Directors to face identity checks under Companies House reforms
Companies House has published further guidance on the introduction of mandatory identity verification for company directors and other individuals involved in company filings. The change forms part of the reforms introduced by the Economic Crime and Corporate Transparency Act 2023. What do you need to know?
Under the new regime, company directors, people with significant control and individuals who file documents at Companies House will be required to verify their identity. The aim is to improve the accuracy of the Companies House register and prevent misuse of company structures for fraud and other economic crime. Identity verification will be possible in two ways. You will be able to complete the process directly through Companies House using its digital verification system, or you can verify your identity through an authorised corporate service provider, such as an accountant or company formation agent.
The verification requirement will be introduced in stages. Once the system is fully implemented, new directors will need to complete identity verification before their appointment can be registered. Existing directors will be given a transition period to comply with the new rules. For business owners, the practical impact is that company filings will increasingly be tied to verified identities. Directors who fail to complete the process may find they are unable to make filings or act for the company through the Companies House system. You should therefore monitor Companies House guidance and announcements and ensure directors are prepared for the new verification requirements.
Related Topics
-
Getting out of the child benefit tax trap
You expect to earn over £60,000 for this tax year which means you may have to pay back some or all of your family’s child benefit due to the high income child benefit charge (HICBC). Is it possible to reduce the charge?
-
HMRC targets “dodgy shops” in new compliance crackdown
The government has announced a new crackdown on businesses suspected of facilitating tax evasion, with HMRC increasing its focus on so-called "dodgy shops" used to enable tax fraud. What is HMRC targeting?
-
Mandatory payrolling of benefits in kind delayed
The government has revised plans to introduce the mandatory payrolling of benefits in kind from 6 April 2027, which will now be limited to company cars, vans, fuel and medical benefits. What's the full story?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.