Companies House collects just £1,250 in fraud fines

Companies House has collected a mere £1,250 in fines despite being granted new powers to combat corruption. Following revelations of fraudulent registrations, including names like “Darth Vader,” the agency is implementing identity checks for directors, acknowledging that up to 20% of the 4.9m companies may have provided false information. Since last October, 234 penalties totalling £58,500 have been issued, but only 2% have been collected. Liam Byrne, chair of the Business Select Committee, expressed concerns, saying: “When up to 1m companies are built on lies, it’s time for Companies House to get tougher.” He emphasised the need for decisive action against economic crime. Justin Madders, a minister at the Department for Business and Trade, said action to collect penalties will “accelerate during summer 2025.”