In an earlier Tax Tuesday blog on tax investigation, we discussed the impact of the Chancellor’s crack-down on compliance in 2025.
The new Companies House ID requirements are part of this wider move to increase transparency and will affect all those involved in running UK businesses.
Here’s what owner-managed businesses need to know, and what directors must do now to prepare.
Why are Companies House ID checks being introduced?
Companies House has historically had limited powers to verify the accuracy of company records. This has made it easier for fraudsters to abuse the register by setting up fake companies, appointing bogus directors or filing false information.
To tackle this, the government is giving Companies House new powers to verify the identity of anyone involved in setting up, running or owning a company in the UK. This forms part of a wider package of reforms to improve corporate transparency and reduce economic crime in the UK.
What does this mean for directors?
Under the new rules, anyone acting as a company director or operating as a person with significant control (PSC) will need to complete ID verification.
This will be mandatory for:
- New Director / PSC appointments – from 18 November 2025.
- Existing Director / PSC roles – during a 12-month transition ending November 2026
From 18 November, directors and PSCs will be able to see identity verification due dates for all their roles via the Companies House register. Our understanding is that these will largely be aligned with confirmation statement due dates, however we urge directors to get ahead of the requirement sooner rather than later.
How will ID verification work?
ID checks are being carried out through a digital process, the easiest one being directly via the GOV.UK One Login App.
Individuals will need to complete a series of steps, upload a photo of their ID document (e.g. passport or driving licence) and then take a live 180 selfie using facial recognition technology to confirm that the individual and ID is a match.
What happens if I don’t verify with Companies House?
If a director fails to complete ID verification, they won’t be able to act as a director. Companies that appoint unverified individuals may face sanctions, and the company itself could be prevented from filing documents or even face penalties.
The transition period for existing directors will begin in November 2025 and roll-on for 12 months. Once the system is fully implemented, failing to verify could disrupt your ability to trade compliantly.
Commenting on the new requirements, Amie Wilson, Operations Director, said: “For owner-managed businesses, these new ID checks may feel like just another layer of admin – but they are part of a much bigger push to clamp down on fraud and clean up the register. Making sure your company records are accurate and staying ahead of these changes will help avoid delays or penalties down the line. We are urging all our clients to act sooner rather than later.”
How can we help?
Given that the ID verification process involves personal identity checks and facial recognition scanning via the GOV.UK One Login, it is something that is most effective when completed by directors themselves. To aid with the process, we’ve put together a handy step-by-step guide to assist you with the verification process.
