new regulations and ensure your company remains compliant.
We can assist with:
– Updating your registered information with Companies House.
– Preparing and filing your confirmation statement with the lawful purpose statement.
– Understanding the new requirements for filing accounts, including the director’s statement (if applicable).
– Preparing for digital filing and iXBRL software implementation.
Contact Us today!
Don’t wait until the deadline approaches. Proactively address these changes with our help . Schedule a consultation and ensure your business remains compliant with the latest regulations.