A Reminder - Changes to UK Company Law
The Economic Crime and Corporate Transparency Act received royal assent on 26 October 2023 which introduced the biggest changes to Companies House since corporate registrations were established in 1844, gives Companies House the power to play a far more significant role in tackling economic crime, supporting economic growth, and making sure the UK is one of the best places in the world to start and grow a business.
Over time, the measures will lead to improved transparency and more accurate and trusted information on our registers. This will drive confidence in the UK economy, increasing the value of the register for businesses and citizens across the UK and beyond.
The measures include:
introducing identity verification for all new and existing registered company directors, people with significant control (PSCs), and those who file on behalf of companies
broadening our powers to become a more active gatekeeper over company creation and more reliable data
more reliable and accurate financial information on the register, which reflects the latest advancements in digital technology and enables better business decisions
providing Companies House with more effective enforcement powers, and increasing our ability to share relevant information with partners
enhancing the protection of personal information to protect individuals from fraud and other harms
New Right to Rent Code of Practice comes into force 22nd January 2024
Since February 2016, Landlords in England have been required to check that anyone renting residential property’s the correct legal immigration status. This means that landlords and their letting agents (where applicable) must check documents manually or use the Landlord Checking Service through the Home Office to ensure that tenants have the Right to Rent..
On the 22 January 2024, the revised code of practice will be introduced, replacing the previous version and the changes implemented will coincide with higher maximum fines for non-compliance.
These higher fines represent what the Home Office has described as one of the “biggest shake ups” of civil penalties since the checks were first introduced.
Landlords are responsible for carrying out Right to Rent checks to ensure that all occupants of residential properties aged 18 and over have the Right to Rent in England. The penalties for non-compliance will increase from £80 per lodger and £1,000 per occupier for an initial breach to up to £5,000 and £10,000 respectively. Any repeat breaches will attract fines as high as £10,000 and £20,000.
What next for the Renters Reform Bill?
A lot of chatter has appeared in the trade press over the last 24 hours regarding the Renters Reform Bill and the intentions of the Labour Party if they win a general election. A lot of the discussion circulates around the abolition of Section 21 (Form 6A), so much so that landlords are constantly having a ‘knee jerk’ reaction every time the trade press, national press, TV reports, a blog make reference to the notice disappearing. This has lead to many landlords selling up and exiting the letting sector.
With the greatest of respect to all those who report on the Renters Reform Bill, it’s irresponsible to mislead landlords in this way; landlords who in 2019 reacted to the initial proposal of abolishing the Section 21 notice were unfortunately mislead into thinking that firstly the notice would be abolished imminently. But let’s also think about tenants and the impact this ‘misinformation’ has affected them. Many tenants could have avoided having notice served on them and worse still, facing accelerated possession through the courts and possibly eviction. It has not and will not be abolished for a while.
Revised Guidance for Right to Checks
All landlords in England have a responsibility to prevent those without lawful immigration status from accessing the private rented sector. You do this by conducting right to rent checks on all prospective adult tenants before the start date of a tenancy agreement, to make sure the person is not disqualified from renting a property by reason of their immigration status.
This guidance provides information on how and when to conduct a right to rent check. You should also refer to the following documents:
Code of practice on right to rent: civil penalty scheme for landlords and their agents
Code of practice for landlords avoiding unlawful discrimination when conducting ‘right to rent’ checks in the private residential sector
Right to Rent Checks: A user guide for tenants and landlords
If you conduct the checks as set out in this guidance and the code of practice, you will have a statutory excuse against liability for a penalty in the event you are found to have rented to a person who is disqualified by reason of their immigration status.