Changes are coming for the Directors of Companies
Some directors and people with significant control (PSCs) may have already received emails or letters from Companies House, asking them to verify their identity.
The requests for identity verification stem from the Economic Crime and Corporate Transparency Act 2023 (ECCTA) and aim to reduce the amount of fraud facilitated through Companies House. The hope is that if all directors are verified, the amount of fraud will be reduced.
The act has several phased changes planned that will affect Companies registered in England and Wales.
Please note that Companies House is issuing emails before making the accounting industry aware of the exact rules & implementation date, which is creating confusion.
Identity Verification (IDV)
Company directors, PSCs (Persons with Significant Control), LLP members, and anyone filing on behalf of a company will need to verify their identities with Companies House.
During Autumn 2025, Mandatory IDV will be required for:
- New company incorporations
- New appointments of directors/PSCs in existing companies
- Start of the 12‑month transition: existing directors/PSCs must verify by their next Confirmation Statement (by autumn 2026)
Ongoing compliance:
IDV is generally a one‑off, but there will be scope for re‑verification.
As a Director, you should now go to Companies House (GOV.UK One Login) and complete the ID verification.
If you have a smartphone and a passport, then this is the quickest, cheapest and simplest route.
Steps:
- Register or log in to GOV.UK One Login.
- Use “Verify your identity for Companies House”.
- Choose a verification method:
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- ID Check app (smartphone selfie + document scan).
- Web service (answer UK-specific security questions).
- Face-to-face at a Post Office (bring original photo ID) (gov.uk, mills-reeve.com).
4. Submit one of the accepted documents:
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- Passport (biometric)
- UK driving licence
- UK biometric residence permit/card
- UK Frontier Worker permit (gov.uk).
5. Enter personal details: name, birth date, current (and prior, if <12 months) address, and a unique email.
Once verified, you’ll receive a Companies House personal code, unique to you (gov.uk). Keep this code somewhere safe, as you will need this to prove your ID verification
Other changes for SMES at Companies House
Enforcement & Penalties
Companies House now has strengthened powers (since March 2024):
It can reject or remove false filings, impose fines up to £10,000, and criminally prosecute individuals for fraudulent or obstructive activity (up to 2 years in prison).
As of April 2025, reportedly over 210,000 false records have been removed. Further improvements are anticipated by summer 2025.
From September 2025, a new “failure to prevent fraud” offence targets large organisations that haven’t implemented reasonable anti‑fraud measures.
Centralisation of Registers & Filing Changes
Companies House will replace company‑maintained registers (directors, secretaries, PSCs, addresses) with a centralised register, updated within 14 days of changes.
Digital filing
Filings made on or after 1 April 2027 must be made using commercial software. HMRC and paper routes will be closed for filings.
Profit and Loss
From 1 April 2027, Small Companies and micro-entities will be required to submit a profit and loss account to Companies House to improve transparency. Apart from concerns about more data being available on public record for anyone maintaining quality digital bookkeeping records, supplying a summarised profit & loss shouldn’t be too much extra work.
If you need any help setting up on Xero or cleaning up your bookkeeping records to make this process easier, please don’t hesitate to get in touch.
These reforms represent one of the most significant overhauls since Companies House was established in 1844, aiming to increase transparency and reduce fraud.
Please get in touch with us if you have any questions about the changes.