Companies House has issued a warning to company officers to “keep on top of their responsibilities.”

The organisation that maintains the register for companies in the UK says it will take prompt action to enforce the law, after being given enhanced powers to ensure that the information contained on its register is kept accurate and up to date.

In a press release published on the Government website, Companies House said that it will support businesses to comply with their legal obligations, for example the requirement to file company records, such as confirmation statements and accounts, on time.

However, those businesses that do not comply could face a financial penalty.   More serious offences could result in civil action (for example court ordered filing of documents), director disqualification, or even criminal prosecution.

Whilst some of these sanctions are already an established form of deterrent used by other government agencies, the introduction of new financial penalties means that Companies House will be more active in utilising its enforcement powers to ensure the accuracy of the information on its register is maintained. 

Financial penalties appear to range from £250 for a first minor offence to £2,000 for a fourth or very serious offence. If a penalty is not paid within 28 days, Companies House could contact a debt recovery agency or issue a claim in court. Both options are likely to incur further fees for the non-compliant company.

What does it mean for companies and directors?

While Companies House says that it will be fair in ensuring and enforcing compliance, the underlying tone is that repeat offenders will be hit hard. The days of companies persistently filing late returns, accounts, confirmation statements or other documents without swift repercussions look to be at an end.

Directors of dormant companies should also take heed. Even if they do not intend to carry on any kind of business activity or receive income, they must still file company accounts and confirmation statements at Companies House every year.

As well as financial penalties being imposed on a non-compliant business, Companies House will work alongside other enforcement agencies such as the Insolvency Service to take effective action, which may include director disqualification. This means that a company director can be disqualified from acting as such for a specified period (a minimum of 2 years, up to a maximum of 15 years for particularly serious cases).

The consequences of director disqualification can be wide-ranging, as the person disqualified also cannot be a receiver of a company’s property, act as an insolvency practitioner and may not be able to take up other positions (for example, as a solicitor, accountant, pension trustee of charity board member).

The Companies House enforcement policy which sets out how it will take action to enforce compliance with its filing requirements was published on 27 September 2024.

JMW’s specialist solicitors can provide advice to directors about their obligations.