The official company register of the VK was contracted at the end of 2024 and marked the first registered decrease since Companies House started publishing statistics in 2012.
5,408,707 companies were listed in the register at the end of December – 19,879 less than the previous quarter. In the meantime, the so -called ‘effective register’, which excludes companies in dissolution or liquidation, fell with 59,495.
Companies are subject to part of this decline to its new powers that make stricter police of the register possible, companies that do not offer suitable registered office addresses. However, the current economic squeeze also makes an important contribution: in the last three months of 2024 alone, 203,584 companies have been resolved, by 24.6 percent at the same period in 2023, while the registrations fell by 15.5 percent to 181,261.
Experts point to several factors. Henry Whorwood, director of research at Beauhurst, quotes’ a double Whammy of inflation and the [tax rises in the autumn] Budget ”as drivers behind the closures. The increase in the October from Rachel Reeves to the national insurance of employers from 13.8 to 15 percent – in addition to a reduction in the salary threshold – further increased labor costs. From 6 April, companies must also wear an extra £ 2,000 per employee for people with a minimum wage.
Michael Steed, a chartered tax adviser and president of the Association of Accounting Technicians, adds that many entrepreneurs can choose to stay any traders instead of taking up, partly because of this rising tax and administrative burdens. “You have to comply with the house of companies. You have to keep your minutes, your dividend payments. All those must be in real time, “he explains.” While if you compare that to a only trader, only you, HMRC and the Holy Spirit know your results. “
Companies House initially postponed the publication of its statistics for Q4 2024 after detecting ‘anomalies’, later attributed to human errors. Since then it has revised the figures for previous reporting people. Despite the Blip, the latest data underline the real pressure on British companies, because the investigation into regulations, tax obligations and rising costs continue to weigh on decisions of owners about their business structures.