Companies House Introduce New Non-Compliance Penalties

May 2026 In: Legal Regulation

Overview of New Companies House Powers

On 27 September 2024, Companies House introduced new powers to enforce compliance with legal obligations for UK-registered companies in an effort to improve corporate transparency and tackle economic crime. These new measures are part of the Economic Crime and Corporate Transparency Act 2023 and authorise Companies House to issue financial penalties to both individuals and businesses who fail to meet statutory requirements, such as filing confirmation statements on time or maintaining accurate information about Persons of Significant Control (PSC).

Impact on Directors and Businesses

Non-compliance can now result in substantial financial penalties. Therefore, company directors and businesses must remain vigilant, ensuring company records are accurate and up-to-date. Under the new Companies House powers, repeat offenders face escalating consequences. These include higher fines, civil action, or in some cases, criminal prosecution. In addition to the financial cost, non-compliance can damage a company’s reputation and damage business operations.

Consequences for Non-Compliance

Failing to address penalties or comply with statutory requirements can lead to:

Additional daily-rate penalties for continued non-compliance.

Increased scrutiny from enforcement agencies.

Potential disqualification as a director.

Criminal charges for severe breaches.

In extreme cases, directors may face imprisonment. Therefore, it’s vital to adhere to legal obligations.

Warning Notice

When Companies House identifies a potential breach, a written warning notice will be issued. This document outlines the suspected offence, and the action required to correct it. Recipients have 28 days (starting the day after the notice date) to:

Take corrective action, such as filing overdue statements.

Provide an explanation or representation for consideration by Companies House.

Penalty Notice

If the recipient fails to address the warning notice adequately, Companies House may issue a penalty notice. This document will include:

The grounds for the penalty.

The type of penalty imposed (fixed, daily-rate, or both).

The calculation method for the penalty amount.

Instructions for payment or appeal.

Payment deadlines and consequences of non-payment.

How is a Penalty Notice Calculated?

Penalties are calculated based on the severity of the offence and the offender’s compliance history:

Minor offences: £250 to £1,000.

Serious offences: £500 to £1,500.

Very serious offences: £750 to £2,000.

Repeat offences within a five-year period will result in higher penalties and potentially lead to prosecution. If non-compliance continues, a combination of fixed and daily-rate penalties may be applied.

Can I Appeal a Penalty Notice?

Penalty notices can be appealed through the County Court in England. Grounds for appeal include:

Unlawfulness of the penalty.

Irrational or unreasonable decision-making.

Procedural impropriety or breach of natural justice.

Appeals must be lodged within the timeframe specified in the penalty notice. Ignoring the notice or missing the appeal deadline can lead to additional fines and legal action.

How to Keep Your Business Compliant?

Avoiding penalties requires proactive and continued compliance. To ensure your business stays compliant, it’s important to:

Stay organised by using reminders to track filing deadlines.

Regularly carry out audits and review and update company records.

Seeking legal guidance for any complex compliance issues.

Ensure employees understand compliance responsibilities through training.

Address Companies House warning notices quickly to avoid further escalation.

By implementing these measures, businesses can reduce the risk of non-compliance and ensure a transparent corporate environment.

To incorporate information about Cartwright King’s regulatory solicitors into this article, I’ll tailor a section that highlights their expertise in helping businesses navigate compliance with the new Companies House powers. Here’s the revised version:

How Cartwright King’s Regulatory Lawyers Can Help

Understanding and meeting the new compliance rules from Companies House can be difficult, with serious risks like fines, harm to your reputation, and even criminal charges.

Cartwright King’s team of regulatory solicitors are experts in corporate compliance, providing tailored legal advice and robust representation.

Our regulatory solicitors can assist with, addressing warning notices, appealing penalties, carrying out compliance audits, providing legal guidance and support to directors and businesses and defending directors and businesses in civil and criminal proceedings.

For more information, contact our regulatory team to discuss how we can assist your business.