UK companies have been fined for submitting false information during registration

Hundreds of UK companies have been fined for submitting false information during registration

According to The Guardian, the UK's Companies House, the government agency responsible for overseeing national company registration, has issued fines totaling hundreds of thousands of pounds to companies using false information during registration, after gaining new investigative powers. However, only £1,250 of these fines have actually been paid.

These incidents expose serious loopholes in the UK's company registration system and have raised public and industry concerns about false registrations, fraud, and whether penalties can be strictly enforced.

To improve the authenticity and transparency of company registration, Companies House earlier introduced new regulations, including requiring identity verification for company directors. The agency acknowledged that up to 20% of the 4.9 million companies registered in its database may have submitted false information. This includes cases where people registered companies using names like "Darth Vader" and "Santa Claus" as directors.

Since last fall, the agency has gained the authority to impose financial penalties on companies violating regulations, such as failing to submit ownership information on time. However, sources revealed that since October 2024, Companies House has issued 234 fines totaling £58,500, but only £1,250 has been paid, accounting for about 2% of the total.

This data, while revealing flaws in the company registration process, also highlights the challenges Companies House faces in enforcing action against false registration and commercial fraud. While the agency has been granted the authority to impose fines, the actual effectiveness still needs improvement.

Justin Madders, Minister for Business and Trade, stated: "We will accelerate the collection of fines by the summer of 2025. For individuals who have not yet paid their fines, we will investigate and decide whether to refer them for debt collection and legal proceedings."

Additionally, Companies House still has 20% of relevant positions vacant, which affects the implementation of certain measures.

Liam Byrne, Chair of the Parliamentary Business Affairs Committee, emphasized: "Companies House is no longer just a registration agency; it has become the frontline in the fight against economic crime." He pointed out that some registered companies are being used to evade international sanctions and engage in money laundering activities, with "UK residents allegedly involved in assisting."

Therefore, to truly achieve a transparent, efficient, and robust regulatory system, institutional reform alone is not enough; strong enforcement and sustained investment are also necessary. The Labour Party's spring budget statement also made it clear that funds and technology will be invested to combat tax evasion and other violations of tax laws.

Donald Trump has imposed 10 per cent tariffs

Last week, U.S. President Donald Trump signed an executive order at the White House for "reciprocal tariffs," aimed at imposing a 10% "minimum benchmark tariff" on U.S. trading partners. It is expected that higher tariffs will be imposed on certain trade partners starting April 9. A series of measures have directly raised the U.S. tariff level to its highest point in over a century.

According to White House documents, 21 countries, including the UK and Australia, will face a 10% tariff, followed by 20% for the EU, 24% for Japan, 34% for China, 46% for Vietnam, and 49% for Cambodia.

The only exceptions are Canada and Mexico—goods that meet the criteria under the USMCA (United States-Mexico-Canada Agreement) will remain tariff-free, although automobiles, steel, and aluminum have already been separately targeted.

According to an earlier executive order signed by Trump, tariffs on all automobiles and automotive parts exported to the U.S. will be raised to 25%, and all imported computers (including laptops) will also be affected by the new tariffs.

Although Trump unilaterally calls these new tariffs the "Declaration of Independence" for the U.S., the reality is that during his tariff announcement, the U.S. dollar sharply dropped against major currencies, U.S. stock futures plummeted, and tech giants like Apple, Tesla, and Nvidia lost trillions in market value. According to calculations by Yale University, with a 20% tariff, each American household will spend an additional $3,400 to $4,200 per year.

Meanwhile, with the global economic situation unstable, Trump's "tariff bomb" is sure to further disrupt the market. In response to his challenge to the global trade system, the EU, Canada, and other countries have already stated they will take "reciprocal retaliation."

Pressure grows on Government to allow London tourist tax

The leading think tank Centre for London has warned in a new report that London's creative industries are facing a development crisis due to a 50% decrease in per capita spending on arts and culture by the London Assembly from 2010 to 2021.

As a result, the Centre for London, along with numerous industry representatives, is pressuring London Mayor Sadiq Khan to allow the imposition of a tourist tax on overnight visitors to London in order to help invest in the city's arts and cultural sectors.

A tourist tax, also known as a visitor tax, accommodation tax, or city tax, is an additional fee levied on visitors (especially overnight visitors) during their stay in certain countries or cities. It is typically calculated per person per night or as a percentage of the accommodation cost, collected by hotels or accommodation platforms and paid to local governments or relevant tourism authorities.

The primary purpose of the tourist tax is to increase fiscal revenue to maintain city public services (such as attractions, street cleaning, public transport, etc.) and support cultural, environmental protection, and tourism promotion activities.

So far, the UK has not implemented a nationwide "tourist tax" policy, but some local councils have started or plan to pilot such a tax.

Since April 2023, Manchester has become the first city in the UK to officially impose a tourist tax, charging £1 per night per room, applicable only to hotels and short-term rentals in the city’s "city tourist zone." Edinburgh and Glasgow in Scotland are also planning to legislate for a tourist tax, charging £1-2 per night per visitor.

Additionally, major European cities such as France, Italy, Spain, Germany, and Austria have their own methods and fees for collecting tourist taxes.