New Companies House fees mean a jump in costs
With Companies House increasing their fees from 1 May 2024, this will have an impact on every incorporated business in the UK. Kenny Logan from our Edinburgh office looks at the new fees and what these increases will mean.
Companies House increase in fees will result in increased costs for all entities registered, including private limited companies, limited liability partnership, charitable companies and overseas entities. The increased fees will fund the cost of measures being introduced under the Economic Crime and Corporate Transparency Act, which began with new and enhanced powers from 4 March to tackle economic crime.
Taking effect from 1 May, Companies House has increased its fees for more or less every service it offers where a fee is payable. These fees will be based on a “cost-recovery basis” where the fee must cover the cost of Companies House providing the service without any profit being made.
Whilst we can expect price increases from time to time, these fee increases are significant compared to the current fees. Given that every company must at least file an annual Confirmation Statement, the online filing fee will increase from £13 at present to £34, a 160% increase. This is a charge that will impact every single one of the 5m plus live entities at Companies House.
Fees for paper filings submitted by post remain higher than those for submitting the same documents electronically, encouraging companies to use online filing wherever possible. The cost to file company incorporation documents has increased to £50 when filed online compared with £71 when filed by post.
Companies House has published a full list of the new fees, which confirms higher fees for filing by post compared to online. This approach aligns the planned transition to software only filing set to be introduced in future, along with Companies House’s own ambition to be a fully digital organisation by 2025.
As you will see this increase in fees from Companies House is significant and totally out with our control. If you are an incorporated business, such as a Limited company, we hope that this article explains why you will see increased costs and what it will mean for you and your business. If you would like to discuss the issue, please do not hesitate to contact one of the team at JRW Hogg and Thorburn.
