As many of you will already be aware, new Companies House rules start coming into force from August 2025 aiming to tackle scams by introducing mandatory identity verification for all limited company directors and any persons of significant control.
The rules have been introduced under the Economic Crime and Corporate Transparency Act and have been voluntary since April 2025.
They will become mandatory from this autumn and company directors will need to complete the Companies House ID checks in time for when your next confirmation statement is submitted to them to confirm your business details.
Companies House can impose penalties or even disqualify directors for failing to comply.
Many accountants, including ourselves, are charging to complete the process whilst some law firms have fees of around £250 – but it is possible to avoid paying a fee and completing the process yourself, as the ID checks can only take a couple of minutes.
What are the Companies House identity changes?
From this autumn, anyone running, owning or controlling a company or setting one up in the UK will need to prove they are who they claim to be by verifying their identity.
The Government are trying to support business and help people verify their identities, which is why Companies House is contacting all companies with advice and guidance.
This is part of a coordinated effort to help companies to comply before it becomes a legal requirement. They have been encouraging people to verify as early as possible.
The aim is to reduce the risk of fraud and improve transparency, trust and accuracy of information on the Companies House register.
The ID check only needs to be done once even if you are a director of more than one company.
Companies House has been emailing directors from companies.house@notifications.service.gov.uk, which is a genuine email address but some clients have been naturally suspicious about how genuine it is and have only acted once prompted by their accountant.
How to verify your identity to Companies House for free
There are three ways to verify your identity as a company director.
- The simplest way is to verify online but you will need to setup a free Gov.uk One Login. This is different to your Government Gateway and Companies House account, so means remembering another login and password. Once you have created a login, you will need to download the Government’s One Login app. You will then need to use your smartphone to scan your passport or driving licence through the app and then take a selfie to confirm your identity.
- There is also a no-photo option that can be used online by submitting a bank statement. If approved, you will then receive a code from Companies House that confirms your ID check and will be needed by you or your accountant when filing a confirmation statement for your business.
- You can also get help in a Post Office if you cannot verify online, or take professional advice by using an accountant or lawyer.
How easy is it to verify identify with Companies House?
It only takes a few minutes to complete the ID check once you have a login and have connected to your Companies House business account.
If you have a company with only one or just a few directors, which is the case for most small companies including many of our clients, the process should be straightforward. There have been complaints about technical issues, which is pushing some people to pay for a service that doesn’t take long.
The troubleshooting guidance is still not as clear as it could be, but you are able to call Companies House through their general enquiries number on 0303 1234 500 on weekdays between 8:30 am and 6:00pm.
One thing putting some directors off is having to create an additional login and password, but it is very important to comply to ensure you can carry on with your business.
Firms that delay verification and do not comply could face serious consequences. Directors, persons of significant control, and the companies they represent may be barred from filing documents, engaging in acquisitions, and company officers could be disqualified which could obviously cause lasting operational and reputational harm.
There are also severe financial repercussions, including unlimited fines. Regulators will enforce the consequences of non-compliance, making examples of firms left behind, as seen with previous regulations like GDPR.
Using an Authorised Corporate Service Provider (ACSP)
You can ask an Authorised Corporate Service Provider (ACSP) to verify your identity on your behalf – for example, a solicitor or an accountant such as ourselves who are registered as an ACSP.
When we have confirmed we can verify your identity, you will need to provide documents from an approved list as evidence of your identity, and we will charge for this service.
As you will have to provide identity evidence either way, you can see why we would encourage you to deal directly with Companies House. If you wish to do this you can copy and use the link: Verify your identity for Companies House – GOV.UK
If you have queries relating to this, please contact us emailing clientcare@elevateaccountancy.co.uk and we will see what we can do to help you.