Companies House has recently published its ‘2018-19 Companies Register Activities‘ report. The document provides some valuable insights regarding the different corporate bodies in the UK and how they shape the Companies Register, and subsequently the UK economy.
This reshaping process is in many ways, the product of wider developments we have been witnessing in the past few decades, both globally and domestically. The continuous advancement in scientific research and the growing demand for new technologies, for example, has more than likely motivated the dramatic increase of tech-based companies in the UK.
As the report points out, compared with 2013-2014, the number of technological, scientific and information-based companies is 300,000+ higher than what it was only six years ago! Additionally, the 2018-2019 report presents the highest number of new company incorporations since 2009. The share of new incorporations in the Companies Register today is tremendous. More than 50% of the total companies are aged 1-4 years, and when adding the 5-9 age group of businesses, this figure climbs beyond the 70% bracket!!
These results might be dramatic but not surprising at all, as they go hand in hand with the technological shifts already mentioned or other cultural and geopolitical developments, which allow big and small UK companies to operate in a broader, more flexible commercial sphere.
What about IR35 and changes in UK tax regulations?
Currently, it looks as though, domestic changes such as IR35 or the digitisation of tax (MTD) may have some deterring effect on freelancers, contractors and small businesses; however, this year’s stats prove it to be somewhat limited compared with the broader benefits of incorporating a company.
To summarise this year’s report and figures, we’ve prepared the infographic below, or to see 2017-2018 report summary, click here.