Companies House Enforcement Action - What to Do
Receiving enforcement action from Companies House can be worrying, particularly if it relates to identity verification, overdue filings or inaccurate company information. The important thing is to understand what Companies House is asking you to do and respond promptly rather than ignoring the notice.
Companies House has a range of enforcement powers, including financial penalties, court action, criminal prosecution and, in serious cases, action seeking director disqualification or company strike-off.
Why Would Companies House Take Enforcement Action?
Companies House may take action when a company or individual fails to meet a legal requirement. Common issues include:
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Failing to complete mandatory identity verification
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Failing to file a confirmation statement
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Late or missing company accounts
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Providing inaccurate or misleading information
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Failing to respond to Companies House notices
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Failing to maintain an appropriate registered office
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Repeated or serious filing non-compliance
The seriousness of the response can depend on the nature and history of the non-compliance.
What Should You Do First?
Read the enforcement notice carefully and identify:
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The specific requirement you have failed to meet
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The deadline for taking action
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Whether a financial penalty has already been imposed
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Whether you can make a representation
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What evidence or documents Companies House requires
Do not assume that paying a penalty automatically resolves the underlying compliance problem. In many cases, the original filing or verification requirement must still be completed.
Companies House Identity Verification Enforcement
If the enforcement action relates to director identity verification, complete the required verification as soon as possible.
A director who fails to comply with mandatory identity verification requirements can be in breach of the legislation, and the company may also be in breach.
If you have been unable to verify through the direct route, an Authorised Corporate Service Provider may be able to verify your identity where appropriate.
What If You Receive a Financial Penalty Warning?
A financial penalty warning gives you an opportunity to take action or make a representation before a penalty is imposed.
Under the current Companies House approach, the warning notice generally provides at least 28 days for representations. Where the underlying requirement is completed within the applicable period, a financial penalty may be avoided in circumstances covered by the guidance.
If you believe the enforcement action is incorrect, provide Companies House with a clear explanation and supporting information within the stated deadline.
What If You Already Have a Penalty?
Check the penalty notice carefully and deal with both the payment requirement and the underlying breach.
If you do not pay a financial penalty by the required date, Companies House may pursue recovery through a debt recovery agency or the courts.
Continuing not to comply can also lead to further penalties and more serious enforcement action.
Can Companies House Strike Off the Company?
Yes. Companies House can begin strike-off proceedings in appropriate circumstances, including where a company repeatedly fails to meet its filing obligations.
If you receive a strike-off notice, act immediately. Bringing the company's records up to date and responding appropriately may prevent dissolution where the legal requirements are satisfied.
If the company has already been dissolved, restoration may be possible in certain circumstances.
Fraser Bond Can Help
Fraser Bond can assist companies and directors dealing with Companies House enforcement action, identity verification problems, overdue filings, penalties and compliance notices.
Support can include reviewing the enforcement issue, identifying the outstanding requirements, helping resolve verification problems and assisting with company filing compliance.
If you have received an enforcement notice from Companies House, acting before the deadline is usually the safest approach. Ignoring the notice can allow the situation to escalate into additional penalties or more serious enforcement action.
