Small businesses and entrepreneurs are the backbone of the UK economy. As a company director myself, I have seen firsthand the pressures that startups and small businesses face in the current economic climate.

Yet Companies House fees for basic statutory services have increased dramatically in a remarkably short period.

In less than two years, the fee for filing an annual digital confirmation statement has risen from £13 to £50. This represents an increase of approximately 285% for a filing that every company is legally required to make each year — even when none of the company’s information has changed.

The cost of incorporating a company online has risen even more dramatically, from £12 to £100 — an increase of more than 700%.

At a time when government services are becoming increasingly digital and automated, increases of this magnitude are difficult for small businesses to understand or accept.

Businesses already make a substantial contribution to public finances through Corporation Tax, PAYE, National Insurance, VAT, business rates and other taxes and statutory costs. Legitimate businesses should not face rapidly escalating mandatory administrative charges simply to establish a company and keep its statutory record up to date.

We recognise that Companies House has important responsibilities, including maintaining the companies register, verifying identities, tackling fraud and helping combat economic crime. These functions need proper funding.

However, we believe the Government should reconsider whether compliant businesses — particularly small businesses — should bear so much of this cost through mandatory filing fees.

We therefore call on the UK Government to:

Substantially reduce the £100 digital company incorporation fee.
Make the annual digital confirmation statement free or reduce it to a nominal fee.
Review how Companies House’s wider enforcement and economic-crime functions are funded, rather than continually increasing mandatory charges on compliant businesses.
Ensure future Companies House fee increases are proportionate, transparent and properly justified.
Every pound matters to a small business. Money spent on disproportionate administrative charges is money that cannot be invested in staff, equipment, technology, stock, premises or growth.

The UK should encourage people to start legitimate businesses, create jobs and contribute to the economy — not place ever-increasing administrative costs in their way.

If you believe starting and running a legitimate UK business should remain affordable, please sign and share this petition and ask the Government to reconsider these charges.