The UK Economic Crime Act has become an instrumental legislative tool in the fight against economic crime and in enhancing corporate transparency. This article provides a comprehensive overview of this important act, its implications, and the consequent changes in the corporate world.
The UK Economic Crime Act was conceived as a response to the rising economic crimes and the need for increased corporate transparency. The Act incorporates several measures that aim to deter economic crimes and foster a culture of openness in corporate affairs.
Navigating the Act: Key Features
The Act has introduced several measures that are designed to enhance corporate transparency and deter economic crime. These measures can be broadly categorized into the following sections:
1. Shareholder Identity Verification
The Act has introduced stringent measures to verify the identity of shareholders. This step is a significant move towards increasing transparency in corporate affairs.
2. Role and Powers of the Registrar of Companies
The Act has bolstered the role and powers of the Registrar of Companies. The Registrar now plays a more active role in ensuring compliance with the Act.
3. Provisions Pertaining to Company Names
The Act has also introduced provisions that regulate company names. These provisions aim to prevent the misuse of company names.
4. Identity Verification of Authorised Corporate Service Providers
The Act has introduced measures for the identity verification of authorised corporate service providers. This step is aimed at preventing the abuse of personal information.
5. Companies House Fees
The Act also provides for an increase in Companies House fees. This increase will fund the ongoing operations and activities related to the Act.
6. Impact on Limited Liability Partnerships
The Act also has provisions that impact limited liability partnerships. These provisions aim to prevent the misuse of such partnerships.
7. Civil Sanctions and Offences
The Act has also introduced civil sanctions and offences related to the reform of Companies House and limited partnerships.
8. Provision for Beneficial Ownership
The Act also provides for the disclosure of beneficial ownership. This provision aims to enhance transparency in corporate affairs.
How do these changes affect you
The UK Economic Crime Act has significant implications for the corporate world. Let’s delve into some of these implications:
Increase in Companies House Fees
One of the most immediate implications of the Act is the increase in Companies House fees. These fees are set to increase from May 1, 2024. The revised fees structure is as follows:
| Service – LTD | Digital/Software | Paper Fee |
|---|---|---|
| Incorporation | £50 | £71 |
| Confirmation Statement | £34 | £62 |
| Change of Name | £20 | £30 |
| Closing Down Protection/Voluntary Strike Off | £33 | £44 |
Changes in Accounts Filing
The Act has introduced changes in the way accounts are filed. Now, all businesses will be required to file their profit and loss statement along with their balance sheet. This step will bring about greater transparency in the financial affairs of companies.
Changes in Confirmation Statement
The Act has also brought about changes in the confirmation statement. Companies will now be required to provide a registered email address to Companies House.
New Rules for Registered Address
The Act also introduces new rules for the registered address of companies. Under these rules, companies are expected to have an ‘appropriate address’ as their registered office at all times.
Impact on Taxation
The UK Economic Crime Act also has implications on taxation. With the introduction of the Act, organisations can potentially claim marginal relief if their taxable profits are between £50,000 and £250,000.
Impact on Research & Development
The Act has also introduced changes to Research and Development claims. The enhancement rate for qualifying expenditure has been reduced from 130% to 86%. The SME Tax credit for loss-making companies has been reduced from 14.5% to 10%.
Conclusion
The UK Economic Crime Act is a significant step towards combating economic crime and enhancing corporate transparency. Its provisions are far-reaching and affect every facet of corporate affairs. As such, it is essential for businesses to understand the Act and its implications. This understanding will not only help them comply with the Act but also leverage its provisions to their advantage.
If you have any questions, please let us contact us