If you’re setting up or managing a limited company in the UK, HMRC’s latest compliance drive should be firmly on your radar. Greater scrutiny is being applied to directors, and ensuring your details are correctly registered has become a critical part of running a company.
What’s Changed?
As part of a wider clampdown on tax avoidance and to improve corporate transparency, HMRC now expects directors to provide complete, accurate and up-to-date personal information when forming or operating a company. This includes:
- Your legal full name
- Your current residential address
- Your National Insurance number
- Your date of birth
- Your relationship to the business (e.g. Director, Person of Significant Control)
Missing or incorrect information can now delay tax registrations, trigger compliance checks, or result in penalties, even where the oversight is unintentional.
Why the Increased Focus?
In the past, directors were able to form companies with minimal verification, but this created opportunities for misuse. HMRC, working alongside Companies House, is now tightening processes under the Economic Crime and Corporate Transparency Act to ensure company officers are transparent, traceable, and accountable.
Consequences of Non-Compliance
Failure to keep your information accurate or to register your company promptly can lead to significant repercussions. HMRC is comparing data with Companies House more closely than ever — and acting on inconsistencies.
1. Penalties for Late Corporation Tax Registration
Companies must register for Corporation Tax within three months of starting to trade. Missing this deadline may lead to:
- £100 initial penalty
- Another £100 after a further three months
- Daily penalties of £10 after six months (for up to 90 days)
- Additional tax-related penalties for late filings
2. Potential Personal Liability
If a company trades without registering with HMRC and there is evidence of deliberate behaviour, directors may become personally liable for unpaid taxes.
3. Company Strike-Off or Prosecution
Companies House can remove non-compliant companies from the register. In more severe circumstances, directors could face prosecution and:
- Financial penalties
- Disqualification from acting as a director (up to 15 years)
- Prosecution, including the possibility of imprisonment
4. Increased Risk of Investigation
Businesses with inconsistent or incomplete director information may be selected for investigation, potentially leading to trading disruption, frozen accounts, and increased scrutiny.
What Directors Should Do Now
To stay compliant and avoid unnecessary issues:
- Check your formation documents for accuracy
- Ensure Companies House and HMRC hold matching information
- Update personal details promptly if you move or change your name
- Register for Corporation Tax within the required timeframe
- Seek professional guidance to ensure full alignment with current regulations
How Pearson McKinsey Can Support You
At Pearson McKinsey, we work with directors and owner-managed businesses across the UK to ensure full compliance with HMRC and Companies House requirements. Whether you’re forming a new company or reviewing your existing records, our team ensures your information meets all legislative standards.
- HMRC & Companies House compliance management
- Expert company formation support
- Ongoing advisory for directors
- Corporation Tax registration
With regulations tightening, now is the time to ensure your company’s information is correct, consistent, and fully compliant. Get in touch with us today to find out how we can help:
📞 Call us at: 020 8520 8442
✉️ Email us at: info@pearsonmckinsey.co.uk