The industry in which your company conducts business activities changes your tax liabilities, potential for funding and grants, and the types of investors/stakeholders you attract. The official way of identifying this industry is through your standard industrial classification (SIC) code. Having the wrong SIC code can not only filter you out of official searches, but it also makes your administration skills look poor. If your company changes or expands into another industry, your company’s SIC code must also change.
But how do you change your company’s SIC code? In this article, Real Business will answer this very question, including how many SIC codes you can have, choosing the right SIC code and more.
How do you change your company’s SIC code?
You cannot change your standard industrial classification without some administrative work. If you make a mistake or expand into another industry, you must file a confirmation statement to change the code.
Confirmation statements are legal documents that confirm your company details, required by Companies House every 12 months. Part of those company details is at least one code (up to four in total). SIC codes are not unique, they are identifiers for specific industries shared amongst many organisations registered with Companies House.
If you’re looking for how to change SIC codes on Companies House, these are the only two ways to do it:
- Wait until the next due date – Wait until a whole 12 months have passed since your last confirmation statement, and include the desired standard industrial classification code.
- Early confirmation statement – You can pay a filing fee of £34 through online services and £62 for paper submissions to change it sooner.
Why would you need to change your SIC code?
Some may think that a standard industrial classification code is just a series of numbers on a data sheet, but it’s not – it’s used by Companies House, HMRC and government bodies to categorise your business activities, all whilst assigning statistics, tax liabilities and audits.
A wrong SIC code, then, can cause various problems. For example, if your company worked in petrochemical manufacturing but later changed industries to wholesale and retail trade, neglecting to change your SIC code could subject you to environmental levy checks or fuel duty audits.
Reasons you should change your SIC code are as follows:
- Current code no longer reflects your business activities – If your business has evolved, having a wrong SIC code can mislead regulators and stakeholders.
- Wrong SIC code during company formation – SIC codes are very specific, and some inexperienced companies choose the wrong SIC code without realising.
- You added new service activities or products – Companies can use multiple SIC codes, up to four.
- Discontinued business activities – If you’ve stopped business activities in certain industries, it’s best to remove SIC codes for said sectors, as it may confuse insurers, clients and government bodies.
- You’re planning to apply for grants, funding or tenders tied to specific sectors – Public funding and tendering processes typically filter applicants based on SIC code.
- Stopping compliance and regulation checks – Like the example above, if you’re stopped business activities in a sector with additional checks and balances, it’s best to remove the designation and replace with an appropriate SIC code.
How do I know what my new SIC code should be?
Selecting the correct UK standard industrial classification (SIC) code isn’t as easy as it may seem. Each code denotes specific business activities, such as “01210 – Growing of grapes”.
Finding your new SIC code can be done in several ways:
- Consult the official SIC Code list – Companies House provides a condensed list of SIC codes that are organised into 21 main industry categories.
- Utilise online SIC code lookup platforms – Many platforms offer search functionalities that can look up UK SIC codes by business activity, such as Osome’s free lookup service.
- Review similar/competitor company codes – All companies have competitors or industry leaders. Take a look at their Companies House page and cross-reference their code.
- Determine the number of SIC codes required – Think of the four main distinct activities your company engages in, and assign the appropriate codes.
- Seek professional advice – If you’re still uncertain, consult with a professional advisor, accountant or representative of Companies House to find the appropriate code.
What are the technical activities that require specific SIC codes?
These activities span a wide range of services in engineering, architecture, scientific research and consultancy. These fields require precise SIC codes, accurately representing a company’s economic activity.
Some examples of technical activity SIC codes include:
- (71122) – Engineering-related scientific and technical consulting activities
- (71111) – Architectural activities
- (71129) – Other engineering activities (not including testing and analysis)
- (71200) – Technical testing and analysis
- (72110) – Research and experimental development on biotechnology
- (72190) – Other research and experimental development on natural sciences and engineering
- (19201) – Mineral oil refining
- (19209) – Other treatment of petroleum products (excluding petrochemicals manufacture)
- (46711) – Wholesale of petroleum and petroleum products
What codes apply to public administration and extraterritorial organisations?
Companies that are involved in the aforementioned functions must use codes that reflect their governmental or international remit. They are typically reserved for government bodies, embassies and institutions that operate beyond domestic jurisdiction.
Applicable SIC codes include:
- (84110) General public administration activities – This covers executive and legislative functions, including fiscal administration, government policy formulation, and related oversight.
- (84120) Regulation of health care, education, cultural and other social services, not incl. social security – Used by public bodies managing regulatory oversight in education, health, and cultural services.
- (84130) Regulation of and contribution to more efficient operation of businesses – This applies to public bodies regulating commercial activity or supporting business infrastructure.
- (84210) Foreign affairs – Suitable for diplomatic services and bodies responsible for international relations.
- (84220) Defence activities – Covers military, defence, and national security services, including armed forces administration.
- (84230) Justice and judicial activities – Used by courts, tribunals, and legal enforcement agencies.
- (84240) Public order and safety activities – Suitable for police forces, fire services, and emergency planning bodies.
- (84300) Compulsory social security activities – This applies to national insurance and pension administration bodies.
- (99000) Activities of extraterritorial organisations and bodies – Used by embassies, consulates, international bodies (e.g. UN agencies), and other organisations operating outside UK domestic jurisdiction.
Conclusion
This should be all you need to know about changing your SIC code. A limited company has a lot of advantages that they have access to as a default, but a lot of it can be negated by having the wrong code.
FAQ – Can sole traders get a SIC code?
Typically, only companies can have SIC codes assigned to them, as Companies House only deals with legal and registered entities. A sole trader cannot have one assigned to them as a result. However, some sole traders may want a SIC code so that they can:
- Grants, fundings or loans – Some government bodies and financial institutions may require a SIC code.
- License or permit applications – Certain professionals or business activities necessitate specific licenses and permits.
- Statistical surveys – Organisations that conduct industry-related surveys may operate using SIC codes
- Insurance policies – Insurers may use your SIC code to determine coverage options.
Bear in mind that you will have nowhere to officially put this, considering SIC codes are primarily stored and searched for on the Companies House website.
FAQ – How do you check your company’s SIC code?
You can check your current SIC code on Companies House via the next simple steps:
- Find your company – Go to the Companies House search page.
- Locate your company – Type in your company name or registration number, and select your company from the search results.
- Review company details – Your company’s overview page will have a “Nature of business (SIC)” section aligned left and lower on the page.