As a business owner, understanding the intricacies of UK Company Law is no small task. The legal framework that governs the activities of businesses in the UK is complex and dynamic, continuously evolving to reflect changes in the wider socioeconomic environment. From the formation of a company to its operations, management, and even its dissolution, UK Company Law influences every aspect of business activity.
This body of law ensures that businesses operate in a fair and transparent manner, protecting the interests of shareholders, creditors, and other stakeholders. It sets out the rules and regulations for various aspects of business, such as company registration, share capital, directors’ duties, and corporate governance. However, like any other area of law, UK Company Law is not stagnant. It evolves and changes, reflecting the changing needs and demands of the business environment. This is where the challenge lies for businesses – keeping abreast of these changes and understanding their implications.
The biggest changes since its development have been announced, and are being delivered in a bid to improve on ‘economic crime and corporate transparency.’
Recent Changes to UK Company Law.
There are quite a number of notable changes that will affect business owners in the UK, and we know it can be confusing, so we’ve summarised the changes below:
Identity Verification: All business owners setting up, controlling or managing a company will need to verify their identity.
Accounts Filing: As part of the Making Tax Digital initiative, filing of accounts will have to be done via accounting software.
Data Quality: In order to improve the data the government holds of UK businesses and their owners, Companies House will have greater powers to query business information, such as name and address.
Confirmation Statement: New requirements to provide a registered email address and to confirm that the future activities of the company will be lawful.
Companies House fees: Increasing fees to take new future expenditure into account, as well as making sure costs are recovered from existing expenditure.
Protecting your information: Individuals will be able to apply to suppress personal information from any historical documents and be protected from public view.
Changes to limited partnerships: As well as Limited partnerships needing to file their information through authorised agents, they will also need to provide more information than usual.
Investigation, enforcement and data sharing: More effective investigation and enforcement powers for Companies House, and new powers to share data with law enforcement agencies and other government departments.
Who is Affected by These Changes:
If you’re a business owner, you will be affected. New and existing company directors, people with significant control of a company, and agents or persons who file on behalf of a company.
It also applies to all privately and public limited companies, limited partnerships, limited liability partnerships, community interest companies and overseas companies.
As mentioned above, it does include anyone who files company information, returns and statements on behalf of companies, such as accountants and authorised corporate service providers.
Understanding how these changes affect your business
FiguresUK would advise having a comprehensive read of the HMRC website and all the information they have announced regarding these upcoming changes, as well as taking a look at our Making Tax Digital article, as this will help when it comes to having to file via software. Once you have an understanding of what affects your business, you can begin to understand how and what changes you need to make. It might be that you currently undertake all business admin and filing yourself, but would benefit from an official accountant taking over and registering on your behalf. Our simplest advice is to keep all business paperwork, including invoices, receipts and any other documents organised, set reminders so you don’t miss any deadlines, and consider speaking to an accountant, like us, to ease the pressure of getting something wrong.
How to ensure your business remains compliant with UK Company Law
Compliance with UK Company Law is not just about avoiding legal penalties – it’s also about maintaining the trust and confidence of stakeholders, staff and customers. One of the most effective ways to ensure compliance is to have a robust compliance programme in place. This should involve regular audits and reviews, as well as training for staff. In addition to this, businesses should seek advice from a professional to ensure that they are fully aware of their legal obligations. This can help to prevent breaches of the law and ensure that businesses are prepared for any changes in the legal landscape.
For these latest changes, it’s important to try and get ahead of them and work out if and when you need to implement changes within your business.
Future changes to UK Company Law and How to Stay Prepared
Businesses must be prepared to adapt to future changes in UK Company Law. Staying informed is crucial. Businesses should make it a priority to keep up-to-date with legal developments, either through professional advice or by subscribing to legal updates. In addition to this, businesses should develop a proactive approach to legal compliance. This involves not only responding to changes as they occur, but also anticipating future changes and planning accordingly.
Navigating the new changes of UK Company Law seems challenging, but with the right approach and support, businesses can adapt to these changes and thrive. By staying informed, seeking professional advice, and developing a proactive approach to compliance, businesses can navigate the complexities of UK Company Law and ensure their long-term success.
Jason Cannon
Managing Director and Figures UK Founder
No matter the size of your business, whether you’re a sole trader or a Limited company, when it comes to accounting, it can be a little confusing to say the least.
That’s where we come in. We’re on hand to listen, advise and provide our expert support.
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