Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Companies House collects just £1,250 in fines despite new powers to tackle fraud

by April 7, 2025
April 7, 2025
Companies House collects just £1,250 in fines despite new powers to tackle fraud

Companies House has collected just £1,250 in fines despite being handed new powers to tackle fraud and corporate abuse, prompting concern from MPs over the UK’s commitment to cracking down on economic crime.

The agency, which maintains the official register of companies in the UK, was granted new enforcement powers last autumn as part of long-awaited reforms designed to prevent fraudulent business registrations. However, in response to a parliamentary question from Liam Byrne MP, chair of the Business and Trade Select Committee, it was revealed that just 234 penalties had been issued so far – with a total value of £58,500. Only 2 per cent of that sum has actually been recovered.

“Action to collect penalties will accelerate during summer 2025,” said Justin Madders, a junior minister at the Department for Business and Trade. “Outstanding penalties will be referred to debt collection and litigation where appropriate.”

The news comes as Companies House continues to face criticism over its ability to prevent the misuse of UK corporate structures. The agency has become a target for fraudsters and even pranksters, with bogus company names such as “Darth Vader” and “Santa Claus” previously accepted onto the official register.

Reforms currently being rolled out include mandatory identity verification for company directors and tougher checks on beneficial ownership. These follow an admission from the agency that up to 20 per cent of the 4.9 million businesses on its register may have submitted false or misleading information.

Byrne, who has been a vocal critic of the pace of reform, said the minimal level of enforcement undermines the government’s promises to clean up the UK’s corporate landscape.

“When up to 1 million companies are built on lies, it’s time for Companies House to get tougher,” he said. “It’s no longer just a register – it’s the frontline in the war on economic crime.

“We won’t defeat fraud with warnings. We won’t clean up the system with good intentions. We need action. We need enforcement. And that means using the power to punish those trying to corrupt our economy, dodge sanctions or launder cash.”

Companies House said the penalties were part of a broader strategy and would be rolled out in phases. “Financial penalties are one sanction that is available to Companies House and is an important part of our overall enforcement,” a spokesperson said. “Volumes will increase over time to address non-compliance. We have robust processes to pursue the payment of penalties, including taking court action where necessary.”

But concerns persist over the agency’s capacity to implement reforms effectively. Byrne has warned that a 20 per cent vacancy rate in digital roles at Companies House may be hampering its transformation plans, and that loopholes in the system continue to be exploited for sanctions evasion and money-laundering – sometimes with the alleged assistance of UK nationals.

The revelations add further pressure on ministers and civil servants tasked with overhauling the UK’s business registry, which has long been criticised as one of the weakest links in the country’s economic crime defences.

Read more:
Companies House collects just £1,250 in fines despite new powers to tackle fraud

0
FacebookTwitterGoogle +Pinterest
previous post
UK bans £2.2bn in hidden fees and fake reviews under new consumer protection law
next post
UK economy under strain as Trump’s tariffs spark fears of global recession say KPMG

You may also like

AI firm secures $300m valuation in major US...

August 4, 2024

Prisoners could get ‘AI cellmate’ to help them...

January 28, 2025

How SEO Enhances Brand Recognition in Fintech’s Competitive...

December 16, 2024

Jaguar Land Rover Boosts EV Mechanic Training to...

May 30, 2024

Australian startup Recharge bid could revive UK battery...

January 25, 2023

Is Monetary Policy the Force Behind Shifting Exchange...

January 29, 2025

HMRC spends just 6% of annual budget on...

August 17, 2023

Names of UK Covid business loan borrowers to...

January 5, 2023

5 Ways To Keep From Losing Your Computer...

August 8, 2022

Cineworld to close dozens of cinemas in bold...

July 7, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Half of Brits would trust AI for legal advice, survey finds – but experts urge caution

      June 9, 2025
    • Business leaders paralysed by risk warn BDO as caution stifles growth

      June 9, 2025
    • Starmer pledges £1bn investment to supercharge UK tech and AI infrastructure

      June 9, 2025
    • 5 terrifying flashpoints that could ignite global war

      June 9, 2025
    • HMRC inheritance tax investigations surge 37% as treasury seeks to plug revenue gap

      June 9, 2025
    • Believ secures £300m to roll out 30,000 public EV charge points across the UK

      June 9, 2025

    Categories

    • Business (8,161)
    • Investing (2,019)
    • Politics (15,572)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved