The reliability of Companies House data faces fresh scrutiny after research revealed that nearly 40% of UK companies have identified discrepancies between the register and their own records. A survey of 200 general counsels or company secretaries at businesses with turnover of at least £50mn found 39 per cent had uncovered inconsistencies, including outdated director information. Chief Executive Pippa Begg of Board Intelligence described the issue as "completely pervasive, systemic." Approximately a fifth of respondents reported receiving a penalty or fine linked to inaccurate, incomplete, or hard-to-access business information.
The findings emerge as new director identity verification requirements come into full force this month, aiming to improve record accuracy following past scandals involving bogus director names. Compliance remains a significant administrative burden; two-thirds of surveyed businesses estimate it would take 13 hours or longer to tally their legal entities. Some large firms with over 1,000 entities spend roughly 37 hours weekly on recording changes.
Meanwhile, Chancellor John Healey recently pledged to scrap "pointless paperwork" by removing the requirement for small companies to file full profit and loss accounts. Companies House has begun using artificial intelligence for enforcement, with Begg suggesting the technology could significantly boost accuracy even within current manual systems, noting many firms still rely on Excel spreadsheets. The regulatory body maintains its objective is to ensure register accuracy and views voluntary data corrections as positive progress.
Source: Financial Times Companies · Summarized by HeadlinesBriefing