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

Despite being granted new enforcement powers to combat fraud and corporate abuse, Companies House has only issued 234 penalties totaling £58,500, with a mere £1,250 recovered. Concerns are growing over the UK's commitment to tackling economic crime, with MPs calling for tougher enforcement. New reforms include mandatory identity verification and stricter checks on beneficial ownership to prevent misuse of corporate structures. Critics express that minimal enforcement undermines government promises, illustrating the urgency for Companies House to intensify actions against fraudulent registrations to enhance the integrity of 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.

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.

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