GOV.UK Construction Industry Scheme (CIS) Explained
By the Construction Industry Scheme (CIS), contractors deduct 20% from registered and 30% from unregistered subcontractors as advance tax payments.
Key Takeaways
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Companies House has announced fee increases scheduled to take effect on May 1, 2024, impacting both new and existing UK companies.
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The Registrar has clarified that these adjustments are based on cost recovery to cover service delivery expenses without any added profit markup.
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The new fees are in response to the increased expenses associated with implementing their expanded powers, as outlined in the recently enacted Economic Crime and Corporate Transparency Act.
The recent price hike is expected to pose challenges for numerous entrepreneurs who are either running ventures or planning to establish businesses in the UK. Although incorporation expenses remain competitive compared to other European Union countries, the upward adjustment might influence perceptions regarding the ease of doing business in the UK. Notably, the UK currently holds the 8th position on the World Bank’s ‘Ease of Doing Business’ index as of 2020.
Yet, we welcome the trade-off of having more accurate company information on the register and reducing the chances of fraudsters using personal and company information.
According to GOV.UK Companies House has clarified that the fee adjustments are necessary to cover the costs associated with providing services and implementing new powers outlined in the Economic Crime and Corporate Transparency regulations.
Since our services include the government charge, we will review our pricing as of 1 May 2024, to align with the new Companies House service fee structure. We strongly recommend you submit all information before the 29th of April to avoid incurring increased costs.
Our commitment to delivering cost-effective company formation and filing services remains steadfast. Please get in touch if you have any queries. Our email is [email protected], and our telephone number is +44(0) 207 689 7888.
Companies House fees increasing from 1 May 2024
The fees reflect the significant shifts in the regulatory landscape. For instance, the updated pricing structure shows that digital processes remain competitive and streamlined. At the same time, paper-based filings witness notable increments, reflecting a broader trend toward digitalisation and efficiency enhancement within the legal framework.
These adjustments also indicate that administrative processes at Companies House will become more intricate as they implement the new law. Moreover, for businesses prioritising their bottom line, grasping the new regulations and ensuring compliance while managing costs effectively may pose a challenge. However, to assist you in staying ahead, our experts have curated comprehensive guides and articles to provide clarity and support during this transition.
Fast Fact
The implementation of the provisions of the Economic Crime and Corporate Transparency Act (ECCTA) is in phases.
Since March 2024, companies operating in the UK have been required to have a physical address, rather than just a PO box, as their registered office. Additionally, new companies must now provide a registered email address in their incorporation application, while existing companies must update this information in their subsequent confirmation statement filings.
Furthermore, the ECCTA has empowered both the Serious Fraud Office and the National Crime Agency with expanded authority. They can now compel businesses to provide information at the pre-investigation stage and on suspected money laundering activities.
A new fee structures will be implemented at Companies House from May 1st, 2024.
Furthermore, the “new failure to prevent fraud” offence has been introduced, which ensures large corporations are held accountable if they fail to prevent fraud by their employees or associated persons. However, the enforcement of this offence awaits the publication of statutory guidance on the “reasonable procedures” that organisations can implement as a defence.
These changes underscore the evolving regulatory landscape and the importance for businesses to stay informed and compliant.
An Overview of Key Fee Changes
Company incorporation and registration fees
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The incorporation fees have surged by over 300%, which is especially notable for digital and software channels.
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Annual confirmation statement fees have increased by over 50% across all channels, with the digital options remaining the most cost-effective.
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Various re-registration fees under different provisions of the Companies Act 2006 have been standardised, with significant increases for paper transactions.
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Fees related to share capital reduction, voluntary strike-off, administrative restoration, and applications for address confidentiality have undergone significant changes, including the introduction of same-day services for select transactions.
Overview of LLP fee changes
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The fee for registering an LLP has significantly increased, with the same-day registration fee rising from £30 to £78 (approx. 160% increase) and the standard registration fee from £40 to £50 (25% increase).
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Filing an LLP confirmation statement now costs £34 (digital), marking a 161.54% increase from the previous fee of £13.
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Standard LLP change-of-name transactions have increased by 200%, rising from £10 to £30 (paper filing), while same-day change-of-name fees have surged by approximately 177%, from £30 to £83 (digital).
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Voluntary strike-off fees for LLPs have increased by around 230%, from £10 to £33 (paper), while administrative restoration costs have surged by approximately 368% from £100 to £468.
Overseas Companies
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The registration fee for establishing a UK establishment of an overseas company has significantly increased from £20 to £71, representing an approximate 255% rise.
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Similarly, the fee for changing an overseas company’s corporate name has increased from £10 to £30, indicating a percentage increase of around 200%.
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The cost of registering annual accounts for overseas companies in the UK has also risen, from £20 to £62, marking a substantial increase of approximately 210%.
Limited Partnerships
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The registration fee for a limited partnership has increased by 255% for paper filings, rising from £20 to £71.
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For Scottish qualifying partnerships, the registration fee is consistent at £20 for paper filings and £71 for digital registrations.
UK Economic Interest Groupings (UKEIGs) and UK Societas
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The registration fee for establishing an EEIG (European Economic Interest Grouping) establishment has increased from £20 to £71 for digital filings.
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Similarly, the fee for changing the name of a UKEIG has increased from £10 to £30 for digital submissions.
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The cost for registering a charge for a UKEIG has also risen from £23 to £24 for paper filings.
Overseas Entities
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The registration fee for an overseas entity has significantly increased from £100 to £234 for digital filings.
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Likewise, the update fee has increased from £120 to £234 for digital submissions.
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The application fee for removal of an overseas entity has risen from £400 to £706, reflecting a substantial cost increase.
Community Interest Companies (CICs)
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The incorporation fee for CICs has increased from £20 to £65 for paper filings and from £12 to £86 for online filings.
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It costs £45 for paper filings to convert a limited company to a community interest company (CIC).
How the Price Changes Are Likely to Affect Businesses
As businesses navigate the increasingly complex regulatory landscape, the recent adjustments to Companies House service fees are set to significantly impact operational costs and compliance efforts.
These changes, spread across different transaction channels and service categories, show a clear move towards digitalisation and improving efficiency within regulatory frameworks. So, let’s dive into five key ways these fee modifications will affect UK businesses.
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Financial planning challenges— In light of the price adjustments, businesses may need to reassess their financial planning approaches due to the substantial fee increases across various company registration and filing services. Such planning may include budgeting for higher costs associated with incorporation, annual filings, and other regulatory requirements courtesy of the Economic Crime and Corporate Transparency Act 2023.
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Operational adjustments — The shift towards paper filings becoming significantly more expensive than digital channels could prompt businesses to reconsider their operational processes. Companies may need to embrace digital channels that are cost-effective and convenient.
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Compliance burdens – With increased fees and requirements for various regulatory filings, businesses face added compliance burdens, especially smaller enterprises with limited resources. These businesses may need extra time and staffing to meet deadlines and mitigate penalties. Moreover, the full implementation of the Economic Crimes and Corporate Transparency Act may intensify this burden as Companies House rolls out all the additional compliance obligations required by the new law.
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What if I Purchase a Formation Package From You Before May 1st but Submit It After May 1st?
If a package or service is purchased before April 30th the current (old) price will be honoured. However, if the details are submitted after the 30th of April 2024 at 4.00 pm then the submission will incur the additional charge by Companies House.
We strongly recommend you submit all the information before 29 April, including all the identity documentation, to avoid this new increased cost imposed by Companies House.
The Full List of New Companies House Fees from 1 May 2024
| Transaction | Old Fees | New Fees | ||||
|---|---|---|---|---|---|---|
|
Digital |
Software |
Paper |
Digital |
Software |
Paper |
|
| Company incorporation and registration fee | ||||||
|
Incorporation (standard) |
£12 |
£10 |
£40 |
£50 |
£50 |
£71 |
|
Incorporation (same day) |
– |
£30 |
– |
– |
£78 |
– |
|
Change of company name (standard) |
£8 |
£8 |
£10 |
£20 |
– |
£30 |
|
Change of name (same day) |
£30 |
£30 |
– |
£83 |
– |
– |
|
Re-registration under s1040 (Part 33 Chapter 1) CA06 |
– |
– |
£20 |
– |
– |
£71 |
|
Re-registration of a company under Part 7 CA06 |
– |
– |
£20 |
– |
– |
£71 |
|
Re-registration of a company under section 651 CA06 |
– |
– |
£20 |
– |
– |
£71 |
|
Confirmation statements |
£13 |
£13 |
£40 |
£34 |
£34 |
£62 |
|
Registration of a charge |
£15 |
£15 |
£23 |
£15 |
– |
£24 |
|
Voluntary strike off |
£8 |
– |
£10 |
£33 |
– |
£44 |
|
Reduction of share capital of a company under s644 CA06 (same day) |
£50 |
– |
– |
£136 |
– |
– |
|
Reduction of share capital of a company under s649 CA06 (same day) |
£50 |
– |
– |
£136 |
– |
– |
|
Reduction of share capital of a company under s644 CA06 (standard) |
– |
– |
£10 |
£33 |
– |
£33 |
|
Reduction of share capital of a company under s649 CA06 (same day) |
– |
– |
£10 |
£33 |
– |
£33 |
|
Administrative restoration |
– |
– |
£100 |
– |
– |
£468 |
|
Application to make an address unavailable for public inspection |
– |
– |
£32 |
– |
– |
£30 |
| Limited liability partnerships | ||||||
|
Registration of LLP (same day) |
£30 |
– |
– |
£78 |
– |
– |
|
Registration of LLP (standard) |
– |
£10 |
£40 |
£50 |
– |
£71 |
|
LLP confirmation statement |
£13 |
£13 |
£40 |
£62 |
– |
£34 |
|
LLP change of name (standard) |
– |
£8 |
£10 |
– |
– |
£30 |
|
LLP change of name (same day) |
– |
£30 |
– |
£83 |
– |
– |
|
Registration of a charge by an LLP |
£15 |
£15 |
£23 |
– |
£15 |
£24 |
|
LLP voluntary strike-off |
£8 |
– |
£10 |
£33 |
– |
£44 |
|
Administrative restoration of an LLP |
– |
– |
£100 |
– |
– |
£468 |
|
Application to make an address unavailable for public inspection |
– |
– |
£32 |
– |
– |
£30 |
| Overseas companies | ||||||
|
Registration of a UK establishment of an overseas company |
– |
– |
£20 |
– |
– |
£71 |
|
Change of corporate name or alternative name of an overseas company |
– |
– |
£10 |
– |
– |
£30 |
|
Registration of annual accounts |
– |
– |
£20 |
– |
– |
£62 |
| Limited partnerships | ||||||
|
Registration of a limited partnership |
– |
– |
£20 |
– |
– |
£71 |
| Scottish qualifying partnerships | ||||||
|
Registration of Scottish qualifying partnership |
– |
– |
£20 |
– |
– |
£71 |
|
“Annual fee” (registration of all relevant documents delivered during a relevant period payable on the registration of a confirmation statement) |
– |
– |
£17 |
£62 |
– |
£62 |
| UK Economic Interest Groupings and UK Societas | ||||||
|
Registration of an EEIG establishment |
– |
– |
£20 |
– |
– |
£71 |
|
Registration of change of name of a UKEIG |
– |
– |
£10 |
– |
– |
£30 |
|
Registration of a charge for a UKEIG |
– |
– |
£23 |
– |
– |
£24 |
|
Registration of public company by conversion of a UK Societas |
– |
– |
£20 |
– |
– |
£71 |
| Overseas entities
All filings for the Register of Overseas Entities must be digitally filed. The only exception is for those with protected status or a pending protection application. This group will need to pay a separate paper fee. |
||||||
|
Registration of an overseas entity |
– |
– |
£100 |
– |
– |
£234 |
|
Update fee |
– |
– |
£120 |
– |
– |
£234 |
|
Application for removal |
– |
– |
£400 |
– |
– |
£706 |
| Community interest companies | ||||||
|
Incorporation |
£12 |
£10 |
£20 |
£65 |
– |
£86 |
|
Limited company to a community interest company (conversion) |
– |
– |
– |
£45 |
– |
– |
Infographic: 6 Key Insights on Companies House Fee Increase
This was an insightful read. Wow! even more companies house fee increase. I will have to adjust my own business accordingly.