Companies will soon see changes to the way they file their accounts as part of incoming legislation to help tackle money laundering and other illicit activity.

Following the introduction of the Economic Crime Transparency and Enforcement Act 2022, one of the major developments in corporate transparency will be the reform of Companies House.

The government will introduce changes to how companies report information and what information they report, when filing their annual accounts with Companies House.

Although this Bill is still in the final stages and has yet to achieve Royal Assent, we wanted to highlight the key changes that have been announced so far.

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Forthcoming key changes

• New identity verification process for anyone setting up, running, owning or controlling a company in the UK. There will be two routes for identity verification: direct verification with Companies House or through an Authorised Corporate Service Provider.
• Small companies will no longer have the option to prepare and file abridged accounts. They will now be required to file accounts that include a profit and loss account and a directors report.

Previously, this information would have been prepared by the company and not filed with Companies House; therefore, it was unavailable to the public.

• Micro entities will also no longer have the option to prepare and file abridged accounts. They will be required to file accounts that include a profit and loss account. Micro entities will not have to prepare or file a directors report.

Where a company qualifies for an exemption from the requirement to have accounts audited e.g. categorised as a ‘small company’, the directors will now be required to make a statement.

• A limit introduced to the number of times a company can shorten its accounting reference period.
• Filing deadlines will not be shortened at the moment, but, legislation will be introduced to facilitate future changes.
• All companies will be required to file accounts digitally.
• Documents that aren’t consistent with information held by Companies House will be rejected, the company will need to resolve the inconsistency and send replacement documents within 14 days.
• Dormant companies will be required to file an eligibility statement confirming that the Company is not trading.

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How Jerroms can help

As a business, it probably seems like your list of reporting requirements with Companies House and HMRC is never ending. Keeping company records up-to-date and making sure they’re filed on time is just one small but important part of running a business. Missing your filing deadline could affect your credit score and access to finance.

Be assured that as our client we will keep you and your business informed as and when these changes happen. You are in safe hands and we will be in touch to guide you through the process.

For any questions or more information,  please reach out to your Account Manager or our team.