Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Acknowledged
HMRC and Companies House system integration for joint registration faces significant long-term challenges.
Recommendation
HMRC and Companies House have explored opportunities from Companies House’s new powers, including a single streamlined system for registering and filing company, Corporation Tax and VAT documentation which would provide more assurance over the addresses of registered businesses. HMRC and Companies House estimated in early 2024 that closer integration of systems would take between five and 10 years to implement.43 HMRC and Companies House told us they are regularly meeting about this programme, but it will require significant investment and there are issues which need to be resolved first, including different definitions in their regimes and differences in filing dates.44 Both departments acknowledged that delivering 36 C&AG’s Report, para 2.8 37 Qq 56, 72 38 Q 71 39 Q 43 40 Autumn Budget 2024 – HC 295 41 Q 81 42 Q 94 43 C&AG’s Report, para 2.22 44 Q47 12 a joint service offers a significant prize.45 Companies House also explained that its shopping list was full delivering the reforms that ECCTA has already made possible, and it would need to deliver these first before a joint registration service.46 HMRC told us it was working with Companies House to bid for more investment at Spending Review to introduce a joint registration service.47 45 Qq 47–48 46 Q 47 47 Q 93 13 2 Preventing and responding to tax evasion Reforms to the role of Companies House
Government Response Summary
HMRC will write to the Committee in 6 months to update them on plans and progress regarding closer cooperation on company registrations and de-registrations, accounting and filing, as well as sharing risk intelligence and data.
Government Response
Acknowledged
HM Government
Acknowledged
3.1 The government agrees with the Committee’s recommendation. Target implementation date: November 2025 3.2 HMRC will write to the Committee in 6 months' time to update them on plans and progress. HMRC, Companies House and the Insolvency Service have strong relations, further strengthened by the Economic Crime and Corporate Transparency Act 2023 (ECCTA). The three departments have developed a programme of work to facilitate closer co-operation on company registrations and de-registrations, accounting and filing, as well as sharing risk 46 intelligence and data. The Exchequer Secretary to the Treasury, provided an update on progress in a speech on 11 March 2025 - Exchequer Secretary to the Treasury: 20 years of HMRC - reflections and looking ahead - GOV.UK. 3.3 This joint programme includes implementing consistent identity verification and authentication (IDV&A), access controls, permissions and risking tools across both HMRC and Companies House and longer-term transformation of the end-to-end registration process; implementation of fully tagged financial accounts in iXBRL to enable better targeting of risk by both HMRC and Companies House; an enhanced framework for sharing risk intelligence and data across HMRC, Companies House and Insolvency Service; and a package of changes to help prevent, detect and penalise rogue directors who abuse insolvency processes.