The Companies House Roadmap: What’s Changing and What it Means for You

You might have seen headlines about changes coming to Companies House, and if your franchise business is a limited company, it’s well worth knowing what’s on the horizon. While much of this is still being shaped, the Companies House roadmap gives a strong indication of where things are headed.

The aim of the reform is clear: tackle fraud, improve data quality, and make the UK a harder place for economic crime to hide. That’s all good in principle, but for honest franchise business owners, it also means a few extra things to think about, especially when it comes to how you register your company, what data you’re required to file, and how your information is shared publicly.

As always, the key is to understand what’s coming, when it’s coming, and how to stay compliant without adding unnecessary stress. That’s where a good accountant (hello!) can really help.

What’s the roadmap all about?

The Economic Crime and Corporate Transparency Act became law in late 2023, and Companies House is gradually rolling out the changes under that banner. You can view the official roadmap here, but here’s a summary of the main themes that franchise business owners need to be aware of:

• Stronger ID checks for anyone setting up or managing a company

• More data filed, and filed more often

• Greater transparency, including possible changes to what financial data is publicly viewable

• Tougher enforcement around fraud, disqualified directors, and false information

So, what’s changing, and when?

Here’s a snapshot of the key changes and where we are with each one:

Identity verification – now being rolled out

Anyone registering a company, acting as a director, or filing on a company’s behalf will need to verify their identity. This is already starting to come into effect and is expected to be mandatory across the board in the not-too-distant future.

What to do:
If we act as your accountant and file documents on your behalf, we’ll guide you through any steps you need to take. If you manage things yourself, you’ll need to go through a verification process with Companies House or via authorised agents.

Changes to accounts filing – on hold indefinitely

There’s a proposal to make profit and loss accounts mandatory for small companies. Currently many small franchise businesses can file abridged accounts that don’t show this level of detail. The worry here is that publishing a P&L could expose sensitive information – especially for small companies in competitive industries.

While not completely off the cards, for now this proposal has been put on hold indefinitely.

What to do:
Keep an eye on how things unfold but don’t panic because, as we’ve mentioned, this is currently on hold. If, however, you’re concerned about what you might need to publish in future, it’s worth speaking to your accountant so you can start planning. There may be ways to adjust how you structure or report income to protect commercially sensitive data, but this needs to be handled carefully and within the rules.

Tighter control on data accuracy – coming soon

Companies House will be given more power to challenge and remove information that looks suspicious, or that doesn’t meet the new requirements.

That might sound bureaucratic, but in practice it could help clean up company data across the board, and make sure you’re not being linked to a director with a similar name who’s already been disqualified!

What to do:
Make sure your company records are up to date and accurate. That includes director details, registered addresses, SIC codes, and shareholder information. It’s something we already stay on top of for our clients, but if you file yourself, double-check your latest submission.

More frequent updates – timeline to be confirmed

Annual filing may eventually be replaced with more regular updates. The idea here is to make company information more current and reliable, but it does mean franchise businesses will have to keep on top of filing deadlines more often.

What to do:
If you’re already working with an accountant who handles your company secretarial work, you’re in good hands. But if you manage everything yourself, this might be the point where it’s worth handing that over, especially as the admin load increases.

What’s the point of all this?

The big picture here is about reducing fraud and improving transparency. At its core, this reform is designed to:

• Stop disqualified directors from slipping through the net

• Make it harder to register fake companies

• Improve trust in the UK business register

• Make economic crime easier to spot and harder to commit

In other words, it’s not about making life difficult for honest small franchise businesses, although it might feel like that at times. The intention is to create a more robust system that helps everyone in the long run.

That said, we know many of our clients are understandably cautious about some of the proposals, especially anything that involves publishing more financial data than before. That’s a perfectly valid concern. And we’ll be watching closely as the legislation develops, so we can advise accordingly.

What you don’t need to do right now

This is still a plan, not a done deal. The ID verification is in motion, but the more detailed reporting and accounts changes are still being reviewed. So, there’s no need to panic, and definitely no need to overhaul your company structure just yet.

What you can do now

• Stay aware – changes are happening in stages, and will affect most limited companies at some point

• Get your records in order – this is a great time to make sure all your company filings are accurate and up to date

• Speak to your accountant – especially if you’re worried about data privacy, reporting requirements, or how your company is structured

We’re here to help at every step

At The Franchise Accounting Specialists, we’re keeping a close eye on how the Companies House reforms develop. If you’re not sure how this might affect your franchise business, or just want to make sure you’re on the right track, we’re always happy to talk it through, so get in touch – we’ll help you stay compliant, protected, and ahead of the curve.