Crackdown on fake company registrations – how can businesses stay compliant and avoid risks?
- TBA
- May 13
- 3 min read
Updated: May 29
Since the Labour Party took office, its fiscal policy has been full throttle: sweeping tax hikes, cuts to benefits, public sector job losses, and spending reductions — all to fill what is claimed to be a £22 billion deficit left by the former Conservative government and to free up funds for strategic priorities such as education, clean energy, and healthcare.
In her March Spring Budget, Chancellor Rachel Reeves made it clear that the government would focus on cracking down on tax evasion and avoidance, projecting £7.5 billion in additional revenue.
This crackdown has now extended to company registration across the UK.
Over 100 Companies Fined — Penalties in the Tens of Thousands
The government has taken swift enforcement action. After granting new enforcement powers to Companies House, the government agency overseeing company registration, a total of 234 fines have been issued to companies found submitting false information — with total penalties reaching £58,500.
Offences include submitting false director details, faking persons of significant control, and using bogus addresses. There have even been cases of companies registered under names like ‘Darth Vader’ and ‘Santa Claus’.
Companies House Steps Up Enforcement — Full Recovery Efforts in 2025
All companies operating in the UK must be registered with Companies House. Once registered, they are required to submit an annual Confirmation Statement and Annual Accounts, which help the public, investors, and government assess a company’s financial health and operations.
Failure to file these documents on time can result in penalties, including fines and compulsory company dissolution.
With its expanded powers, Companies House is now authorised to issue fines for submitting false information or abusing the registration system.
Despite having issued 234 fines, enforcement has so far recovered only £1,250, around 2% of the total.
The government also plans to introduce more frequent spot checks, increasing the likelihood of non-compliant companies being investigated.
Whistleblower Reward Scheme to launch
Alongside the crackdown by Companies House, HMRC will introduce a new Whistleblower Reward Scheme later this year. This aims to tackle serious tax evasion and avoidance involving large companies, individuals, and offshore entities — effectively plugging gaps in the regulatory net.
The government says the scheme will be modelled on successful programmes in the US and Canada, offering rewards linked to the amount of tax recovered through whistleblower reports. The number of reports is expected to rise from 500 to 600 per year.
Some advice from TB Accountants - about company registration
As the UK intensifies efforts to combat shell companies, fraud, and tax evasion, businesses must take proactive steps to ensure compliance and avoid penalties. Here are some practical tips:
1. Submit Accurate Company Information
Avoid using generic templates or random names for directors.
Your registered address must be valid and in use, or you should engage a licensed UK registered office service.
2. Ensure Director and PSC Information Is Genuine
Complete identity verification before company formation.
Keep information on directors and persons of significant control up to date to avoid penalties for outdated records.
3. File Confirmation Statements and Accounts on Time
Incorporate filing deadlines into your compliance processes.
Consider appointing a professional accountant or company formation agent to handle submissions.
4. Establish Internal Compliance Systems
Especially important for medium and large companies: designate staff responsible for company filings and compliance.
Conduct regular compliance audits to manage risk.
5. Stay in Touch with Professionals
Regularly consult with accountants and legal advisors, especially regarding shareholder structures and director changes.
For complex international structures, seek advice from tax consultants to determine whether specific compliance obligations are triggered.
Registration is not just a formality — compliance is your company’s safeguard.
If you have questions about confirmation statements, annual accounts, corporation tax, VAT filings, or any other UK company or personal tax matters — or if you require a help with a compliance check or audit, contact our team.
For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information.
Get in touch with us at info@tbgroupuk.com or for a free one-to-one consultation.
