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United Kingdom – New offences and penalties
Companies House has published new guidance on the United Kingdom’s approach to financial penalties and enforcement.
This follows the adoption of the Economic Crime and Corporate Transparency Act, empowering the Registrar to impost direct penalties for a wider range of offences under the Companies Act.
From now on Companies House may:
- provide written information and advice to help companies to be compliant
- issue financial penalties
- pursue a civil case
- pursue a criminal prosecution
- refer a case to other agencies
Financial Penalty Amounts
The Registrar can impose financial penalties if it is proven beyond reasonable doubt that an individual or company has committed a relevant offence under section 1132A of the Companies Act 2006.
These penalties can take the form of fixed amounts, daily rate penalties for ongoing offences, or a combination of both, depending on the severity of the offence and past conduct.
To set the penalty amount, Companies House considers the severity of the offence and whether any past offences have been committed within the last five years.
Companies House will also assess culpability, harm caused, and mitigating or aggravating factors.
See here for detailed information on Companies House approach to financial penalties.
Warning notices
If a suspected offence is identified, a warning notice is issued to the concerned party, outlining the grounds for suspicion and allowing at least 28 days to submit written representations.
If compliance occurs within this period, no financial penalty is imposed.
Companies House retains the discretion to change or revoke penalties based on case-specific factors. For example, filing a missed confirmation statement within 28 days of receiving a warning notice prevents penalties from being applied.
See here for detailed information on Companies House enforcement policy.
