Tag Archive for: legislation

Economic Crime and Corporate Transparency Act 2023 Update

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The Economic Crime and Corporate Transparency Act 2023 is one of the most significant updates to UK company law in many years. It aims to reduce economic crime, improve transparency, and strengthen the accuracy of information held at Companies House.

These changes affect how companies are formed, how records are kept, how individuals are verified, and how fraud is handled. Some elements have already taken effect. Others will continue to roll out through 2026.

Below is a practical overview of what the Economic Crime and Corporate Transparency Act 2023 covers and what UK businesses need to prepare for.

Companies House Reform

Reform of Companies House is central to the Act. It moved from a passive register to a more active regulator with stronger powers. As of November 2025, several significant changes have come into force.

Mandatory Identity Verification

From November 2025, all new and existing directors, People with Significant Control (PSCs), and individuals who file documents must verify their identity with Companies House.

Verification is now a legal requirement and will become standard for maintaining a compliant company record. Businesses should ensure all relevant individuals complete verification promptly.

Removal of Certain Company Registers

Companies no longer need to maintain:

  • The register of directors
  • The register of directors’ residential addresses
  • The register of secretaries

Companies House now holds the complete and official version of these records. Filing inaccurate information can lead to unlimited fines, making clean, accurate data more critical than ever.

Stronger Powers to Challenge Information

Companies House now has greater power to:

  • Reject misleading company names
  • Require companies to change names
  • Query filings
  • Remove information that appears false or suspicious

These powers are intended to prevent fraudulent companies from being used for criminal purposes.

Lawful Purpose Confirmation

New companies must confirm that they are being formed for a lawful purpose. They must repeat this statement each year as part of their annual filing. This requirement aims to discourage abusive company formations and improve accountability.

Failure to Prevent Fraud Offence

The Act introduced a new offence, failure to prevent fraud, which took effect on 1 September 2025.

Large organisations are liable if an employee or associated person commits fraud that benefits the organisation, and no reasonable prevention measures were in place.

It applies to organisations meeting at least two of the following criteria:

  • More than 250 employees
  • More than £36 million turnover
  • More than £18 million in assets

Although this focuses on larger businesses, smaller companies may still be affected through new due diligence checks imposed by clients or suppliers who must meet higher fraud-prevention standards.

Expanded Corporate Liability

The Act expands the identification doctrine. Liability can now be attributed to senior managers, not just board-level directors. This means a broader group of individuals can trigger corporate accountability when criminal behaviour occurs.

This change makes it easier to prosecute larger companies when wrongdoing involves senior decision-makers.

Cryptoasset Powers

The Act includes new powers allowing law enforcement to seize and recover cryptoassets suspected of being linked to criminal activity.

These measures support investigations into money laundering, fraud, and other offences that use digital currencies. While this primarily falls to law enforcement, it reflects a broader focus on accurate financial trails and transparent reporting.

Information Sharing Between Institutions

The Act introduces measures that allow financial institutions to share information more effectively to prevent and detect economic crime.

This change addresses delays caused by limited data sharing among banks, accountants, and other regulated firms. Faster information exchange should improve the detection of suspicious activity.

Limited Partnerships Reform

Limited partnerships have been subject to misuse in the past. Reforms now require:

  • Stricter registration processes
  • Verification of partners
  • Annual confirmation statements

These measures increase transparency and reduce opportunities for criminal exploitation.

Future Changes

Some changes have been confirmed for the future, but do not yet have fixed start dates. These include:

  • Mandatory identity verification for corporate directors and corporate members
  • A complete shareholder list that companies will need to file with Companies House

Businesses should expect continued updates through 2026 as these provisions roll out.

What These Changes Mean

The Act places greater emphasis on identity checks, data accuracy, and transparent reporting. Businesses should expect closer scrutiny from Companies House and should ensure that:

  • All directors and PSCs are verified
  • Company filings match the real structure and operations of the business
  • Annual records remain up to date and accurate
  • Fraud prevention processes are documented and in place

Good bookkeeping is central to substantial compliance. Clean records, accurate filings, and organised documentation make it easier to meet the new legal requirements. Rosemary Bookkeeping can help you maintain precise, reliable records so you stay compliant and avoid errors that could trigger intervention from Companies House.

Need Help Navigating the Changes?

These reforms affect record keeping, company maintenance, and verification processes. If you want support keeping your information up to date, your local Rosemary Bookkeeper can help maintain compliant records and prepare your filings.

Find your nearest Rosemary Bookkeeper today.

Do I need a Bookkeeper?

It’s a question often asked. Small businesses the world over find themselves struggling with their books, but don’t want any extra expenses. So; is it really necessary to outsource your bookkeeping?

The simple answer is: there is no simple answer. It really does depend on you, your time, and your business. You have a lot of options, including purchasing accounting software to make it easier for yourself. But even with the help of these tactics, doing your own books can be daunting, tricky and time consuming.

The question you have to ask yourself is whether it is easy for you to do your own bookkeeping.

Naturally, circumstances differ from business to business. In many cases, a sole trader or small business will start off doing their own bookkeeping and manage to keep on top of it. The problem is, when you start to get busier, time is precious, and you need to decide how productive it is to be spending your time sorting out your receipts and invoices rather than concentrating on the activities that drive your business.

Bookkeeping is also one of those tasks people tend to put off. Especially when trying to focus on everything else involved in running a business, it is easy to fall into the trap of putting it in the diary or setting time aside every month, and then having something come along that then takes precedence. It’s about priorities, and bookkeeping – more often than not – falls into that dreaded “to do list”.

This tends to cause small business owners much more stress in the long run. All of a sudden, that small pile of receipts and invoices can develop in to a messy pile of paperwork that will take hours to sort through.

Ultimately, it comes down to a personal decision about productivity. If you spent the time working on your business instead of doing your own books, what would that translate to in monetary terms? If it’s likely to be more than the fee you will pay a Bookkeeper then the answer to your question is yes, you probably do need a Bookkeeper.

At Rosemary Bookkeeping, we aim to take the fear out of your bookkeeping. Outsourcing is a very realistic option for business owners so don’t be scared. If you are unsure, we are more than happy to come and help you find out about making tax digital, or simply conduct a 1-2-1 health check to give you the opportunity to decide for yourself if you think you could benefit. To get in touch with a professional and expert Bookkeeper in your local area with no obligation, contact your local Rosemary Bookkeeper today.

What is IR35?

Everything you need to know to get your head around the new off-payroll working legislation ahead of the new financial year.

The Intermediaries Legislation (or IR35) for off-payroll working came into full force in the private sector last year. However, it can be difficult to see the full effects of a new legislation after so little time has passed. So, as we approach a year of IR35 in the private sector, we’ve put together a blog post of everything you need to know about the legislation to get prepared for the new financial year in March.

On April 6th 2022, at the beginning of the 2022/23 financial year, HMRC will be fully integrating IR35 in the UK’s private sector. This date signals the end of a ‘soft-landing’ period that had allowed affected businesses a grace period over the last 12 months in which HMRC did not charge penalties for non-compliance.

What are the new rules?

The new legislation is designed to create a more level playing field by taxing contractors at a similar rate to employment in order to prevent them from working as ‘disguised employees.In the private sector, this means that the onus to determining IR35 status no longer lies with the contractor, and instead with the entity that pays the contractor. Therefore, this is now a tax burden on all client businesses in the private sector that engage contract workers – with the notable exception of small companies.

From April 2021, if a client decides that IR35 does apply, the contractor is taxed as if they were an employee. However, because the contactor’s employment status does not change, they don’t receive the rights and perks of said employment.

Who do they apply to?

According to HMRC, the new off-payroll working rules can apply to workers (also sometimes referred to as a contractor) who provides services through their own limited company – or another type of intermediary – to a client. In these cases, the intermediary is usually the worker’s own personal service company. However, it can also be a partnership or an individual. Essentially, the legislation applies to all contractors that do not meet HMRC’s definition of self-employed.

Therefore, you may be affected if you are:

• A worker who provides services through their intermediary
• An agency that provides workers’ services through an intermediary
• A client who receives services from such workers through their intermediary

To qualify for exemption as a small business under IR35 regulations, a company has to meet the following criteria:

• An annual turnover of less than £10.2 million
• A balance sheet total of less than £5.1 million
• Fewer than 50 employees

In cases where a contractor is working for a smaller business, it remains the contractor’s responsibility to decide their employment status.

You can also use HRMC’s Check Employment Status for Tax (CEST) tool to find out if you or your worker, should be classed as employed or self-employed for tax purposes.  

Get prepared for the new tax year by leaving your books to Rosemary Bookkeeping. Enlisting the help of a bookkeeper means receiving expert support from informed professionals, dispelling any confusion on tricky matters like IR35, and having more time to focus on the things that matter most to you. Click here to find your nearest Rosemary Bookkeeping business, and find more about our services today.