This is an update to our last article about problems with filing light and double-sided documents at Companies House. We have received some helpful information from around the profession and we had a lovely long response from Companies House, so we think that we can now give you some useful advice on how to avoid problems.
We should start by saying that Companies House have indicated that they will provide their official advice in Dear IP. We have told them that we’d publish this as well, as it is likely to be quicker.
Companies House confirmed that that it “has tightened its procedures recently”. Putting aside our view that this could have been communicated better, the following points first explain the problem, then suggest a practical solution. All this is in the hope that by telling you that there is a problem, you can avoid it in future, saving yourself from regulatory trouble, while also rightly helping to ensure that the integrity of the Register is given priority.
We should start by saying that Companies House have indicated that they will provide their official advice in Dear IP. We have told them that we’d publish this as well, as it is likely to be quicker.
Companies House confirmed that that it “has tightened its procedures recently”. Putting aside our view that this could have been communicated better, the following points first explain the problem, then suggest a practical solution. All this is in the hope that by telling you that there is a problem, you can avoid it in future, saving yourself from regulatory trouble, while also rightly helping to ensure that the integrity of the Register is given priority.
- Light copies 1 – In the standard PDF Form 600 available on the IPS case management system, there were different fonts in the original print that were being rejected. Turnkey have confirmed that they were aware of the problem some weeks ago and amended the Form in an update. Please ensure that if you use Turnkey’s IPS system, you are using the latest update.
- Light copies 2 – Documents had been submitted where writing had been inserted using blue ink, or very faint ink, or ink that was significantly lighter than the rest of the print on the form. Companies House instructions do require “black ink or black type”. You should check documents on receipt and, if there is any doubt, get the document completed again so that it is darker. This is only going to happen more often with systems adapting to the New Rules and more documents being completed remotely and communicated electronically. You have to ensure that the version you finally send to Companies House is still clearly legible and consistently dark.
- Errors – We all make errors, but given the potential significance of a document not being “delivered” to Companies House, you have to take extra care. If you think that Companies House are being unreasonable in requiring you to get every detail correct, see our earlier Blog article here about what happened when they made a tiny error. They will be very precise and they are right to protect the integrity of the register. Knowing that, therefore, you should take extra steps to check documents before they are sent. Consider whether every relevant box has been completed, that any dates are correct and complete, and that any signatures are in the right place. You will still make the occasional error, but it is in your best interest to minimise that risk.
- Double-sided documents – Companies House have said that although they do accept double-sided documents, it causes them extra work if the document starts on the back of something else, such as a covering letter. Companies House has said that they were not rejecting documents that were incorrect, but that if they rejected a document for some other reason, they would also mention the double-sided problem, to educate the user for future filings. The Register can only have the filed document on it, so please ensure that, if you send a covering letter, it is separate, so that the Form stands alone and can be scanned from the first page to the last without extra, irrelevant, pages that don’t have to be filed.
We have to finish, I am afraid, with a warning. Despite the potential consequences of a document not being “delivered” on time, Companies House have made it clear that they cannot allow a period of grace. The new procedure will be followed and light or incorrect documents will be rejected. We have asked them to get together with the Insolvency Service and see if there is scope for a more satisfactory long-term solution. We said, “while we understand that you cannot provide a grace period for filing within the current framework, we would argue that between Companies House and the Insolvency Service there should be scope to amend the legislation so that, in future, the decision to reject documents purely on the grounds of scanning difficulties will not have such an extreme impact. One simple solution, although it would, no doubt, have further unintended consequences that would affect your operations, would be for a document to be deemed “delivered” under the insolvency legislation without reference to your Companies Act defined “receipt”. That would allow a light form to be delivered and meet the statutory time limits, while still allowing you to delay filing without such a significant impact on the insolvency proceedings.”. We have not asked Companies House to respond direct to us and we will leave it to them and the Insolvency Service to take action or issue guidance as they see fit.
