Month: January 2024

Companies House have issued an update on their first implementation of changes brought about by The Economic Crime and Corporate Transparency Act. We have copied in the relevant comments made in a recent blog post.

Companies House are aiming to introduce the first set of changes on 4 March 2024. The introduction of these changes needs secondary legislation and so this date is still dependent on parliamentary timetables. It will not be earlier than 4 March 2024.

The changes include:

• greater powers to query information and request supporting evidence;
• stronger checks on company names;
• new rules for registered office addresses;
• a requirement for all companies to supply a registered email address;
• a requirement for all companies to confirm they are forming the company for a lawful purpose when they incorporate, and to confirm its intended future activities will be lawful on their confirmation statement;
• the ability to annotate the register when information appears confusing or misleading;
• taking steps to clean up the register, using data matching to identify and remove inaccurate information; and
• sharing data with other government departments and law enforcement agencies.

Three items that will need your consideration before 4 March 2024 are:

1. If you are still using a PO Box address as your registered office, you will need to change this. You can still use a third-party agent’s address if they meet the conditions for an appropriate address.
2. From 4 March 2024, there will be a new requirement for all companies to give a registered email address to Companies House. This email address will not be published on the public register. From 4 March 2024, new companies will need to give a registered email address when they incorporate. Existing companies will need to give a registered email address when they file their next confirmation statement with a statement date from 5 March 2024. Companies House online services will prompt you to supply a registered email address when you file your next eligible confirmation statement.
3. When you incorporate a company from 4 March 2024, the subscribers (shareholders) will need to confirm they are forming the company for a lawful purpose. You will also need to confirm the company’s intended future activities are lawful on the confirmation statement. The intention of these new statements is to make it clear that all companies on the register, new and existing, have a duty to operate in a lawful way. Companies House may act against your company if they receive information that confirms you are not operating lawfully.

Leaving aside tax planning issues all businesses should be considering business planning opportunities if they presently have an accounting year end date of 31 March 2024.

For example:

• Do directors need to review year end bonuses or final dividends?
• Have capital expenditure budgets been considered? Should large investments in acquisition of new assets be completed before or after 31 March? What are the tax implications?
• Based on recent management accounts, what changes can be made in the final months of your trading year to improve liquidity, profitability and solvency?
• Start considering now how you will approach your bankers or business funders for continuing support next year. Are current challenges likely to result in a cashflow difficulties?

We have two months to consider your planning options. Once the 31 March 2024 Rubicon is passed, many planning options will disappear.

Many firms have a 31 March year end, but this heads up to have a pre-yearend review apply to all businesses, whatever their accounting date.

There are enough negative economic challenges at present and making the most of planning options before the end of your trading year makes sense.

Please call so we can organise a planning session with you.

Industry leaders have welcomed the Government’s new Critical Imports and Supply Chain Strategy, safeguarding UK supplies of critical goods such as medicines, minerals and semiconductors.

In a press release issued 17 January 2024, The Department for Business and Trade said:

“More than 100 top UK firms, including pharmaceutical and manufacturing leaders and business representative bodies like the Association of the British Pharmaceutical Industry (ABPI), the Society of Motor Manufacturers and Traders (SMMT) and the Critical Minerals Association have contributed to the strategy to ensure it helps develop resilient and secure supply chains that protect both their business and the consumers who rely on them.”

This issue has taken on critical importance now shipping is disrupted in the Red Sea.

Ross Baker, Chief Commercial Officer, Heathrow said:

“Heathrow connects the UK to 95% of the world’s economy and facilitates imports of the high value, time-critical goods that British industries like pharmaceuticals, manufacturing and technology rely on. We welcome Government initiatives that make doing business in the UK easier and more efficient, from shoring up supply chains to streamlining cargo processes at the airport, so Heathrow can meet growing demand to import and export across the globe.”

UK Chamber of Shipping Commercial and Governance Policy Director, Katrina Ross, said:

“We welcome the UK Government’s focus on critical imports and supply chains through the publishing of this strategy. 95% of UK imports and exports are moved by sea, and our sector’s challenges should be considered as part of the move to build supply chain resilience and to help deliver the UK and global net-zero ambitions.”