Major changes coming to Companies House: what you need to do now

21/05/2025

Preparing for the Economic Crime and Corporate Transparency Act 2023 (ECCTA)

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is bringing in the most significant changes to Companies House in decades. The aim? To increase transparency, tackle fraud, and ensure that only legitimate businesses operate in the UK. The changes are being rolled out in stages, with full implementation expected by 2027. Some measures are already in place, and others will follow soon. JW Hinks is here to guide you through the upcoming requirements — helping you prepare, and ensure you remain compliant throughout the transition to avoid penalties.

What’s changing?

1. Enhanced powers for the registrar (from 4 March 2024)

Companies House now has increased authority:

More scrutiny of information
Companies House can now question, reject, or remove filings that appear inaccurate, misleading, or suspicious.
Power to remove false data
The Registrar can proactively delete factually incorrect or fraudulent information from the public register.
Right to reject poor-quality documents
Filings may be rejected if they don’t meet format standards or if supporting evidence is missing.
Tougher identity checks coming soon
Mandatory ID verification will be introduced for directors, PSCs, and anyone filing on behalf of a company.
More collaboration with enforcement bodies
Companies House can share data with law enforcement and regulatory agencies to support investigations into economic crime.

What you need to do:
Ensure all information filed at Companies House is accurate and up to date. We will be reviewing client records for inconsistencies.

2. Financial penalties introduced (from 2 May 2024)

Companies House now has powers to issue financial penalties for non-compliance with both the ECCTA and the Companies Act 2006.

Penalties will be enforceable without court proceedings, and guidance published in late 2024 outlines how fines will be calculated and contested.

3. Faster strike-off for false companies (winter 2024/25)

Companies House will be able to swiftly strike off companies that were formed on a false basis, cutting down on abuse of the register.

4. Key changes to identity verification – staggered introduction

All directors of UK companies, People with Significant Control (PSCs), and those delivering documents to Companies House will be required to verify their identity. This applies to:

Company directors (existing and newly appointed)
Members of LLPs
General partners in limited partnerships
PSCs (People with Significant Control)
Anyone filing on behalf of a company (e.g. agents, accountants, or administrators)

Companies House will not accept new company incorporations or filings without verified individuals.

How will identity verification work?

There will be two main ways to verify identity:

Directly through Companies House
Individuals can verify their identity through a digital service using ID documents (e.g. passport or driving licence).
Through an authorised agent (such as your accountant or company secretary)
These agents must be registered and supervised for anti-money laundering (AML) purposes and will be able to verify your identity on your behalf.

Once verified, an individual will be issued a verified ID number, which they will use when interacting with Companies House.

Becoming an Authorised Corporate Service Providers (ACSP):

Accountants, solicitors, and other service providers supervised under Money Laundering Regulations may register as ACSPs. These agents will be responsible for:

Carrying out identity verification checks that meet Companies House standards
Maintaining records for at least seven years
Confirming identity verification when submitting information

Timeline of implementation

Spring 2025:

Service providers can begin registering as Authorised Corporate Service Providers (ACSPs) to conduct identity verification (IDV) for Companies House
Individuals may voluntarily verify their ID
New processes begin for suppressing residential addresses from the public record

Autumn 2025:

Mandatory identity verification for all new directors, Persons with Significant Control (PSCs) and incorporations.
A 12-month transition period begins for existing directors and PSCs

Spring 2026:

Identity verification will be required for anyone filing documents
Filing agents must be registered as ACSPs
Companies House can reject submissions by disqualified directors

Changes for Limited Partnerships (by end of 2026)

Limited Partnerships will need to supply much more detailed information, including:

ID verification for general partners
A UK registered office
SIC code
Annual confirmation statement via an ACSP

Future stricter requirements for accounts and filing –

Companies House also plans to:

Mandate software-only filing for all accounts.
Abolish abridged accounts for small companies
Require all companies to file profit and loss accounts
Limit the frequency of changes to accounting reference periods
Restrict the use of corporate directors unless the entity is UK-registered and has a board made up solely of natural persons
Introduce enhanced audit exemption declarations from directors

What should businesses do now?

At JW Hinks, we recommend the following steps to prepare:

Ensure all directors have valid photo ID ready for identity verification.
Confirm your company records are accurate (registered address, shareholders, PSCs, SIC codes).
Speak to us before your next filing deadline – we can help you stay compliant and avoid penalties.
Watch for new filing formats and online submission requirements.

These reforms are designed to increase transparency, reduce economic crime, and ensure only legitimate businesses operate in the UK. However, they come with greater obligations for companies, their directors, and professional agents.

JW Hinks will continue to monitor the developments and share guidance as each new phase is introduced. If you need support understanding your responsibilities, please don’t hesitate to contact our team.