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Corporate Transparency And Register Reform

Companies House and the Department for Business, Energy & Industrial Strategy are implementing reforms under the Economic Crime and Corporate Transparency Act 2022 to strengthen beneficial ownership transparency, reduce company register fraud, and improve data sharing with HMRC and other agencies. The reforms address longstanding gaps in verification powers and enforcement, with particular focus on tackling vacant property ownership opacity and reducing the estimated 5–20% of fraudulent UK company registrations. Implementation includes a multi-year integration programme between Companies House and HMRC systems.

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2026

1 event
11 Feb 2026 | Committee report linked

Stronger measures are needed to tackle long-term vacancies and improve transparency in high street property ownership. Beneficial ownership registers were supposed to make it easier for local authorities and communities to bring vacant properties back into use. It is clear, however, that these measures are currently not working as intended. (Conclusion, Paragraph 176)

Stronger measures are needed to tackle long-term vacancies and improve transparency in high street property ownership. Beneficial ownership registers were supposed to make it easier for local authorities and communities to bring vacant properties back into use. It is clear, …

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2025

8 events
12 Feb 2025 | Committee report linked

HMRC, Companies House and the Insolvency Service have failed to work collaboratively, missing opportunities to increase the tax take. Due to the fraudulent use of UK company registrations, contrived insolvencies and phoenixism to evade tax, HMRC, Companies House and the Insolvency Service must work closely to tackle these threats together. The introduction of ECCTA presents opportunities for all three organisations to work more closely. At Autumn Budget 2024 the government announced it would ...

HMRC, Companies House and the Insolvency Service have failed to work collaboratively, missing opportunities to increase the tax take. Due to the fraudulent use of UK company registrations, contrived insolvencies and phoenixism to evade tax, HMRC, Companies House and the …

▤ View document · ↗ GOV.UK
12 Feb 2025 | Committee report linked

HMRC’s VAT registrations processes are far too open to abuse, and it is not exploring options to tighten controls sufficiently. Checking whether businesses are genuinely UK established is important for VAT because online marketplaces are liable for VAT from overseas businesses selling on their platforms but not for UK established businesses. HMRC does not routinely check addresses when businesses register for VAT, but says it has confidence that its risk–based checks, combined with due dilige...

HMRC’s VAT registrations processes are far too open to abuse, and it is not exploring options to tighten controls sufficiently. Checking whether businesses are genuinely UK established is important for VAT because online marketplaces are liable for VAT from overseas …

▤ View document · ↗ GOV.UK
12 Feb 2025 | Committee report linked

Companies House said that, prior to the introduction of the Economic Crime and Corporate Transparency Act (ECCTA), it estimated that 5% of UK registered companies were fraudulent. It explained that external commentators had estimated the figure could be as high as 20%, and that the true value likely lies somewhere in between.19 HMRC told us that individuals getting on the company register who should not be there, or with the incorrect classification, creates a tax risk.20 In its Strategic Int...

Companies House said that, prior to the introduction of the Economic Crime and Corporate Transparency Act (ECCTA), it estimated that 5% of UK registered companies were fraudulent. It explained that external commentators had estimated the figure could be as high …

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12 Feb 2025 | Committee report linked

At Autumn Budget 2024, the government announced that it was increasing collaboration between HMRC, Companies House and the Insolvency Service to tackle phoenixism.40 The Insolvency Service told us that, since the publication of the National Audit Office’s report, it had started an action group alongside Companies House and HMRC to look at phoenixism.41 All three organisations said that they were committed to increasing collaboration between them to tackle phoenixism and HMRC told us the organ...

At Autumn Budget 2024, the government announced that it was increasing collaboration between HMRC, Companies House and the Insolvency Service to tackle phoenixism.40 The Insolvency Service told us that, since the publication of the National Audit Office’s report, it had …

▤ View document · ↗ GOV.UK
12 Feb 2025 | Committee report linked

HMRC and Companies House have explored opportunities from Companies House’s new powers, including a single streamlined system for registering and filing company, Corporation Tax and VAT documentation which would provide more assurance over the addresses of registered businesses. HMRC and Companies House estimated in early 2024 that closer integration of systems would take between five and 10 years to implement.43 HMRC and Companies House told us they are regularly meeting about this programme...

HMRC and Companies House have explored opportunities from Companies House’s new powers, including a single streamlined system for registering and filing company, Corporation Tax and VAT documentation which would provide more assurance over the addresses of registered businesses. HMRC and …

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12 Feb 2025 | Committee report linked

The identity checks that Companies House is now responsible for are not intended to verify the address or place of business.57 Companies House told us that address verification, which it says would be an additional burden on businesses, is not part of ECCTA. It said there was a balance between preventing economic crime and creating an environment for economic growth by minimising burdens on businesses.58 Companies House explained that it will still be possible for individuals to falsely regis...

The identity checks that Companies House is now responsible for are not intended to verify the address or place of business.57 Companies House told us that address verification, which it says would be an additional burden on businesses, is not …

▤ View document · ↗ GOV.UK
12 Feb 2025 | Committee report linked

When businesses register for VAT, HMRC does not verify whether they are UK–established in most cases.65 HMRC explained all VAT registrations are risk assessed and that just over 50% of VAT registrations require further checks which can, but do not routinely, include address validation.66 HMRC told us that is has confidence that its VAT register, combined with due diligence rules for online marketplaces, are working well, although it acknowledged that overseas retailers selling through online ...

When businesses register for VAT, HMRC does not verify whether they are UK–established in most cases.65 HMRC explained all VAT registrations are risk assessed and that just over 50% of VAT registrations require further checks which can, but do not …

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12 Feb 2025 | Written evidence linked

Until April 2024, Companies House had limited powers to check the validity of information provided to it by registered companies. It also had limited enforcement and intelligence–gathering powers, and limited scope to share data with other public bodies. The lack of checks meant it was easy for fraudsters to set up legitimate UK companies for illegitimate means.48 Written evidence we received from RAVAS said that flaws in the verification systems operated by Companies House and HMRC have enab...

Until April 2024, Companies House had limited powers to check the validity of information provided to it by registered companies. It also had limited enforcement and intelligence–gathering powers, and limited scope to share data with other public bodies. The lack …

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2024

1 event
28 Feb 2024 | Written evidence linked

HMRC highlighted a more widespread problem with bogus registrations, where companies hijack taxpayers’ identities in an attempt to defraud HMRC.35 We have received written evidence on the time it takes for HMRC to resolve these cases and the distress this causes to those concerned.36 HMRC told us that Companies House has recently acquired new powers that will allow it to challenge information before it goes on its register as well as remove information. HMRC said that these changes will allow...

HMRC highlighted a more widespread problem with bogus registrations, where companies hijack taxpayers’ identities in an attempt to defraud HMRC.35 We have received written evidence on the time it takes for HMRC to resolve these cases and the distress this …

▤ View document · ↗ GOV.UK

2023

8 events
10 Nov 2023 | Committee report linked

We recommend that the Government: a) Offers assistance to each of the Central Asian countries in building their domestic capacity to tackle corruption and money laundering as a contribution to their economic development. b) Encourages the National Crime Agency to send agents to liaise with Central Asian governments in developing cooperation on Unexplained Wealth Orders (UWO) and on bringing back stolen public assets from the UK. c) Ensures that Oversees Territory governments comply with the e...

We recommend that the Government: a) Offers assistance to each of the Central Asian countries in building their domestic capacity to tackle corruption and money laundering as a contribution to their economic development. b) Encourages the National Crime Agency to …

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26 Apr 2023 | Committee report linked

Confidence in the Companies Register is undermined by errors and inaccuracies. Companies House, an executive agency of the Department, maintains the Register of Companies for England and Wales. The size of the register is growing, which the Department considers reflects international trends and entrepreneurial activity. However, false statements, fake entries, errors and inaccuracies (such as fictional company directors, or individuals named without their consent) can be used to commit crime,...

Confidence in the Companies Register is undermined by errors and inaccuracies. Companies House, an executive agency of the Department, maintains the Register of Companies for England and Wales. The size of the register is growing, which the Department considers reflects …

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26 Apr 2023 | Committee report linked

The Companies House annual report and accounts continues to show an increase in the number of the companies registered. The Department considers this to be a reflection of wider international trends and increased entrepreneurial activity.41 However, the rise in registrations also increases the likelihood that the Companies House register contains fake entries.42 The Department acknowledges Companies House needs to manage this and is introducing greater powers through the Economic Crime and Co...

The Companies House annual report and accounts continues to show an increase in the number of the companies registered. The Department considers this to be a reflection of wider international trends and increased entrepreneurial activity.41 However, the rise in registrations …

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26 Apr 2023 | Committee report linked

It has been an offence since 2009 to make a false return to Companies House, yet to date there is a record of just one conviction for this offence, in 2018. The Department was unable to confirm the number of prosecutions or convictions made under these existing powers.44 The Department was also unable to confirm why, despite the continued rise in the number of companies registered and the increasing likelihood that some of these registrations are being used to commit fraud against businesses ...

It has been an offence since 2009 to make a false return to Companies House, yet to date there is a record of just one conviction for this offence, in 2018. The Department was unable to confirm the number of …

▤ View document · ↗ GOV.UK
8 Mar 2023 | Committee report linked

In July 2022, HM Revenue & Customs (HMRC) estimated that £4.5 billion had been paid to claimants as a result of error and fraud within the two schemes. It told us that this remained its best estimate of the extent of error and fraud within the two schemes.21 In July 2022, HMRC also estimated that most error and fraud arose within CJRS, equivalent to £3.5 billion. Of the £2.4 billion lost to fraud across the two schemes, the large majority was due to opportunistic fraud rather than organised c...

In July 2022, HM Revenue & Customs (HMRC) estimated that £4.5 billion had been paid to claimants as a result of error and fraud within the two schemes. It told us that this remained its best estimate of the extent …

▤ View document · ↗ GOV.UK
11 Jan 2023 | Committee report linked

We are concerned that HMRC may be lagging behind other established tax authorities in preventing fraudulent VAT registrations. HMRC is constantly changing its processes to prevent criminals from exploiting the tax system. VAT is particularly susceptible to fraud and criminality as it can involve HMRC repaying large amounts to taxpayers. We raised concerns about a case where a criminal used a legitimate company’s details to apply for a VAT registration number and make fraudulent VAT repayment ...

We are concerned that HMRC may be lagging behind other established tax authorities in preventing fraudulent VAT registrations. HMRC is constantly changing its processes to prevent criminals from exploiting the tax system. VAT is particularly susceptible to fraud and criminality …

▤ View document · ↗ GOV.UK
11 Jan 2023 | Committee report linked

We asked HMRC about a case where a criminal used a legitimate company’s details, apparently successfully, to apply for a VAT registration number and make fraudulent VAT 13 Qq 14, 33, 43–45 14 Qq 80–83, 92–95 15 Q 84 16 Qq 89–91, 113 12 HMRC performance in 2021–22 repayment claims. This fraud was only picked up when the legitimate company received communication from a debt collection agency requesting payment. We raised concerns that safeguards adopted in other countries appear more effective ...

We asked HMRC about a case where a criminal used a legitimate company’s details, apparently successfully, to apply for a VAT registration number and make fraudulent VAT 13 Qq 14, 33, 43–45 14 Qq 80–83, 92–95 15 Q 84 16 …

▤ View document · ↗ GOV.UK
11 Jan 2023 | Committee report linked

HMRC told us that VAT is a particular target for organised crime as it can involve HMRC repaying large amounts to taxpayers. HMRC described it as an ‘arms race’, with HMRC constantly changing its processes and risk assessment to prevent criminals from abusing the tax registration process, and criminals constantly finding new ways around them. HMRC felt it was effective at identifying these attempts at fraud early and adjusting to them. It said it needs to balance making the system secure with...

HMRC told us that VAT is a particular target for organised crime as it can involve HMRC repaying large amounts to taxpayers. HMRC described it as an ‘arms race’, with HMRC constantly changing its processes and risk assessment to prevent …

▤ View document · ↗ GOV.UK

2022

8 events
30 Jun 2022 | Committee report linked

The Committee underlines the imperative of implementing beneficial ownership rules and robust reform of Companies House, including new powers for the company registrar to verify information to ensure accuracy as well as discretionary powers to remove corporate entities from the register for wrongdoing and ensure robust identity verification requirements. It is important that beneficial ownership registers are as transparent as possible.

The Committee underlines the imperative of implementing beneficial ownership rules and robust reform of Companies House, including new powers for the company registrar to verify information to ensure accuracy as well as discretionary powers to remove corporate entities from the …

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30 Jun 2022 | Committee report linked

Greater public access to information about beneficial ownership would improve private sector compliance with sanctions, pre-empt sanctions evasion and improve transparency about designated individuals. If the Government and Overseas Territories had achieved this by December 2020, as originally expected, these public The cost of complacency: illicit finance and the war in kraine 25 registers would have been in place before sanctions on Russia were imposed in response to the invasion of Ukraine...

Greater public access to information about beneficial ownership would improve private sector compliance with sanctions, pre-empt sanctions evasion and improve transparency about designated individuals. If the Government and Overseas Territories had achieved this by December 2020, as originally expec

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18 May 2022 | Committee report linked

Registrations of new companies on Companies House increased sharply during 2020–21. During the period 2015–16 to 2019–20, annual new company registrations averaged 640,000. By comparison, in 2020–21 there were more than 810,000, making new company registrations in that year more than 20% higher than in any of the preceding five.51 Companies House does not validate information provided to them when a new company is registered, or do checks to confirm a person with a role in a company exists.52...

Registrations of new companies on Companies House increased sharply during 2020–21. During the period 2015–16 to 2019–20, annual new company registrations averaged 640,000. By comparison, in 2020–21 there were more than 810,000, making new company registrations in that year more …

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26 Mar 2022 | Committee report linked

Rogue companies are exploiting the pandemic to profit at the expense of taxpayers. We are concerned that rogue firms have been able to exploit temporary restrictions on insolvency action and the availability of covid support grants and loans to embezzle large sums during the pandemic. In particular, there is an increased risk from ‘phoenix’ companies (whereby individuals continue the same trade through a series of companies that are wound up, usually to avoid paying debts). While the NAO foun...

Rogue companies are exploiting the pandemic to profit at the expense of taxpayers. We are concerned that rogue firms have been able to exploit temporary restrictions on insolvency action and the availability of covid support grants and loans to embezzle …

▤ View document · ↗ GOV.UK
26 Mar 2022 | Committee report linked

The pandemic has created a risk that some rogue firms have been able to embezzle large sums of money during the pandemic. There is a particular risk from so-called ‘phoenix’ companies, referring to the practice of individuals continuing the same trade after winding up a company, usually to avoid paying debts.58 The pandemic has presented companies with the opportunity to borrow more money from government through schemes such as Bounce Back Loans or Coronavirus Business Interruption Loans.59 A...

The pandemic has created a risk that some rogue firms have been able to embezzle large sums of money during the pandemic. There is a particular risk from so-called ‘phoenix’ companies, referring to the practice of individuals continuing the same …

▤ View document · ↗ GOV.UK
2 Feb 2022 | Committee report linked

The Government should supply us with details of the project milestones for the Companies House transformation programme, together with an annual progress report.

The Government should supply us with details of the project milestones for the Companies House transformation programme, together with an annual progress report. Type: recommendation | Number: 52 | Paragraph: 232 | Response status: not_addressed Government response: The government recognises …

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2 Feb 2022 | Committee report linked

The Government should significantly increase the costs of company and Limited Liability Partnership incorporation, including Scottish Limited Partnerships, and should review other Companies House fees to bring them closer to international standards. A fee of £100 for company formation would not deter genuine entrepreneurs, and would raise significant additional funding for Companies House and for the fight against economic crime. It would also help compensate for the wider costs on the public...

The Government should significantly increase the costs of company and Limited Liability Partnership incorporation, including Scottish Limited Partnerships, and should review other Companies House fees to bring them closer to international standards. A fee of £100 for company formation would …

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2021

2 events
30 Jun 2021 | Written evidence linked

In written evidence Cifas, the UK’s largest cross-sector fraud sharing organisation, told us there should be transparency around the businesses that have been in receipt of COVID-19 support scheme funds, and, in its submission to us, the Fraud Advisory Panel agreed that transparency around fraud and error is “imperative” to maintain public trust and confidence.59 The Counter Fraud Function has said it wants to help ensure the UK is the most transparent government globally in how it deals with...

In written evidence Cifas, the UK’s largest cross-sector fraud sharing organisation, told us there should be transparency around the businesses that have been in receipt of COVID-19 support scheme funds, and, in its submission to us, the Fraud Advisory Panel …

▤ View document · ↗ GOV.UK
20 Jan 2021 | Committee report linked

We asked HMRC about it plans to tackle fraud and error in the COVID-19 support schemes while ensuring the timely payments of support to those in need. HMRC explained that it has to strike a balance between helping as many people as it could, as fast as possible, while also managing the risks of fraud and error. HMRC mitigated some of the risks at the design stage of the schemes by making any support contingent on the data it already held about employers, employees and the self-employed. It wa...

We asked HMRC about it plans to tackle fraud and error in the COVID-19 support schemes while ensuring the timely payments of support to those in need. HMRC explained that it has to strike a balance between helping as many …

▤ View document · ↗ GOV.UK