October 2009 regulation changes

Common commencement dates

A number of key government departments issue all their changes in regulations twice a year, on 6 April and 1 October. These dates are called common commencement dates (CCDs).

CCDs enable you to prepare your business for the implementation of any changes needed to comply with new and revised regulations.

Regulation updates - available elsewhere on this site and through our email alert service - bring you more detail on the changes outlined below, some of which may be relevant to your business.

What to expect from 1 October 2009 - a summary

This page offers a snapshot of the main changes expected to come into force on 1 October 2009. It is not to be considered as a full and complete list of all the changes that might affect businesses as of October 2009.

Please note that this CCD summary will be updated and links will be added as regulation updates go online. You will be able to access detailed guidance via the individual regulation update pages.

Taxes, returns & payroll
Employing people
Your business sector

Retail
Construction

Taxes, returns & payroll

The Companies Act 2006 is changing the law for companies. It introduces a range of deregulatory measures, simplifies and improves company law and makes the law more flexible, especially for small businesses. These changes affect every company operating in the UK. Passed in 2006, the Act reaches the final stage of implementation on 1 October 2009.

Directors' addresses: all companies will need to provide a service address for every director in their register of directors. They will also have to keep a record of their directors' residential addresses separate from their register of directors. A company may only use a director's address to communicate with that director, to comply with an obligation to file particulars with Companies House and as agreed with the director concerned. See our regulation update on the non-disclosure in the public record of directors' residential addresses.

Company and business names: the detailed requirements and prohibitions for company and business names in the new legislation are largely the same as at present. However, measures will be introduced to enable the public to easily find a business name and prevent business names being misleading. See our regulation update on the revised restrictions on a company's choice of registered name.

Display of the company name at its premises: companies that are fully compliant with the existing requirements will not need to change the signs at their premises. However, a company will not have to display its business name where - for reasons of personal security - all of its directors are ones whose residential address cannot be disclosed to a credit reference agency. See our regulation update on the non-disclosure in the public record of directors' residential addresses.

Memorandums and articles of association: where a business incorporates on or after 1 October 2009, it will be able to use - if it so chooses - model memorandum and articles of association. See our regulation update on the changes to the documents required for incorporation.

Company particulars in correspondence: a company will have to include its name in all forms of business documentation, including electronic documents. There is no change to the requirements to provide other information in business letters, order forms and websites.

Place for keeping key company records: every company will be able to have a single alternative inspection location (SAIL) as an alternative to its registered office, at which it must make its key records available for public inspection. This site will have to be in the same part of the UK as its registered office. Companies will have to notify Companies House of their SAIL, the records they keep there and of any change in their SAIL's address. See our regulation update on changes to where, how and when people can view company records.

Inspection of company records: a person wishing to inspect a private company's records will have to give advance notice of the date and time they wish to carry out the inspection. In addition, companies will not be able to prevent the person from copying all or part of a record they are entitled to inspect. See our regulation update on changes to where, how and when people can view company records.

Providing copies of company records: if a person requests a hard copy of a company record, the company must provide a hard copy even if the record is held electronically. If a person requests an electronic copy, the company must do so if the record is held electronically. See our regulation update on changes to where, how and when people can view company records.

Notification of particulars of share capital: in an application for a new company, the particular of share capital will be included in a new 'statement of capital', rather than being included in the memorandum. Any changes in capital will be notified to Companies House through a new statement of capital. See our regulation update on the new requirement to issue a statement of share capital.

Reduction of share capital: as an alternative to the current process requiring court approval, private companies will be able to choose to reduce their capital by special resolution, supported by a solvency statement by each of the directors. See our regulation update on the new requirement to issue a statement of share capital.

Overseas companies with a business establishment in the UK: there will be a single regime for the registration by overseas companies of the particulars of their UK establishments. There will also be a new regime for the registration of charges over property in the UK created by such companies. See our regulation update on the simplification of registration and filing regime for overseas companies.

Merger of Companies Registry in Northern Ireland with Companies House: there will be a single register of companies for the entire UK. As a result, companies incorporated in Northern Ireland wishing to establish a place of business elsewhere in the UK will no longer have to register as an overseas company. See our regulation update on the merger of Great Britain and Northern Ireland company registers.

Record-keeping requirements for limited liability partnerships (LLPs): new record-keeping requirements will be introduced for LLPs. For example, an LLP will have to keep a register of its members that contains prescribed information. The LLP must also tell Companies House where the register is kept available for inspection. See our regulation update on final company law changes for limited liability partnerships.

The above outlines key changes for the final implementation of the Companies Act 2006. Find detailed information about Companies Act changes on the Companies House website - Opens in a new window.

Regulation of community interest companies (CICs): new provisions will enable a CIC to convert to the asset-locked form of a community benefit society and a Scottish charity to convert to a CIC. In addition, requirements relating to the appointment and removal of directors, alternate directors and casting votes will be removed and a reasonable-persons test will be added to the community aspect section of the community interest test. See our regulation update on the changes to rules relating to community interest companies.

Formation of limited partnerships: on registration, Companies House will officially confirm that a limited partnership has been formed. Limited partnerships will also have to include in their name an indication of their legal status. See our regulation update on the official notification of a limited partnership's formation.

Employing people

The national minimum wage (NMW): the NMW for eligible workers will increase. It will rise to £5.80 an hour for workers aged 22 and above and to £4.83 an hour to workers aged 18-21. The rate for those under 18 but above compulsory school age rises to £3.57 an hour. See our regulation update on the increase in the national minimum wage rate.

Tips, service charges, etc and the NMW: bars, restaurants, hotels, etc will no longer be able to count service charges, tips, gratuities and cover charges paid to a worker through the employer's payroll as part of the NMW. See our regulation update on tips, service charges etc and the national minimum wage.

Redundancy payments and certain employment tribunal awards: the limit on a week's pay for calculating statutory redundancy payments, and tribunal awards that use a week's pay as the basis for calculation, will increase from £350 to £380. See our regulation update: rise in weekly limit for calculating statutory redundancy pay.

Your business sector

Retail

Tobacco products: cigarette retailers will no longer be able to sell packets of cigarettes which do not bear mandatory picture warnings. See our archived regulation update: mandatory picture health warnings on cigarettes and tobacco products.

Construction

The coming into force of changes to Part G of the Building Regulations 2000 have been delayed until 6 April 2010.

A new CCD summary page is published ahead of 6 April and 1 October each year. It may be updated from time to time, with each new version published replacing the preceding one.

If you would like to be kept informed of regulatory news and any other CCD regulations that might arise, you can find out about new and updated regulations affecting your business by using our regulation update service.

Departments and agencies taking part in the CCD process publish lists which include pending changes that fall outside of CCD, such as European regulations. You can find out more by visiting their websites using the following links:

You can suggest how the government can improve the regulation of business in your sector at the Better Regulation website - Opens in a new window.

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