Increase in Companies House fees for UK Limited companies

Almost a year on from the hike to Companies House fees, limited companies are bracing themselves for another rise in overheads ahead of the employer National Insurance contributions (NICs) rate increase from 13.8% to 15%, while the minimum wage is also set to rise from 1st April.

The changes to the fees limited companies must pay to Companies House for various activities was criticised as ‘aggressive’ and ‘not understandable at this level’ by some experts last year—and this was ahead of the autumn budget.

What changed?

Tranche 1

The changes came in two tranches. The first came into effect from 4th March 2024 and related to security, imposing new rules on directors concerning the company’s registered office, a new lawful intent statement and registered email addresses. Although these new rules didn’t directly increase costs for limited companies, they did increase the admin burden, which has an indirect cost associated with it.

In summary, this first tranche of changes included:

Companies must have an ‘appropriate’ registered office address

An appropriate registered office address is defined as one where:

• Documents sent to the registered office should be expected to come to the attention of a person acting on behalf of the company
• Documents sent to the registered office can be recorded by an acknowledgement of delivery

This meant limited companies could no longer use a PO Box as a registered office address, instead requiring either a physical office space or virtual office service.

New statement of lawful purpose

New and existing limited companies are now required to confirm they’re formed for a lawful purpose, and confirm the company’s intended future activities are lawful.

Registered email address

For the first time, companies are also now required to provide Companies House with a registered email address. Company directors will have a responsibility to maintain an ‘appropriate’ registered email address in the same way as their registered office address.

Note that this email address will not be published on the public register.

Tranche 2

However, the second tranche of changes implemented last year did lead to an increase in costs for limited companies, with a number of significant hikes in the fees due to Companies House. Note that all of the changes came into effect from 1st May 2024.

The largest of these increases was to the Administrative Restoration fee—the process of restoring a previously dissolved company. This jumped by over 400%, rising from £100 to £468.

Changing a company name increased by 150%, up to £20 from £8, but the change that will affect all limited companies was the hike to the cost of submitting an annual Confirmation Statement.

Previously, the cost of submitting this annual statement was £13, but last May saw this rise by almost 300% to £34 per year. This increase alone is set to net Companies House more than £100 million per year, although the body states that it does “not make a profit on our fees”.

How to stay on top of Companies House changes and fees

As a small business owner you’re focused on servicing your customers, not staying on top of the minutiae of Companies House admin requirements. To ensure you’re aware of all your obligations and required fees, work with an experienced small business accountancy firm like Warr & Co.

Unlike larger accountancy firms that offer one-size-fits-all solutions for small businesses, we provide a tailored approach designed to suit your specific requirements. We’ve grown from a small to a medium-sized business ourselves, so we know what’s needed.

To find out more about our services for SMEs get in touch with our team today, or request your free, no obligation Small Business Consultation.