Blog > Companies House Fee Changes from May 2024 – What You Need to Know

Companies House Fee Changes from May 2024 – What You Need to Know

Company Formation
Companies House Fee Changes from May 2024 – What You Need to Know

The Economic Crime (Transparency and Enforcement) Act itself makes for such arrangements under new rules in October 2023. Through that, jurisdiction of an authority would end in the UK to strong  companies’ houses, without allowing any opportunity for organised crime to abuse the exposure of the UK economy. By now, the company house is routinely infusing its strength so that it can conduct scrutiny with respect to business makers. And what is the intention is that it will vary to extend its companies action requirements to the house.Powers will be given that will help them counter organised crime and help to ensure the accuracy of the information listed in the company’s register. There are some important aspects of this act that we will describe in this article.

Why Are Companies House Fees Increasing?

The fee structure at Companies House is being revamped with a view on financial sustainability and continued service improvement. According to the government of the United Kingdom, therefore, such change is needed for cause as follows:

  1. Inflation in operating costs
  2. Increased resource consumption on digital services for accelerated processing
  3. Increased safeguards against fraudulent and unauthorised use of company data

In turn, these things fit in with the wider reforms under the Economic Crime and Corporate Transparency Act for strengthening the business registry of the UK.

How Will This Affect UK Businesses?

The fee hike by Companies House will result in increased charges for incorporating companies, filing annual accounts, and altering business details. This is what it means for different stakeholders:

  1. Startups and New Companies: The higher incorporation price might make it cost-prohibitive with greater entry costs, especially for small business owners.
  2. Existing Companies: Greater amounts for confirmation statements and changes to names will mean businesses have to budget more for annual filings.
  3. Accountants and Agents: Professionals who have more than one client will adjust their pricing models accordingly.

What Happens if I Buy a Formation Package Before May 1st but File After?

If you buy a package for starting a company before 1 May 2024 but then submit it after the new fees go into effect, then you shall have to pay the new increased Companies House fees. The relevant date for the applicable fee is always the submission date and not the purchase date of the package. Therefore, to avoid incurring any extra charges, it is better to plan and complete the formation and submit it before 1 May 2024. Contact your formation provider about their specific terms regarding fee adjustments. 

New Companies House Fees from 1 May 2024

  1. Company Incorporation (Online): £12 → £50 (317% increase) 
  2. Company Incorporation (Paper): £40 → £71 (78% increase) 
  3. Confirmation Statement (Online): £13 → £34 (162% increase) 
  4. Confirmation Statement (Paper): £40 → £62 (55% increase) 
  5. Change of Name (Online): £8 → £20 (150% increase) 
  6. Change of Name (Paper): £10 → £30 (200% increase) 
  7. Voluntary Strike-Off (Online): £8 → £33 (312% increase) 
  8. Voluntary Strike-Off (Paper): £10 → £44 (340% increase)

Will Companies House Fees Change Again After May 2024?

Whether the fee hike of May 2024 will indeed mark the end of changes to Companies House fees is in fact determined by the government which has stated it will review the fees regularly due to cost increases relating to inflation as well as continued enhancement in its digital services and fraud prevention efforts.The Companies House fee structure has not made any new updates but most people are expecting that companies should be ready for any further announcements. Keeping an ear up for all the major announcements made by Companies House is useful for further changes. If you wish to maintain a practical presence within the various components discussed above, we would recommend considering our virtual office services.

How to Prepare for the New Fees

  1. Organise File Early: Get your confirmation statement registered or filed before May 1, 2024, to avoid a registration fee. 
  2. Review Business Expenses: Change your budget accordingly with the new fees.    
  3.  Use Digital Services: It is still cheaper to submit digitally than via paper filing, so wherever possible, go digital.
  4. Stay Updated: Watch out on the updates of companies’ houses for your compliance.

Company Incorporation and Registration Fees

1. Online Incorporation

  1. Old Fee: £12
  2. New Fee from 1 May 2024: £50 (an increase of 317%)

Companies can use the online incorporation for the registration through the digital platform of Companies House making it faster and cheaper than traditional paper based registration. With the proposed hike in fees from May 2024, the costs are already going to be substantially increased, so it is advisable to register before the deadline in order to save on fees. 

2. Paper Incorporation

  1. Old Fee: £40
  2. New Fee from 1 May 2024: £71 (an increase of 78%)

To register a company using paper is to file the paper forms to Companies House. This avenue remains available for those who still seek to tilt the balance in favour of paper, but fees are set to rise substantially in May. As always, an increase in costs has triggered the increase in fees, along with higher processing costs and increased measures to push for digital services.

Overview of LLP fee changes

From that date, namely May 1, 2024, the fillip would reach LLP fees with respect to other changes to be instituted in fee structure at Companies House. The cost of online registration for LLP tends to increase from 12 Pounds to 50 Pounds, while paper registration fees would rise from 40 Pounds to 71 Pounds. So also would annual confirmation statement fees: for example, online filings would attract a fee of 34 Pounds instead of the past 13 Pounds or 62 Pounds instead of 40 Pounds for paper filings. These are mainly for covering the rising costs of running the organisation and reforms under the Economic Crime and Corporate Transparency Act. LLPs are solicited to file from that date onward directly like for instance pre 1 May 2024 filings to avoid the additional costs.

Conclusion

Ending on May 1, 2024, the new hikes in Companies House fees would not impact only one set of businesses but also affect an all-new set of businesses in respect of incorporation, annual filings, or any other service, making them more expensive now.The increase in fees aims to ensure the financial sustainability of services, improve digital services, and prevent fraud under the Economic Crime and Corporate Transparency Act. Businesses should act quickly to complete filings before the fee changes come into effect, use digital services where possible to save costs, and keep an eye on possible future reviews of the fees. With adequate planning, the adverse impact of these increases on business operations can be minimised.

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