The Economic Crime and Corporate Transparency Act 2023 and related regulations give Companies House the tools to play an expanded role in tackling economic crime. One of these tools is new powers to impose a financial penalty on a person if satisfied, beyond reasonable doubt, that the person has engaged in conduct amounting to a “relevant offence” under the Companies Act 2006. 

The term “relevant offence” has a wide-ranging meaning and includes any offence under the Companies Act 2006, other than an offence under provisions which deal specifically with company secretaries (part 12), resolutions and meetings (part 13) and audit (part 16).

Those that ignore warnings from the Registrar could now face a financial penalty.

Companies House has recently published guidance on its approach to financial penalties, including how it will calculate penalties, the penalty amounts and the process involved. 

Where the Registrar suspects an offence has occurred, they will issue a warning notice setting out:

• the suspected offence,
• the period in which they will need to respond (this will be at least 28 days),
• how to respond, and
• a warning they may impose a financial penalty at the end of the period.

The penalties that can be issued will depend on the level of seriousness the Registrar places on the offence and whether there have been repeat offences, amongst other factors. Penalties may include:

• a fixed penalty,
• a daily rate penalty,
• a combination of a fixed penalty and daily rate penalty.

From the information that Companies House has provided, if the required action is taken in the period set out in the warning notice a penalty will not be imposed.  

For full details here is a link to the guidance - Companies House approach to financial penalties - GOV.UK